Maruti Suzuki India Upgraded to 'Hold' Rating by MarketsMOJO: Strong Fundamentals and Technical Trends Support Decision

Maruti Suzuki India, one of the leading players in the Indian automobile industry, has recently been upgraded to a 'Hold' rating by MarketsMOJO. This decision is based on various factors such as the company's low Debt to Equity ratio, attractive valuation with a 4 Price to Book Value, and high institutional holdings.
The company's technical trend has also improved from sideways to mildly bullish, with its Bollinger Band and KST technical factors also showing a bullish trend. With a ROE of 15.7, the stock is trading at a discount compared to its average historical valuations. Additionally, over the past year, the stock has generated a return of 9.21%, while its profits have risen by 22.8%.

Maruti Suzuki India has a market cap of Rs 3,47,541 crore, making it the second largest company in the sector. Its annual sales of Rs 145,212.60 crore account for 18.00% of the industry. However, the company has shown poor long-term growth with an annual operating profit growth rate of only 0.28% over the last 5 years.

In September 2024, the company declared negative results after 10 consecutive positive quarters. This has led to a decrease in its PAT(Q) by -18.1% and a lowest DPR(Y) at 29.14%. The company's DEBTORS TURNOVER RATIO(HY) is also at its lowest at 23.38 times.

Despite these challenges, Maruti Suzuki India remains a strong player in the industry with high institutional holdings and a significant market share. However, it has underperformed the market in the last 1 year, with a return of only 9.21% compared to the market's 32.67%. Based on these factors, MarketsMOJO has upgraded the stock to a 'Hold' rating.