Analysis on Maruti Suzuki

8/12/2019 Analysis on Maruti Suzuki

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Maruti Suzuki India Limited is a publicly listed automakerin India. It is the

largest automobilemanufacturerin South Asia. Suzuki Motor Corporationof

Japan holds a majority stake in the company. It was the first company in India

to massproduce and sell more than a million cars. It is largely credited forha!ing brought in an automobile re!olution to India. It is the market leader in

India and on "# September $%%#& Maruti Udyog Limitedwas renamed

Maruti Suzuki India 'imited.

Maruti Udyog Limited (MUL)was established in (ebruary ")*"&It is

one of India+s leading automobile manufacturers and the market leader in the

car segment& both in terms of !olume of !ehicles sold and re!enue earned.

,ntil recently& "*.$*- of the company was owned by the Indian go!ernment&

and /.$- by Suzukiof Japan.0he Indian go!ernment held an initial public

offeringof $- of the company in June $%%1. As of "% May $%%#& 2o!t. ofIndia sold its complete share to Indian financial institutions. 3ith this& 2o!t. of

India no longer has stake in Maruti ,dyog.

0he company annually e4ports more than %&%%% cars and has ane4tremely large domestic market in India selling o!er #1%&%%% cars annually.Maruti *%%& till $%%/& was the India+s largest selling compact car e!er since itwas launched in ")*1. 5uring $%%#%*& Maruti Suzuki sold #6/&*/$ cars& ofwhich 1&%$/ were e4ported. In all& o!er si4 million Maruti Suzuki cars are onIndian roads since the first car was rolled out on "/ 5ecember ")*1.Maruti

Suzuki offers " models& Maruti *%%& Alto& 3agon7&8stilo& Astar& 7itz& Swift&
http://en.wikipedia.org/wiki/Automakerhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Suzuki_Wagon_Rhttp://en.wikipedia.org/wiki/Suzuki_Wagon_Rhttp://en.wikipedia.org/wiki/Suzuki_MR_Wagonhttp://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Automakerhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Suzuki_Wagon_Rhttp://en.wikipedia.org/wiki/Suzuki_MR_Wagonhttp://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/Suzuki_Swift


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Swift 59ire& S:/& ;mni& 8eco& 2ypsy& 2rand


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!enture.

Maruti ,dyog sold 1#&/)% units in March $%%"& $* percent more than in(ebruary& when it sold $)&6) passenger cars.

MA7,0I ,dyog in!ested 7s % crore in the current

fiscal besides targeting an o!er $/ percent rise in turno!er at 7s ""&%% crore

Suzuki takes o!er control in Maruti ,dyog by hiking its stake in thecompany from %- to /.$-& Maruti ,dyog becomes the subsidiary ofSuzuki

2003

8nters into an agreement with State Gank of India SGIB under which&each ofthe "$&%%% branches of India+s largest commercial bank is e4pected to sellone car per month

(I>G bans ;!erseas Corporate Godies ;CGB from Maruti I>;Central go!ernment picks up %.$1 per cent euity owned by the

employees+ trust in Maruti ,dyog 'td. M,'B

2004

7ises !olume car prices by 7s $%%%M,' un!eils new aftersales facility in Chennai

,n!eils


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period from se!en to eight years which will bring down the euated monthlyinstallment 8MIB to 7s $&/)) from 7s $&))0ies up with M7( to boost motorsports in India

Maruti un!eils +Gike to Car+ scheme in AhmedabadA7G' ties up with M,' for battery supply

Maruti join hands with Indiatimes to buy and sell used cars

Maruti ,dyog 'td+s M,'B ties with State Gank of India for car

financing.

2005 Announces a price hike of 7s $&%%%1&%%% across models all models e4cept

Maruti*%% on January & $%%. Maruti ,dyog 'td rolls out a newlook Maruti *%% with spruced up interiors

and upgrades that enable it to meet superior emission norms.M,' sets up second dri!ing school at Hollam

M,' to sell cars form J< with Suzuki

Maruti ,dyog launches Swift in 5elhi on May $& $%%.

Maruti un!eils scheme for Herala 2o!t employees

2007,0I Gank and Maruti ha!e joined hands for gi!ing car finance.Maruti ,dyog 'td on May %#& $%%# the Company has launched S:/ sedan

IPO !hat is a "ook "ui#ding I$%&

I>; is initial public offering where if any company wants to increase theircapital then the company will launch I>; through which it issue sharesinmarket and they will get the money which will help them out in e4panding theirbusiness.

