How Maruti Suzuki India shares are likely to perform tomorrow after Q4 results

Delhi-based auto major Maruti Suzuki's standalone net profit jumped 43 percent year-on-year (YoY) to Rs 2,623 crore for the March quarter. It was Rs 1,839 crore in the year-ago period. The profit missed CNBC-TV18's poll estimate, which saw the figure around Rs 2,773 crore.

Maruti Suzuki's revenue from operations jumped 20 percent on-year to Rs 32,048 crore for the fourth quarter but was lower than the Rs 32,675-crore estimate.

Himanshu Singh, Research analyst at Prabhudas Lilladher Pvt Ltd has a 'Buy' recommendation on the stock with a target price of Rs 10,600, suggesting a further upside of 25 percent from the current market levels.

"Revenue was slightly below our estimate while EBITDA margin was largely in line. Pressure on gross margin was offset by lower operating expenses. Overall, in line results from company. MSIL is planning to add 1mn unit capacity, will await for more details on the call today," the brokerage said.

Following the announcement of the results, shares of Nifty heavyweight Maruti were trading 0.43 percent higher at Rs 8,504.95 on NSE. It settled 0.19 percent higher at Rs 8,485 apiece. The index has offered flattish returns so far this year.

The stock has a average broker target of Rs 9,509, implying a potential upside of 11.78 percent, according to data from Trendlyne.

On the operating front, EBITDA or earnings before interest, taxes, depreciation and amortization surged 38 percent to Rs 3,350 crore and margins improved 130 basis points YoY to 10.4 percent. Estimates had pegged EBITDA margin at 10.1 percent.

The board has approved a dividend of Rs 90 per share for the financial year 2022-23. Maruti Suzuki India has declared 19 dividends since July 8, 2004.

In the past 12 months, Maruti Suzuki India has declared an equity dividend amounting to Rs 60 per share. At the current share price of Rs 8506.90, this results in a dividend yield of 0.71 percent.