Peer Groups CMP Market Cap EPS P/E (x) P/BV(x) Dividend Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)

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1 BUY CMP Target Price MARUTI SUZUKI INDIA LTD. Result Update: Q4 FY13 APRIL 29 th, 2013 ISIN: INE585B01010 Stock Data Sector Automobile BSE Code Face Value wk. High / Low (Rs.) / Volume (2wk. Avg ) Market Cap ( Rs in mn ) Annual Estimated Results (A*: Actual / E*: Estimated) Years FY13A FY14E FY15E Net Sales EBITDA Net Profit EPS P/E Shareholding Pattern (%) 1 Year Comparative Graph BSE SENSEX MARUTI SUZUKI INDIA LTD. SYNOPSIS Maruti Suzuki is India s largest passenger vehicle company with a market share close to 40% which offers 14 models with over 200 variants across the Industry segments like: Passenger cars, Utility vehicles and Vans. The Company has posted a net profit of Rs million for the quarter ended Mar. 31, 2013 as compared to Rs million for the quarter ended Mar. 31, Total Income has increased from Rs million for the quarter ended March 31, 2013 to Rs million for the quarter ended March 31, Maruti Suzuki India Ltd sold a total of 119,937 units in March 2013.This includes 12,047 units of exports. Maruti Suzuki Ltd recommended a dividend of 160 per cent (Rs 8/- per share of face value Rs. 5/) for Maruti Suzuki India Limited unveiled the SX4 in an all new form including fresh look exteriors & interiors, enhanced performance, and more convenience. Net Sales and Operating Profit of the company are expected to grow at a CAGR of 16% and 30% over 2012 to 2015E respectively. Maruti Suzuki s bestseller Swift Dzire and Ertiga have been awarded the prestigious India Design Mark: Good Design Award. Peer Groups CMP Market Cap EPS P/E (x) P/BV(x) Dividend Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%) Maruti Suzuki India Ltd Mahindra & Mahindra Ltd Force Motors Ltd Tata Motors Ltd

2 Investment Highlights STANDALONE Results updates- Q4 FY13, Maruti Suzuki is India s largest passenger vehicle company with a market share close to 40% which offers 14 models with over 200 variants across the Industry segments like: Passenger cars, Utility vehicles and Vans, reported its financial results for the quarter ended 31 MAR, Months MAR-13 MAR-12 % Change Net Sales % PAT % EPS % EBITDA % The company s net profit jumps to Rs million against Rs million in the corresponding quarter ending of previous year, an increase of 93.74%. Revenue for the quarter rose 13.45% to Rs million from Rs million, when compared with the prior year period. Reported earnings per share of the company stood at Rs a share during the quarter, registering 85.30% increase over previous year period. Profit before interest, depreciation and tax is Rs millions as against Rs millions in the corresponding period of the previous year. Expenditure : Break up of Expenditure Rs. Millions Q4 FY13 Q4 FY12 Cost of Material consumed Depreciation Employees Benefit Expenses Other Expenditure Purchase of Traded Goods

3 Latest Updates The Company has posted a net profit of Rs million for the quarter ended Mar. 31, 2013 as compared to Rs million for the quarter ended Mar. 31, The increase in Net Profit during the quarter was on account of higher sales of new models such as Ertiga, DZire and Swift, cost reduction and localization efforts and the benefit of a favorable exchange rate. Total Income has increased from Rs million for the quarter ended March 31, 2013 to Rs million for the quarter ended March 31, Maruti Suzuki India Ltd has recommended a final dividend aggregating Rs. 24,167 lacs i.e. Rs. 8 per share (Nominal value Rs per share) (Previous Year Rs. 21,668 lacs i.e. Rs. 7.5 per share) for the financial year Financial Year During the year, the Company posted Net Sales (net of excise) of Rs. 426,125 million. Excluding the effect of the SPIL merger, Net Sales stood at Rs. 421,229 million an increase of 21.3 per cent over the comparable figure for the previous year. Maruti Suzuki India Ltd sold a total of 119,937 units in March 2013.This includes 12,047 units of exports. Maruti Suzuki India Limited unveiled the SX4 in an all new form including fresh look exteriors and interiors, enhanced performance, and more convenience. The all new SX4 delivers an improved fuel efficiency of 6 per 16.51kmpl in petrol. The Super Turbo Diesel SX4 delivers kmpl. The CNG option returns a fuel efficiency of 22.1 km/kg. Maruti Suzuki India Ltd has approved the amalgamation of the following seven wholly owned subsidiaries of Maruti Suzuki India Ltd with and into the Company: Maruti Insurance Business Agency Limited Maruti Insurance Agency Services Limited Maruti Insurance Distribution Services Limited Maruti Insurance Agency Logistics Limited Maruti Insurance Agency Solutions Limited Maruti Insurance Agency Network Limited Maruti Insurance Broker Limited

