Maruti Suzuki India Share Price

Maruti Suzuki India Ltd: Fundamental Analysis of India’s Leading Car Manufacturer

Maruti Suzuki India Limited is an automobile manufacturing company in India. The business mainly concentrates on creating and manufacturing cars and passenger cars for the general public.

Maruti Suzuki Share News

The car industry, especially in India, got a new member in 1981 when Maruti Suzuki India was established. In 1982, the partnership increased by establishing a significant collaboration between the government of India and Japan’s famed Suzuki Motor Corporation (SMC). This strategic alliance created discriminative grounds for making many companies attain their accomplishments and feats.

Thus, by 2002, almost twenty years later, Maruti Suzuki India Ltd became a Subsidiary company of SMC through this outstanding stock acquisition. The shift highlighted the organization’s contribution to the Indian and worldwide automotive industries. Currently, there are over 10 car models produced by Maruti Suzuki, the largest subsidiary of the SMC in terms of sales. SMC entered into a fixed deal to control CCM by having 56%. The company is interested in Maruti Suzuki and owns 48% of its stake.

Another priority area is the share market, where Maruti Suzuki is well established. Being a public limited company, Maruti has its shares listed in the major Maruti Suzuki share price today trading platforms such as the National Stock Exchange of India Ltd –NSE and the Bombay Stock Exchange –BSE, confirming the confidence of the entire financial community and the general public toward the company’s brand. Maruti Suzuki has spread its operations across the country. These vehicles can easily be seen on Indian roads, further strengthening its position in the market as India's most significant passenger vehicle player. Besides, it is also known to be the largest exporter of Passenger Vehicles in the Indian market. In the FY 2022-23, the company recorded an excellent turnover of over ₹1 lakh cr, putting the company in the elite manufacturing companies club in India.

As of June 12, Maruti Suzuki share price NSE was trading at ₹12,870.

Automobile Industry Overview

It is found from the various types of research that the automobile market size is anticipated to be USD 5221295. For 2020-2027, it is expected to reach $94 million with an expected compound annual growth rate of 6. 39%. It determines that the automotive market of the respective country will increase to USD 300 billion in 2026. These ingredients have contributed towards the growth of this industry through increased income levels, urbanisation and improved purchasing power.

The Indian auto industry developed 2,144,339 units, comprising many forms of passenger automobiles. India is the third-largest manufacturer of heavy trucks and the fourth-largest manufacturer of cars globally. This business segment has also attracted FDI with cumulative equity FDI of about USD 35 seen in this sector. 40 billion between April of the year 2000 and September of 2023.

Maruti Suzuki India Limited's Competitors

Some of Maruti Suzuki India Limited’s major competitors include:

• M & M
• Mercury EV-Tech
• Hindustan Motors

Maruti Suzuki India Limited enjoys competitive advantages like strong client relationships, compliance standards, diverse service offerings and cost efficiencies. However, competition has intensified as more players enter the contract services space.

Maruti Suzuki share price history

Let's look at the significant milestones of Maruti Suzuki share dividend history, decade by decade.

1980s:

• In 1981, Maruti Udyog Limited was founded, driven by the vision of the Government of India.
• 1982 marked a crucial joint venture between the Government of India and Japan's Suzuki Motor Corporation.
• The iconic M800 was launched in 1983, followed by the Omni and Gypsy.
• Emphasizing local manufacturing, a component ecosystem was established.
• The first batch of 500 cars was exported to Hungary.
• The decade ended with the launch of the M1000 sedan.

1990s:

• Maruti Suzuki boosted the local component manufacturing ecosystem.
• Suzuki Motor Corporation increased its stake to 50%.
• New models like the Zen, Esteem, and WagonR were launched.
• The company celebrated the achievement of 1 million cars by gifting a Gypsy ambulance to Mother Teresa.
• The opening of Gurgaon Plant-3 marked significant infrastructure growth.

2000s:

• Maruti Finance and Maruti Insurance were introduced.
• The company was listed on the NSE and BSE.
• The Swift hatchback made its debut.
• A new manufacturing facility was established in Manesar, Haryana.
• Green initiatives were highlighted with the introduction of CNG cars.
• The brand expanded with models like Dzire and Eeco.

2011-2023:

• RC Bhargava received the Padma Bhushan.
• Models like Ertiga, Ciaz, Brezza, and Ignis hit the roads.
• Sustainability efforts included solar power initiatives and Smart Hybrid Technology.
• The company achieved a cumulative sales milestone of 25 million cars in India.
• Recent additions to the lineup included Invicto, Grand Vitara, and the eco-friendly Intelligent Electric Hybrid Vehicle.

Company Profile – Strengths and Weaknesses

Strengths

• 45% market Maruti Suzuki bonus share
• 12,000 employees
• Good advertising, product portfolio, self-competing brands
• Largest distribution network of dealers and after-sales service centres
• Strong brand value
• Strong presence in the second-hand car market
• Multiple revenue streams: Maruti finance, Maruti Insurance and Maruti driving schools
• Annual sale of 700,000 units and export of 50,000 units
• NEXA showrooms

Weaknesses

• Lack of penetration in the international market
• Poor Employee management: strikes, worker wage problems affecting brand image

The Financials

Financial Metric	Value
Market Cap	₹ 4,04,147 Cr
Book Value	₹ 2,724
Dividend Yield	0.70 %
ROCE	23.7 %
Face Value	₹ 5.00
ROE	18.3 %

Shareholding Pattern of Maruti Suzuki India Limited

Here’s the shareholding pattern of Maruti Suzuki India Limited:

• Promoters: 56.37 %
• Foreign Institutional Investors (FIIs): 22.57 %
• Domestic Institutional Investors (DIIs): 16.25 %
• Public: 4.81 %

Overall, Maruti Suzuki India Ltd. has a healthy mix of promoters and institutional and public shareholders. The shareholding pattern demonstrates the company's positive investment appeal for both domestic and foreign investors.

*The shareholding data is as of March 2024 and may change over time as the Maruti Suzuki share price.

Peer Comparison

Stock	P/E Ratio	ROCE %	Div. Yield
Maruti Suzuki	29.94	23.68	0.70
M & M	30.75	13.66	0.74
Mercury EV-Tech	613.63	2.96	0.00
Hindustan Motors	30.26	200.79	0.00