Motherson Sumi share price: Buy Motherson Sumi Systems, target price Rs 300: Emkay Global

Emkay Global has buy call on Systems with a target price of Rs 300. The current market price of Motherson Sumi Systems is Rs 241.15. Time period given by analyst is one year when Motherson Sumi Systems Ltd. price can reach defined target.

Motherson Sumi Systems Ltd., incorporated in the year 1986, is a Large Cap company (having a market cap of Rs 77306.23 Crore) operating in Auto Ancillaries sector.

Motherson Sumi Systems Ltd. key Products/Revenue Segments include Auto Electricals, Sale of services, Traded Goods, Scrap, Other Operating Revenue, Export Incentives and Job Work for the year ending 31-Mar-2021.


For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 14163.53 Crore, down -13.17 % from last quarter Total Income of Rs 16312.13 Crore and down -5.66 % from last year same quarter Total Income of Rs 15012.49 Crore. Company reported net profit after tax of Rs 210.12 Crore in latest quarter.

Investment Rationale
The brokerage retains Buy with a TP of Rs 300 (23x Dec’23E EPS). It expects robust growth prospects for MSS in the medium term, driven by expectations of a cyclical upturn in the underlying Auto segment in domestic/global markets and increasing content per vehicle due to premiumization/electrification. In addition, the proposed restructuring exercise creates a platform for future growth through inorganic and organic routes. This restructuring exercise is a step toward the company’s Vision 2025 – revenue target of USD36bn with ROCE of 40%.

Promoter/FII Holdings
Promoters held 61.73 per cent stake in the company as of 30-Sep-2021, while FIIs owned 16.4 per cent, DIIs 13.64 per cent.

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