FUNDAMENTAL AND TECHNICAL ANALYSIS OF MARUTI SUZUKI

Presented by:- - Vijay Devani - Bhavik Prajapati - Shailesh Bhalala - Hiren Joshi - Nimesh Bhaesadadiya - Mihir Rana - Ashish Tailor - Hitesh Basopiya - Hiren Patel - Mazahar Khan - Mahesh Sapariya

Fundamental Analysis

-To measure stock’s or script’s intrinsic value by examining related economic, financial and other factors.

-under-priced = buy, over-priced = sell or short

Indian Economic Analysis

-GDP-Inflation Rate- Interest Rate- Exchange Rate- Flow of FII- Sensex movement

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PLATEGDP Groth rate

India's Economy Expanded 8.8% in The Second Quarter From a Year Earlier, Compared to an 8.6% On-Year Expansion in the First Due To Robust Activity In Manufacturing. GDP Of The Indian Economy Is Estimated To Grow At The Rate Of 8.5% In Current Fiscal Year And 9% In 2011-12, According To Finance Minister, It Will Be So Because Of Policies Of FDI, SEZ, & NRI Investment have been Framed To Give A Push To Economy And GDP, With Macro Economic Stability.

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PLATEInflation rate

Inflation rate in India was reported at 13.73 percent in June of 2010. Inflation rate is responding due to unbalanced Aggregate Demand and Aggregate Supply. Recently inflation rate is decrease due to the mgt. of export of products, and measure taken by RBI. In coming year, it is also expected to decrease.

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PLATEInterest rate

The Benchmark Interest Rate(Reverse Repo Rate) In India Was Last Reported At 4.50 Percent. From 2000 Until 2010, India's Average Interest Rate Was 5.82 Percent. RBI Usually Raise Interest Rate To Fight Against Inflation.

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PLATEExchange Rate(USDINR)

From the graph we can say that Indian Rupee exchange rate (USDINR) depreciated 2.81 percent during the last 12 months.

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PLATEFlow of FII

From last 4 months FII net flow is in positive value. We can also find that it is correlate to BSE sensex movement.

1-Sep-09

13-Sep-09

25-Sep-09

7-Oct-

09

19-Oct-

09

31-Oct-

09

12-Nov-0

9

24-Nov-0

9

6-Dec-

09

18-Dec-

09

30-Dec-

09

11-Jan-10

23-Jan-10

4-Feb-10

16-Feb-10

28-Feb-10

12-Mar-

10

24-Mar-

10

5-Apr-1

0

17-Apr-1

0

29-Apr-1

0

11-May

-10

23-May

-10

4-Jun-10

16-Jun-10

28-Jun-10

10-Jul-1

0

22-Jul-1

0

3-Aug-1

0

15-Aug-1

0

27-Aug-1

0

8-Sep-10

-4000

-3000

-2000

-1000

0

1000

2000

3000

4000

Series1

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PLATEBSE-Sensitive Index movement

SENSEX, rallied 2649 points or 17.07 percent during the last 12 months due to strong economic outlook and somehow controlled economic factors. Usually, Sensex is responding by the Results of company earning, global cues, investor sentiment, sectorial performance and country’s economic growth.

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PLATEMonetary policy data

Repo Rate : 6.00%Reverse Repo rate: 5.00%Bank rate : 6%SLR : 25%CRR :6%

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PLATEIndian Automobile Industry Analysis

Market capitalization of leading firmsFIRM PRODUCTS FOREIGN Partners MARKET

CAPITALIZATION(IN BILLIONS)

STOCK LISTING

Maruti Suzuki Passenger Vehicles Suzuki Motor 9.2 Mumbai

Tata Motors Passengers and Commercial Vehicles

Fiat 7.4 Mumbai, Ney york

Mahindra & Mahindra

Passengers ,Commercial Vehicles,Two wheelers

Navistar for commercial vehicles,Renault for Passenger cars

6.1 Mumbai, london

Hero Honda Two Wheelers Honda Motors 7.7 Mumbai

Bajaj Auto Two and Three wheelers

Renault-Nissan for planned small car

5.7 Mumbai, london

Following are the sales data

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PLATEReasons for high sales growth rate

-New launches of product like Maruti Suzuki Ritz (May 2009), all-new Grand Vitara (July'09), new Estilo with K-series engine (Aug'09), new SX4 with VVT engine and SX4 with automatic transmission (Oct'09) and Eeco (January 2010).

-Favorable conditions in the domestic market supported by the government's stimulus package and ease of automobile finance.

-Prices of raw material was preferable.

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PLATEFuture Forecast

-Due to high sales in year 2010 maruti is investing 17 billion rupees for new plants.

-As per the indian context people of india will buy vehicles in the month of october –november due to the festivals so the sales and the share price will increase.

-Metal price ,fuel and raw material prices are going to increase as a result which will lead to increase in the production cost of the cars and will effect on share price.

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PLATEMaruti Suzuki India Ltd.’s Analysis

2010 2009 2008

Liquidity Measurement:

- Current Ratio 1.2 1.2 1.1

- Quick Ratio 0.67 1.26 0.66

Profitability Measurement

- Gross Margin 8.85 5.77 10.97

- Net Profit Margin 8.29 5.68 9.24

- ROE 21.1 13.04 20.56

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PLATEMaruti Suzuki India Ltd.’s Analysis

2010 2009 2008

Investment Valuation Ratio

- EPS 86.45 42.15 60.21

- Price to book value 3.5 2.4 2.9

- Price to earning ratio 16.6 18.7 14.1

- PEG

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PLATEMaruti Suzuki Management

-CSR activity of company-Progressive Maruti’s R&D.-Maruti Insurance and Finance- Future business plan & project

Technical Analysis

-In the nerrowest sense,tech. Analysis is based on the assumption that market price flutuations reflact the logical & emotional forces preveling in the stock market

-Tech. Analysis can be broaken down into three essential parts, 1.sentiments, 2.flow of funds 3.market struker indicators

Daily chart

Weekly chart

Monthly chart

Six Months chart

Rounded Bottom

Rounded Top

Rounded Bottom

Moving Average chart

CONCLUSION

-Sensex increase to 3 % in last two days, it is 32 month high, that may affect price of Maruti Suzuki.

-The main reasons for this latest rally include strong foreign institutional investors (FII), healthy Indian & Chinese mfg. data.

-Good monsoon -Industrial growth-(13.8 %)-GDP( 8-8.5 %)

-Reforms in the govt. policies -FDI in media & retail -Fuel & Gas price

-FII inflows -64k crore into the Indian markets since January