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Maruti Suzuki India Ltd logo

Maruti Suzuki India Ltd

NSE: MARUTI BSE: 532500

14903

(-1.72%)

Fri, 20 Feb 2026, 01:55 pm

Maruti Suzuki India Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (3.1x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).
  • Maruti Suzuki India's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Maruti Suzuki India's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Cash flow for Maruti Suzuki India is expected to increase by more than 50% in 2 years time.
  • Maruti Suzuki India's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • An improvement in Maruti Suzuki India's performance (ROE) is expected over the next 3 years.
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Cons

  • Maruti Suzuki India's earnings are expected to grow by 16.3% yearly, however this is not considered high growth (20% yearly).
  • Maruti Suzuki India's earnings growth is positive but not above the India market average.
  • Maruti Suzuki India's earnings are expected to decrease over the next year.
  • Maruti Suzuki India's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Maruti Suzuki India is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN Auto industry average.
  • Maruti Suzuki India's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Maruti Suzuki India's revenue is expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).
  • Maruti Suzuki India's revenue growth is positive but not above the India market average.

health

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Pros

  • Maruti Suzuki India is profitable, therefore cash runway is not a concern.
  • Maruti Suzuki India is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (3129.6%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 75.6x debt.
  • Maruti Suzuki India's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (3% vs 0.2% today).
  • Interest payments on debt are well covered by earnings (EBIT is 28.2x coverage).
  • Maruti Suzuki India's level of debt (0.2%) compared to net worth is satisfactory (less than 40%).
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Cons

  • Maruti Suzuki India's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Maruti Suzuki India board of directors is about average.
  • Kenichi's remuneration is lower than average for companies of similar size in India.
  • Kenichi's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the Maruti Suzuki India management team is about average.
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Cons

    misc

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    Pros

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      Cons

      • Maruti Suzuki India is covered by less than 3 analysts.
      • Maruti Suzuki India has significant price volatility in the past 3 months.

      past

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      Pros

      • Maruti Suzuki India's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
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      Cons

      • Maruti Suzuki India's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Maruti Suzuki India used its assets less efficiently than the IN Auto industry average last year based on Return on Assets.
      • Maruti Suzuki India's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Maruti Suzuki India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Maruti Suzuki India's 1-year earnings growth is negative, it can't be compared to the IN Auto industry average.

      value

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      Pros

      • MARUTI outperformed the Auto industry which returned -17.2% over the past year.
      • MARUTI matched the India Market (-14.5%) over the past year.
      • NSEI:MARUTI is up 7.9% along with the India market (8%) over the past month.
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      Cons

      • Maruti Suzuki India's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Maruti Suzuki India's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Maruti Suzuki India is overvalued based on assets compared to the IN Auto industry average.
      • Maruti Suzuki India is poor value based on expected growth next year.
      • Maruti Suzuki India is overvalued based on earnings compared to the IN Auto industry average.
      • Maruti Suzuki India is overvalued based on earnings compared to the India market.
      • NSEI:MARUTI is up 7.9% underperforming the Auto industry which returned 10.7% over the past month.

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