A book building process is where the shareholders in!estin I>; directly from
http://www.indiastudychannel.com/resources/83089-Definition-IPO-Face-Value-Premium-Market.aspxhttp://www.indiastudychannel.com/resources/83089-Definition-IPO-Face-Value-Premium-Market.aspxhttp://www.indiastudychannel.com/resources/83089-Definition-IPO-Face-Value-Premium-Market.aspxhttp://www.indiastudychannel.com/resources/83089-Definition-IPO-Face-Value-Premium-Market.aspx


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open market there is no other way to do so. It brings transparency to in!estorsand the share allocation will be basis on lottery system or some systematicprocess.

A company will fi4 a price band according to their financial results o!er the last

year and e4pecting results for coming years. 0his price band consists of totalprice face !alue F premiumB

Face Value'einition

0he nominaldollaramountassigned to a securityby the issuer. (or an euity

security& face !alueis usually a !ery small amount that bearsno relationshipto its market price& e4cept for preferred stock& in which case face !alue isused to calculate di!idendpayments. (or a debt security& face !alue is theamount repaid to the in!estorwhen the bondmatures usually& corporatebondsha!e a face !alue of "%%%& municipal bonds%%%& and federalbonds"%&%%%B. In the secondary market& a bond+s pricefluctuateswith interestrates. If interest ratesare higher than the coupon rateon a bond& the bond willbe soldbelow face !alue at a discountB. If interestrates ha!e fallen& theprice will be sold abo!e face !alue. here a#so a##edparorpar !alue.

(ace !alue for Maruti Suzuki K 7s

Rights IssueMay $%%#

Suzuki to take *hee# at Maruti+ Rights issue at Rs 3,2-0 a share

I= a landmark decision& the Centre today decided to hand o!er managementcontrol in Maruti ,dyog 'td M,'B to Suzuki Motor Corporation SMCB for aconsideration of 7s "&%%% crore.

SMC would acuire controlling stake in the country+s leading car manufacturerby way of the Centre renouncing its subscription to a 7s /%%crore rightsissue of M,'. ;nce the rights issue is completed& SMC would end up ha!inga /.$% per cent stake in the company& with the Centre+s share falling to /./per cent.

a news reportB

Dividends
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'i.idendsare payments made by a corporationto its shareholdermembers.It is the portion of corporate profits paid out to stockholders.?"@3hen acorporation earns a profitor surplus& that money can be put to two usesL it caneither be rein!ested in the business called retained earningsB& or it can bepaid to the shareholders as a di!idend. Many corporations retain a portion of

their earnings and pay the remainder as a di!idend.

Dividend List

/ear Month 'i.idend ()

$%%) Apr #%

$%%* Apr "%%

$%%# Apr )%

$%%6 Jul #%

$%% May /%

$%%/ May 1%

Techn ical AnalysisBSE (eb $/&%%L%%

5ay+s Digh 'ow "&/)".%% "&1#."%

5ay+s rice "&/%.$

0urno!er %$/&"%#.%%

5eli!erable


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7ecent de!elopments after feb "%B0he stock slipped 7s $% or ". per cent pre!ious week. 0aking support from the $%%day mo!ing a!erage at 7s "&1$" and also just abo!e our support le!el of 7s "&1""&the stock bounced upward

Significant support for the nearterm is at 7s "&1$" and subseuent support le!el isat 7s "&$)". Shortterm trader can buy with tight stop at 7s "&1%& with targets at 7s"&/"%.

STOCK PERFORMANCE-2.82% in 1 Week-6.85% in 1 Month80.77% in 1 Year

Last Trade: 1,363.30INR

Trade Time: Apr 13

Change: 8.25(0.60%)

Prev C!se: 1"3#1.55

$pen: 1"3#5.00

id: 1363.30

As&: 1363.30

52'& ange: 33.00 * 1"#3#.30

+!,me: 30-"66

Avg +! (3m): -2#"6#ar&et Cap: /A

P (ttm): /A

P (ttm): /A

iv 4 ied: /A (/A%)


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Analysis on Maruti Suzuki

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