Updates on Maruti Suzuki: Jan 19

Today Maruti Announced its Q3 19 results . Overall results were weak but its stock plunged upto 8% in the single day.

No. of Vehicles Sold 428643 vs QoQ 484848, YoY 431112
Result is below expectations
Revenue from Operations came at Rs. 19668.3 Cr (-12.3% QoQ, 2% YoY) vs expectation of Rs. 19782.1 Cr, QoQ Rs. 22433.2 Cr, YoY Rs. 19283.2 Cr
EBIDTA came at Rs. 1931.1 Cr (-43.7% QoQ, -36.4% YoY) vs expectation of Rs. 2733.9 Cr, QoQ Rs. 3431.3 Cr, YoY Rs. 3037.8 Cr
EBITDA Margin came at 9.8% vs expectation of 13.8%, QoQ 15.3%, YoY 15.8%

Adj. PAT came at Rs. 1489.3 Cr vs expectation of Rs. 1741 Cr, QoQ Rs. 2240.4 Cr, YoY Rs. 1799 Cr
Quarter EPS is Rs. 49.3
Share is trading at P/E of 21.5x FY20E EPS

Final Conclusion: Overall Results have degraded and EBITDA Margins have shrunk. One should not ignore the complete passenger Automobile industry is going through slowdown and testing investors patience.

One investor should understand being a bluechip stock & Market leader, Maruti has high chances to recover in coming months. In worst case stock may go upto 5000 levels.

Technical Outlook

Currently Maruti is trading around 6500 and it is very crutial support of the stock , If it is broken Maruti may head towards 6200/6000 levels.

Coming months will be very difficult for investors. Short term investors can accumulate the stock above 6700.