IDBI Capital - Maruti Udyog

IDBI Capital in its company report on Maruti Udyog, recommend a buy with a 1-year price target of Rs.1,068.

According to the brokerage house, operating profit (EBITDA) for H1FY07 showed a jump of 35.7% vis-à-vis same period of the earlier year. The EBITDA margins for H1FY07 have expanded to 18.3% as compared to 15.6% for H1FY06. Average vehicle realization of the Company was flat at around Rs2.15 lac during H1FY07 vis-à-vis H1FY06. However, the margins showed improvement due to tighter control over the raw material costs.

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