Indian stock alert

INDIA

CLOSING UPDATE: Maruti Suzuki India increases further 0.9%, led CNX Auto index higher 25 May 2018 18:17 IST

NEWS BITES - BRIC

This is an end of day Alert, produced after today's Indian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Maruti Suzuki India, India's largest cars & utility vehicles company by market capitalisation, has increased 1.6% to trade at Rs8,548.15 vs. the CNX Auto index which strengthened 201.4 points (or 1.9%) to 10,883.0. Representing a weighting of about 26.2% of the index, the stock accounted for 22.6% of today's gain. Compared with the BSE SENSEX Index which rose 261.8 points (or 0.8%) in the day, this represented a relative price increase of 0.9%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Earnings/Growth of 1.19 [3.9]

+ Dividend yield of 0.9% [0.7%]

+ Return on Equity 18.5% [16.4%]

+ Return on Assets 13.1% [6.8%]

+ Return on Capital Employed 24.9% [17.6%]

Bullish Signals:

+ Total Liabilities/EBITDA of 1.3 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 9.1% in the last 3 years. This is better than the sector average of 6.8% and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity of 18.5% is better than sector average of 16.4%.

Note

Maruti Suzuki India today is at a discount of 14.5% to the 12-month high of Rs9,996.40 on 20 Dec, 2017. It is at a premium of 28.9% to the 12-month low of Rs6,633.65 on 10 Jul, 2017.

Bearish Signals:

The negative 117.46 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

The price sank 4.3% in the last month.

Tobin's Q Ratio is 4.3. Compared with the rest of the market the stock is overvalued and ranks in the bottom 8% of stocks by value of Q Ratio.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Sales of 3.1 [2.1]

Price to Book of 6.1 [5.2]

Year-on-Year Earnings Growth of 5% [7.8%]

TODAY'S ALERT

Morning Alert: Maruti Suzuki India increases 0.7%, leads CNX Auto index higher

25 May 2018 10:17 IST

Maruti Suzuki India Limited (NSE:MARUTI) has increased 0.7% to trade at Rs8,470.0 vs. the CNX Auto index which strengthened 81.9 points (or 0.8%) to 10,763.5. Representing a weighting of about 26.3% of the index, the stock accounted for 24.0% of today's gain. Trading volume was 87% of average so far today.

RECENT ALERTS

End of Day Alert: Maruti Suzuki India inches higher, resistance at 12-day EMA

22 May 2018 18:08 IST

Maruti Suzuki India, India's largest cars & utility vehicles company by market capitalisation, has increased 1.6% but fell short of the 12-day Exponential Moving Average [EMA] of Rs8,654.54. Compared with the BSE SENSEX Index which rose 35.1 points (or 0.1%) in the day, this represented a relative price increase of 1.5%.

CLOSING UPDATE: Maruti Suzuki India down 3.1% in 2 days

21 May 2018 20:18 IST

Maruti Suzuki India, India's largest cars & utility vehicles company by market capitalisation, extended its slide on Monday, shedding an additional Rs82.45 (or 1.0%) to trade at Rs8,428.50. Trading volume was 1.7 times average at the end of the day. The shares have fallen Rs269.0 (or 3.1%) over the past two trading days vs. the BSE SENSEX Index which has fallen 1.5% in the same period.

Maruti Suzuki India Limited (NSE:MARUTI; BSE:MARUTI; NS:MARUTI; IN:MARUTI)

ISIN: INE585B01010

PermID: 4295872801

Source: www.BuySellSignals.com