SUZUKI MOTOR CORPORATION
Raunak Onkar, fund manager and head of research, PPFAS
The parent company of India's Maruti Suzuki limited, derives around 56% of its profits from the Indian operations. Also, it earns royalty from the Indian company for technology sharing and dividends as a majority shareholder. Suzuki (parent) also has an emerging, global 2-wheeler business along with several assets owned around the world which helps the entire group's operations. Anticipating the new wave of electric mobility, the parent company has also partnered with many leading EV technology providers which can help propel the fortunes of even its Indian subsidiary. As a holding company it is available at a discount to the value of its underlying listed subsidiary and becomes a better way of accessing the same demand drivers for vehicles in the emerging markets of Asia and across the world.
Morningstar Quantitative Ratings
Morningstar Quantitative ratings for equities are generated using an algorithm that compares companies that are not under analyst coverage to peer companies that do receive analyst-driven ratings. Companies with ratings are not formally covered by a Morningstar analyst, but are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative moat, fair value, and uncertainty rating.
- Economic Moat: None
- Economic Moat Trend: None
- Fair Value: $51.57
- Fair Value Uncertainty: Very High
- Stewardship Rating: None
Suzuki Motor Corp is a Japanese automobile manufacturing company that organises itself into segments based on product type:
- Automotive Business contributes the vast majority of revenue and largely focuses on passenger vehicles.
- Manufactures on- and off-road motorcycles and scooters and contributes the next- largest portion of sales.
- The Marine business manufactures 4-stroke motors for marine use.
