Buy Maruti Suzuki with a atarget of 4800, cmp 3350
- Management is expecting approx 10 in 2015 which is on the back of new launches of Maruti Suzuki including Ciaz, renewed Swift, Alto & Desire.
- Sales of Maruti Suzuki are expected to grow to 51400 cr in 2015, 62500 cr in 2016 & 74900 cr in 2017.
- PAT is expected to grow to 6600cr in 2015, 9000cr in 2015, 11400 cr in 2017
- EPS is expected to grow to 129 in 2015 to 240 in 2017
- EPS growth is expected to grow to 30% which means that we can value the company at 30PE
- At future EPS of 240 and PE of 30, we can value the share upto 7200 and if we keep a margin of safety of 33%, still the share is expected to grow to 4800.
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