4 Company Profile Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary of Suzuki Motor Corporation, Japan. Maruti Suzuki has been the leader of the Indian car market for over two and a half decades. The company has two manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce over a 1.5 million (1,500,000) vehicles annually. The company plans to expand its manufacturing capacity to 1.75 million by Products: CARS The Company offers 15 brands and over 150 variants ranging from people's car Maruti 800 to the latest Life Utility Vehicle, Ertiga. The portfolio includes Maruti 800, Alto, Alto K10, A-star, Estilo, WagonR, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Kizashi, Grand Vitara, Gypsy and Ertiga. In an environment friendly initiative, in August 2010 Maruti Suzuki introduced factory fitted CNG option on 5 models across vehicle segments. These include Eeco, Alto, Estilo, Wagon R and Sx4. With this Maruti Suzuki became the first company in India to introduce factory fitted CNG vehicles. Plants 5 plants in the Gurgaon and Manesar areas of Haryana equip Maruti Suzuki with a production capability of 1.55 million units per annum. Passenger Cars Vans

5 Utility Vehicles

6 Financial Highlight STANDALONE Balance sheet as at March31, 2012 EQUITY AND LIABILITIES: Shareholders Funds: (A*- Actual, E* -Estimations & Rs. In Millions) FY12 FY13 FY14E FY15E Share Capital Reserves and Surplus Net worth (a) Non-Current Liabilities: Long-term borrowings Deferred Tax Liabilities [Net] Other Long Term Liabilities Long Term Provisions Long term liabilities (b) Current Liabilities: Short-term borrowings Trade Payables Other Current Liabilities Short Term Provisions Current Liabilities Total (a+b+c) ASSETS: Non-Current Assets: Fixed Assets (d) Other non-current assets Non Current Investments Long Term Loans and Advances (e) Current Assets: Current Investments Inventories Trade Receivables Cash and Bank Balances Short Term Loans and Advances Other Current Assets (f) Total (d+e+f)

7 Annual Profit & Loss Statement for the period of 2012 to 2015E Value(Rs.in.mn) FY12 FY13E FY14E FY15E Description 12m 12m 12m 12m Net Sales Other Income Total Income Expenditure Operating Profit Interest Gross profit Depreciation Profit Before Tax Tax Net Profit Equity capital Reserves Face value EPS Quarterly Profit & Loss Statement for the period of 30 Sep, 2012 to 30 June, 2013E Value(Rs.in.mn) 30-Sep Dec Mar June-13E Description 3m 3m 3m 3m Net sales Other income Total Income Expenditure Operating profit Interest Gross profit Depreciation Profit Before Tax Tax Net Profit Equity capital Face value EPS

8 Ratio Analysis Particulars FY12 FY13 FY14E FY15E EPS (Rs.) EBITDA Margin (%) 9.38% 11.57% 12.77% 13.47% PBT Margin (%) 6.03% 6.86% 7.77% 8.13% PAT Margin (%) 4.59% 5.49% 6.10% 6.43% P/E Ratio (x) ROE (%) 10.77% 12.88% 14.06% 14.13% ROCE (%) 28.90% 35.12% 37.88% 38.36% EV/EBITDA (x) Book Value (Rs.) P/BV Charts

9 Outlook and Conclusion At the current market price of Rs , the stock P/E ratio is at x FY14E and x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs and Rs respectively. Net Sales and Operating Profit of the company are expected to grow at a CAGR of 16% and 30% over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 8.01 x for FY14E and 6.84 x for FY15E. Price to Book Value of the stock is expected to be at 2.35 x and 2.03 x respectively for FY14E and FY15E. We recommend BUY in this particular scrip with a target price of Rs for Medium to Long term investment. Industry Overview The Indian automotive industry has emerged as a 'sunrise sector' in the Indian economy. India is being deemed as one of the world's fastest growing passenger car markets and second largest two wheeler manufacturer. It is also home for the largest motor cycle manufacturer and the fifth largest commercial vehicle manufacturer. India is expected to become the third largest automobile market in the world. Ford is looking at India as a major export hub, as per Mr. Joginder Singh, President and Managing Director, Ford India. By 2020, the luxury car segment is estimated to be around three per cent of the overall passenger car market in India. So, there is huge opportunity for growth. India is going to be one of the biggest markets for us, worldwide, according to Tomas Ernberg, Managing Director, Volvo Auto India. India is the largest base to export compact cars to Europe. Moreover, hybrid and electronic vehicles are new developments on the automobile canvas and India is one of the key markets for them. Global and Indian manufacturers are focusing their efforts to develop innovative products, technologies and supply chains.

