Samvardhana Motherson International Ltd. share price target

Q3 was below estimates on weaker-than-expected EBITDA margin largely due to plant start-up costs. Standalone and SMR# revenue growth was below estimates, while SMP^ and PKC growth beat estimates. Consolidated EBITDA margin was a slight miss across operations, resulting in overall EBITDA miss of ~4%.

ICICI Securities Ltd | Retail Equity Research Motherson Sumi's (MSL) consolidated revenues came in at | 14,398 crore (up 35.8% YoY). The result is not comparable on a like-to-like basis, as it includes the performance of newly acquired PKC group, which reported revenue 271 million. Revenue from the standalone business was up 17.4% YoY to | 1,840 crore. Of its subsidiaries, SMR...

MSS has enviable track record of strong performance with unwavering focus on capital allocation. MSS has evolved as a partner of choice for all most all OEMs in the world, reflecting in increasing share of business and market leadership in all the key businesses that it operates in. It is in sweet spot to benefit from evolving disruptive global automotive trends, which would drive its next wave of growth. MSS is now entrenched in the virtuous cycle of "scale begets scale", as it would significantly benefit from OEMs focus on vendor consolidation. MSS has strong organic growth opportunities in international as well as domestic market driven by increase in content per vehicle, strong order book and entry in new markets/segment. We estimate MSS's consolidated revenues/EBITDA/PAT to grow 22%/30%/33.5% CAGR FY17-20E. Consequently, we expect RoCE (post-tax) to improve to 21.2% in FY20 (14.7% in FY17). We initiate coverage with buy rating and target price of INR458

In its Vision 2020 update meeting, the management of Motherson Sumi (MSS) highlighted that it is on course to achieve its ambitious 2020 revenue target of USD 18 bn (vs. USD 8 bn currently) and RoCE of 40% (~28% currently); in fact, it could meet 2020 target a year earlier.

We attended the Analyst Meet of Motherson Sumi Systems Ltd, where the management reiterated its confidence about achieving its 5-year revenue and profitability targets, probably before 2020. The company is evaluating large acquisition opportunities, which could help it to achieve the massive 2020 revenue target. Organic growth is expected to remain robust underpinned by: 1) market share gains and higher content/vehicle across segments, 2) healthy order book of EUR15bn in SMRPBV and 3) increased production, with 10 plants at different stages of completion. Diversifying revenue mix on the back of order wins from Daimler/others and acquisition of...

Motherson's (MSS) Q2 results were in line. Standalone revenue growth (17% YoY) was driven by rising content per vehicle. In EUR terms, SMR revenue growth was below estimate (1% YoY), while SMP^/PKC growth was strong (19% YoY).

ICICI Securities Ltd | Retail Equity Research Motherson Sumi's (MSL) consolidated revenues came in at | 13,431 crore (up 32.5% YoY), vs. our estimate of | 12,932 crore. The result is not comparable on a like-to-like basis, as it includes the performance of PKC group, which reported revenue 244 million (~| 1,820 crore) Revenue from standalone business grew 17% YoY to | 1,856 crore. Its subsidiaries, SMR & SMP revenue grew 1% YoY & 19% YoY to 378 million & 808 million, respectively, in constant currency terms...

Motherson Sumi Systems Ltd Q2FY18 results comment Revenue grew by 2.86% to Rs. 13338.21 Cr in Q2FY18 when compared to the previous quarter. Also, it increased by 33.14% when compared with Q2FY17.

Motherson Sumis (MSS) Q1 results were in line. Standalone revenue growth (+21% YoY) was driven by rising content per vehicle. In EUR terms, SMR# revenue growth was slightly below est (+7% YoY), while SMP^/PKC growth was strong (+16%/+15% YoY).