Maruti Suzuki India Limited

Consumer Cyclical — Auto Manufacturers · NSE

₹11,489.00+₹44.00 (+0.38%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of Maruti Suzuki India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Maruti Suzuki India Limited manufactures and sells motor vehicles, parts, and accessories in India. The company offers passenger and commercial vehicles, including hatchbacks, sedans, SUVs, MPVs, and vans, as well as light commercial vehicles.

IndustryAuto Manufacturers

SectorConsumer Cyclical

Employees25,831

Annual revenue₹1.77 L Cr

How does it make money?

Turns over ₹1.77 L Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 25,831 employees supports ₹6.86 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.86 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA MOTORS LIMITED, TATA MOTORS PASS VEH LTD, MAHINDRA & MAHINDRA LTD, BAJAJ AUTO LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 17.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE30.3%

What is the outlook?

33 analysts covering the stock expect revenue to grow about 9.9% and earnings to grow about 28.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+9.9%

Est. earnings growth+28.6%

Analysts33

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +56% while net margin moved +14% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+56%

Margin effect+14%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 25.2x already prices in growth
• P/E is close to its own historical median of 30.9x

Quality vs. Valuation

Company Quality

75/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

57/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

25.2x

3Y Median

30.9x

40 monthly readings · mean 33.5x · range 24.6x–49.9x

Sector Median

24.7x

median of 3 sector peers

🟢Current valuation is approximately 18% below its 3y median of 30.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 24.7x.

vs. its own history

Fair

30.9x median over 40 months · -18%

vs. sector peers

Fair

24.7x median of 3 peers · +2%

vs. generic bands

Fair

15x–35x

EV/EBITDA

16.1x

PEG

1.19

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 92% over 3 years.
Cash generation is improving
Free cash flow is up 216% over 3 years.
Return on capital is rising
ROCE has improved from 13.8% to 17.2%.
Very low debt
Debt/Equity of 0.10x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Inventory building faster than salesFinancial
Inventory up 108% against revenue up 56% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 92% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹8,702 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

No clear risk case emerges from the available numbers — which is not the same as there being none.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 15.9% CAGR
Latest reported year was 35.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹8,702 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 17.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹3.61 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

25.2x

Fair

Fairly valued against the generic band

P/B Ratio

3.37x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹455.91

Profitable

Profitable on a per-share basis

ROE

13.7%

Moderate

Moderate capital efficiency

ROCE

17.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.10x

Low

Conservative leverage

Revenue Growth (YoY)

35.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-9.1%

Falling

Profits are shrinking

Dividend Yield

1.22%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹8,702 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

19.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

4.8%

Weak

Thin margins leave little room for error

Net Margin

7.3%

Average

Average bottom-line conversion

Current Ratio

1.07

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

11694.8 / 12650.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1.14 L Cr	₹1.36 L Cr	₹1.47 L Cr	₹1.77 L Cr	+15.9%
EBITDA	₹13,655 Cr	₹19,283 Cr	₹20,961 Cr	₹22,432 Cr	+18.0%
EBITDA Margin	12.0%	14.1%	14.2%	12.7%	—
PAT (Net Profit)	₹8,264 Cr	₹13,488 Cr	₹14,500 Cr	₹14,680 Cr	+21.1%
EPS	₹262.84	₹429.01	₹461.2	₹466.9	+21.1%
ROE	11.1%	15.8%	15.1%	13.7%	—
ROCE	13.8%	19.7%	19.5%	17.2%	—
Total Debt	₹1,248 Cr	₹119 Cr	₹87 Cr	₹103 Cr	-56.5%
Free Cash Flow	₹2,750 Cr	₹7,601 Cr	₹5,559 Cr	₹8,702 Cr	+46.8%

🟢 Revenue has grown at 15.9% a year over 3 years.

🟢 EBITDA has grown at 18.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 12.7% over 3 years.

🟢 PAT (Net Profit) has grown at 21.1% a year over 3 years.

🟢 EPS has grown at 21.1% a year over 3 years.

🟢 ROE has risen from 11.1% to 13.7% over 3 years (+2.6 pts).

🟢 ROCE has risen from 13.8% to 17.2% over 3 years (+3.4 pts).

🟢 Total Debt has shrunk at 56.5% a year over 3 years.

🟢 Free Cash Flow has grown at 46.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.49 L Cr

Total Liabilities

₹41,725 Cr

Cash & Equivalents

₹67 Cr

Operating Cash Flow

₹19,100 Cr

Capex

-₹10,398 Cr

Shareholding (proxy)

Institutional Holding

25.7%

Insider Holding

61.6%

Corporate Actions

Next Earnings

27 Oct 2026

Dividend Rate

₹140

Ex-Dividend Date

07 Aug 2026

Analyst Consensus

Recommendations

34 Buy · 3 Hold · 2 Sell

Target Price (Mean)

₹15,391

+34.0% vs CMP

Target Range

₹11,500 – ₹17,775

Peer Comparison

Company	P/E	ROE
TATA MOTORS LIMITED	37.1x	32.8%
TATA MOTORS PASS VEH LTD	—	-3.0%
MAHINDRA & MAHINDRA LTD	17.8x	19.7%
BAJAJ AUTO LIMITED	24.7x	30.3%

Recent News

1 mixed1 negative4 general

Maruti Suzuki India Share Price News With Valuation Context

Univest, 15 Oct

Maruti Suzuki tanks 33% in calendar year 2026; stock hits 18-month low

Business Standard, 13 Oct

Why Is Maruti Suzuki Share Price Falling Over 4% After August Sales Data?

NDTV Profit, 01 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Motilal Oswal sets INR 14,404 target for Maruti Suzuki stock

ad-hoc-news.de, 15 Oct

Maruti Suzuki stock falls 2% on Q1 margin miss but brokerages bullish on recovery ahead; check target...

Moneycontrol.com, 03 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Maruti Suzuki India Sees Sharp Open Interest Surge Amid Weak Price Action

MarketsMojo, 13 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Risk

MiddlingProfitability · Valuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