10 Key Statistics The amount of cumulative foreign direct investment (FDI) inflow into the automobile industry during April 2000 to November 2012 was worth US$ 7,518 million, amounting to 4 per cent of the total FDI inflows (in terms of US$), as per data published by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce. India's scooter and motorcycle manufacturers have registered 4 per cent growth during April-November 2012, according to the recent data released by the Society of Indian Automobile Manufacturers (SIAM). Moreover, the passenger vehicles segment grew at 9.71 per cent during April-June 2012, while overall commercial vehicle segment registered an expansion of 6.06 per cent year-on-year (y-o-y). The Indian small and light commercial vehicle segment is expected to more than double by and to grow at 18.5 per cent compound annual growth rate (CAGR) for the next five years, according to a report titled, 'Strategic Assessment of Small and Light Commercial Vehicles Market in India' by Frost & Sullivan. Major Developments & Investments Volvo Group plans to invest Rs 3,800 crore (US$ million) in India over the next few years. Of this, Rs 1,800 crore (US$ million) would be invested in its joint venture (JV) with Eicher Motors. Volvo also aims to export about 30 per cent of the capacity at its Indian engine plant it plans to open in Pithampur, Madhya Pradesh in 2013, as it looks to leverage costs from India operations Honda Car India, the wholly-owned subsidiary of Honda Motor Co, plans to set up a greenfield diesel engine factory at its second industrial location in Rajasthan Jaguar Land Rover (JLR) will incur capital expenditure worth US$ 3.26 billion per year over the medium term mainly for product development, according to Crisil. In addition, Tata Motors has started assembling the Jaguar XF at its new facility in Chakan near Pune, Maharashtra The research and development (R&D) team of Fiat India will assist Chrysler to design and develop the smallest Jeep, to be launched globally by mid The Italian company has also commissioned an R&D setup, Chrysler India Automotive Pvt Ltd, in Chennai Hero MotoCorp has started construction of its fourth manufacturing plant and a new Global Parts Centre (GPC) at Neemrana, Rajasthan. The project will attract an investment of Rs 550 crore (US$ million) and both facilities are expected to be operational by FY Mahindra & Mahindra (M&M) plans to invest US$ 900 million over the next four years in SsangYong Motor for developing three new vehicles and six engines. The investment would be from internal accruals, fresh equity and debt, as per Mr Pawan Goenka, President (Automotive & Farm Equipment sectors), M&M. The firm plans to buy Navistar's 49 per cent stake in the truck and engine making joint ventures (JV)- Mahindra Navistar Automotives Ltd and Mahindra Navistar Engines Pvt Ltd - for about US$ million

11 Luxury carmakers like BMW, Audi are planning more 'Made in India' products to increase the number of offerings in the sub Rs 2.5 million (US$ 46,729) category to expand market. The luxury carmakers are planning to tap the younger customers with lower price points VE Commercial Vehicles Ltd (VECV), a joint venture between Sweden's Volvo Group and homegrown Eicher Motors, will invest Rs 1,200 crore (US$ million) by 2014 for expanding production capacity and developing new products Luxury car brands in India have registered a growth of 12.5 per cent during January-November 2012 period. The luxury car market in India is expected to reach 150,000 units by 2020, as per Mr Tomas Ernberg, Managing Director (MD), Volvo Auto India Government Initiatives The Government of India (GoI) plans to introduce fuel-efficiency ratings for automobiles to encourage sale of cars that consume less petrol or diesel, as per Mr Veerappa Moily, Union Minister for Petroleum and Natural Gas. The GoI plans to push the supply of vehicles powered by electricity over the next eight years. It is expected that there will be a demand of 5-7 million electricity-operated vehicles by The GoI allows 100 per cent foreign direct investment (FDI) in the automotive industry through automatic route. The Automotive Mission Plan (AMP) aims at doubling the contribution of automotive sector in gross domestic product (GDP) by taking the turnover to US$ 145 billion in 2016 with special emphasis on export of small cars, multi-utility vehicles (MUVs), two & three wheelers and auto components. Road Ahead The rapid improvement in infrastructure, huge domestic market, increasing purchasing power, established financial market and stable corporate governance framework have made the country a favourable destination for investment by global majors in the auto industry, as per Automotive Mission Plan (AMP) ( ). Additionally, the introduction of alternative fuels like hydrogen and bio fuels needs to be promoted to ensure sustainability of the industry over the long term. The vision of AMP aims India "to emerge as the destination of choice in the world for design and manufacture of automobiles and auto components with output reaching a level of US$ 145 billion accounting for more than 10 per cent of the GDP and providing additional employment to 25 million people by 2016."

12 In addition, the US-based car major, Ford aims to make India its export hub and plans to sell its products in more than 50 countries over a period of time. The company has committed a total investment of US$ 2 billion in India so far (November 2012). The luxury car market of India is set for growth over the medium and long term, according to Mr Philipp Von Sahr, President, BMW Group India. The market is about 30,000 cars a year and is rising steadily, added Mr Sahr. Disclaimer: This document prepared by our research analysts does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The information contained herein is from publicly available data or other sources believed to be reliable but do not represent that it is accurate or complete and it should not be relied on as such. Firstcall India Equity Advisors Pvt. Ltd. or any of it s affiliates shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. This document is provide for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision.

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