Group 11

Carolin Maria
Thomas 1527141
Gelasia Mendonca
1527148

Valuation of Marutis Shares

PV Value of explicit period
PV of terminal value
Cash and cash equivalent
Total value of equity
No. of outstanding shares
Intrinsic value per share (Rs.)
today's price

32005.01
17468.86
912.1
50385.96
30.2
1668.409424
4,870.80

As the intrinsic value of

Maruti Suzuki's share is Rs.
1661.87 and today's market
price of the share is Rs.
4870.80, we can say that
the company's share have
been overvalued.

Year on year PAT and Sales

The major driver of Maruti is the material cost ie

the raw materials.
cles
i
h
e
V r own
fo
use
lo y
p
m
E
ee efts
ben

Labour

RAW
MATERIALS

Revenue Drivers

While comparing
maruti Suzuki with
itself from its previous
years, it has emerged
quiet successful on the
basis of its technology,
sales and market share
It has been projected
that the company has a
good scope of growth
in coming 5 years

Assumptions
Installed
Capacity
The current
installed
capacity of
2016 is
16,22,000 crs
as per the
annual report.
Maruti planning
on investing
$1bn and
launch over 15
new vehicles.
(economic
times)

Market share
The domestic
market share of
Maruti Suzuki is
46.8% as per
the annual
report. Due to
the companys
plans of
investing in new
vehicles a
constant growth
has been
assumed.

Domestic and
export sales
The current
domestic sales is
growing at 11.5%
and the exports are
growing at the rate
of 1.8%. The
domestic sales are
expected to grow
at a constant rate
with a 1% increase
in each year with
the exports
assumed to remain
constant at 1.8%.

Assumptions
Cost of Material
As the cost of
material is
constant at
66.7% in the
last 2 years,
we have
assumed it to
remain
constant.

Vehicle/dies for
own use
This has been
constant since
the year 2012
at (0.1%) thus
we have
assumed it to
continue at
the constant
rate in the
future as well.

Employee
beneft
expenses
After an
initial
increase in
the
expenses in
the year
2012, it has
remained
constant
upto the
year 2016.

CSR INITIATIVES

AD Y
O
A
R
ET TION
F
SA CA ING
VO AIN
R
IT Y
LT
N
MU PMEN
M
CO ELO
V
DE
T

Rise in Initiative for

training in driving upto 3
million.
Employees volunteering
program called eparivartan.
Periodic health camps for
villagers
Runs 2 schools for the
employees children.
The Company provides
employability of
underprivileged youth by
improving the quality of
skill training in Industrial

LATEST TRENDS
Launch of brezza in 2017
Ertiga MPV and the
sedan Ciaz are offered
with Marutis own SHVS
(Smart Hybrid Vehicle by
Suzuki) technology.
Fear of losing investors
due to target on diesel
vehicles causing air
Expansion
pollution. through
increase in outlets in
2017.
Bullish market for the
company, 20% rise

THANK
YOU!!!