Maruti Suzuki India (MSIL IN): Buy: Weak results but margins bottomed

研报英文原文证据摘录

Maruti Suzuki India (MSIL IN): Buy: Weak results but margins bottomed

ths) is an upside risk to estimates. ROE (%) 14.5 13.8 16.6 16.3

1QFY27 highlights: Revenue came in at cINR524bn, in line with consensus estimates. 52-WEEK PRICE (INR)

Average realisation was down 1.2% q/q to INR731.8k. due to increased share of

18000.00

passenger cars. On a q-o-q basis, gross margin declined by 400bps to 19.2% and

EBITDA and EBIT margin both declined by 370bps to 8.6% and 5.1%, respectively. Other 14500.00

income was reported at INR18.7bn, higher than the average of INR11.6bn between 11000.00

08/25 01/26 07/26

1Q25-4Q26, driving PAT growth. EPS was reported at INR106.6, roughly 4% lower than Target price: 16000.00

Bloomberg consensus of INR110.4. High: 17292.00 Low: 12302.00 Current: 14234.00

Source: LSEG IBES, HSBC estimates

Margins movement in 1QFY27 – headwinds: Adverse RM cost movement >300bps

(110bps impact due to change in settlement cycle), unfavourable fixed cost absorption Yogesh Aggarwal*

>30bps, higher energy costs >20bps and adverse forex fluctuation >30bps. 1Q tailwinds: Head of Research, India

HSBC Securities and Capital Markets (India) Private Limited

lower other expenses >30bps and higher other operating income >30bps. Commodity yogeshaggarwal@hsbc.co.in

cost realisation and price hike: In 1Q, MSIL temporarily shifted from quarterly-lag to +91 22 2268 1246

monthly-lag settlement for its suppliers of aluminum, plastics and rubber. Hence, as per Vipul Agrawal*, CFA

Analyst, India Automotive

current spot rate there is headwind of 10-20bps to gross margin. It announced price hikes HSBC Securities and Capital Markets (India) Private Limited

of c1% (50bps in June and 50bps in August). vipul.agrawal@hsbc.co.in

+91 97690 51842