Samvardhana Motherson International Ltd. share price target

revenue grew 12.6% YoY to INR151b (in-line), driven by PKC (+21% YoY) and S/A business (+7.5% YoY). SMRs revenue was flat in EUR terms. SMPs like-to- like revenue was flat in EUR terms, reflecting the impact of WLTP in Germany. Reydel (SMRC) is consolidated for two months and is part of SMP. of (a) ~200bp YoY/QoQ contraction in SMP margin due to negative operating leverage and Reydel merger, and (b) 70bp QoQ contraction in PKC margins. FY19 revenue/PAT to grow 15%/9%, implying residual growth of 17.5%/16% in 2HFY19. (a) SMPs start-up cost will go away from Jan-19. (b) New plants will take four quarters to ramp-up (in line with OEMs ramp-up) expect USD1b revenue potential of the three new plants to reflect from 2HFY20. (c) Order book stood at EUR19.5b (incl. ~EUR2b order book of Reydel), which will be taken up for execution over two years; normal life of orders is ~5 years.

ICICI Securities Ltd | Retail Equity Research Motherson Sumi's (MSL) consolidated revenues were at | 15,105 crore (up 12.5% YoY) vs. our estimate of | 14,654 crore. MSL has integrated Reydel (SMRC) business for two months with its polymer business while results are as per new accounting standard Ind-As 115'. Thus, results are not comparable. Revenues from standalone business grew 7.6% YoY to | 1,950 crore. Among its subsidiaries, SMR revenue grew 0.5% YoY to 380 million while SMP revenue...

ICICI Securities Ltd | Retail Equity Research Motherson Sumi System (MSL) made an announcement on bonus shares on September 7, 2018. The ratio was one bonus share for every two existing equity share i.e. 1:2. The record date for the same is October 31, 2018 while the ex-date for the same is today i.e. October 30, 2018. Consequently, MMF's share price, as per yesterday's closing price, has dropped to | 152.1/share from | 228.5/share. Demand concerns limit valuation upside...

Revenue fell by 4.7% to Rs. 14562.98 Cr in Q1FY19 when compared to the previous quarter. Motherson Sumi Systems Ltd Q1FY19 results Comment

ICICI Securities Ltd | Retail Equity Research Motherson Sumi's (MSL) consolidated revenues came in at | 14,775 crore (up 12.5% YoY), below our estimate of | 15,825 crore. The Q1FY19 results are as per new accounting standard Ind-As 115'. Thus, results are not comparable. The impact of new norms mainly lowered revenue of SMP (~| 1318 crore) & standalone (~| 90 crore). Thus, adjusted revenues grew 24% YoY to | 16,106 crore Net sales from standalone business grew 16.5% YoY to | 2,004...

Consolidated sales grew by robust 36.9% YoY supported by strong performance of India (22% YoY) & SMP operations (10.5% YoY in Eur terms) and contribution from PKC acquisition (not there in Q4FY17). However, SMR witnessed 3.3% decline (in Eur terms) in revenue due to forex impact (strong Eur) and lower volumes at Hyundai and Kia. Growth in standalone business was...

ICICI Securities Ltd | Retail Equity Research Motherson Sumi's (MSL) consolidated revenues were at | 15,408 crore (up 36.5% YoY) vs. our estimate of | 15,557 crore. The result is not comparable on a like-to-like basis, as it includes the performance of newly acquired PKC group that reported revenue of 275 million (~| 2,174 crore). Hence, adjusted PAT grew 17.3% YoY Net sales from the standalone business were up 22.3% YoY to | 2,068 crore. Further, among its subsidiaries, SMR's revenue (in...

revenue grew 37% YoY to INR154b (est. of INR161.6b), as healthy growth in SMP (+10.5% YoY), PKC (+29% YoY) and S/A business (+22% YoY) offset the weakness in SMR (-3% YoY). While SMP growth was led by ramp-up of new plants and PKC sales were driven by commercialization of a third JV in China, SMR sales were hurt by weak volumes at Hyundai Group and a strong EUR. margin shrank 130bp YoY (+10bp QoQ) to 9.7% (est. of 9.1%), primarily led by a lag in RM pass-through and start-up costs for a new plant. Margins expanded at SMP (+100bp QoQ, -30bp YoY to 6.7%), SMR (+190bp QoQ, +100bp YoY to 13.1%) and standalone (+240bp QoQ, -90bp YoY to 18.5%).

Motherson Sumi Systems (MSS) has announced another prudent deal the EPSaccretive acquisition of Reydel group. This acquisition is yet another step towards meeting the company's 2020 revenue (of US$18bn) and diversification (3CX15) targets. The acquisition price of US$201mn implies a valuation of 0.1x EV/Sales and 2x EV/EBITDA, based on CY17 financials. It has ROCE of ~25%. It supplies cockpit modules,...

Motherson Sumi (MSL) subsidiary SMR PBV has executed the transaction documents for the proposed acquisition of Reydel Automotive (RA), which is a global supplier of instrument panels, door panels, console modules, decorative parts and cockpit modules, with a presence across Europe (account for 66% of revenue), Asia (28% of revenue) and South America (balance 5% revenue) Aggregate purchase price is $201 million for a 100% stake in RA while the transaction will take four to six months to close. Further, the...