Samvardhana Motherson International Ltd. share price target

Revenue rose by 4.95% to Rs. 10513.78 Cr in Q3FY17 when compared to the previous quarter. Also, it increased by 13.21% when compared with Q3FY16.

Valuation: We have increased revenue estimates for FY18 by 5.9% on account of revenue expected from plants commissioned in FY17. Also we have contracted EBITDA margins for same year, by ~39bps to factor in lower margins at SMP. However, we expect MSSL's revenue / earnings would grow at a CAGR of ~15% / ~32% over FY16-FY19e led by standalone business which is likely to benefit from demand pull from domestic OEM's particularly from PV segment, ongoing acquisition of wiring harness company for trucks, and plans to set up 9 new plants. We value the stock...

ICICI Securities Ltd | Retail Equity Research Motherson Sumi's (MSL) consolidated revenues came in at | 10,604 crore (up 12.3% YoY), vs. our estimate of | 10,787 crore. Revenue of the standalone business grew 21% YoY to | 1,497 crore (vs. estimate of | 1,386 crore). Revenue growth of its subsidiaries, SMR and SMP (in constant currency terms) came in at 15% YoY & 11% YoY to 407...

Motherson Sumi (MSL) has announced a tender offer to acquire Finland based PKC Group Plc. PKC is a Global Tier 1 supplier of wiring harness & associate component to OEMs in the M&HCV; and locomotive space in North America, Europe, Brazil & China. For CY16E, its revenue, margins were at 846 million (~| 6,100 crore) &...

Motherson Sumi (MSSL) is a pure play auto ancillary catering to Indian as well as global OEMs. Starting with wiring harness systems, MSSL has acquired and mastered businesses in several new domains globally. While standalone business will be a steady contributor to consolidated earnings, contribution from subsidiaries to increase on account of expansion in US/Europe/China, turnaround of loss making business, strong order wins and synergies with group companies.

Established in 1975, Motherson Sumi Systems Limited (MSSL), a JV between Samvardhana Motherson Group (36.9% stake) and Sumitomo Wiring Systems, Japan (25.6%), is India's biggest supplier of wiring harness and one of the largest manufacturers of rear view mirrors in the world. With a strong workforce of over 60,000 qualified professionals and 140 manufacturing units spread across 25 countries, MSSL caters to major global OEMs such as Volkswagen group, BMW, Daimler, Renault Nissan, Ford, Volvo, Maruti Suzuki, Tata Motors, Honda, Toyota etc. In terms of revenue mix as of FY16, of its standalone revenue, wiring harness accounts for...

ICICI Securities Ltd | Retail Equity Research Motherson Sumi's (MSL) consolidated revenues came in at | 10,137 crore (up 14.3% YoY), vs. our estimate of | 10,568 crore. Net sales from the standalone business (domestic) were up 14.6% YoY to | 1,557 crore (our estimate of | 1,598 crore). Revenue growth of its subsidiaries, SMR & SMP (in constant currency terms) came in at 16% YoY & 11% YoY to 375 million (our estimate: 369 million) & 681 million (our estimate of 693 million), respectively...

Motherson Sumi Systems Ltd. (MSSL) reported strong performance in Q2FY17 despite challenging global business environment. Its consolidated Rev/EBIDTA/adj PAT grew by 14.3%/10.7%/16.8% YoY and -3%/6%/14.0% QoQ to Rs 101.4bn/9.97bn/3.5bn (our estimate of Rs 105.7bn/9.5bn/3.3bn). Its EBIDTA margin grew 84 bps QoQ (down 32 bps YoY) to 9.8%, benefitted by lower commodity prices and healthy standalone performance. Revenues at SMR grew by 16.5% YoY and at SMP by 11.3% YoY in Euro terms, is commendable.

Motherson Sumi (MSSL) is a pure play auto ancillary catering to Indian as well as global OEMs. Starting with wiring harness systems, MSSL has acquired and mastered businesses in several new domains globally. While standalone business will be a steady contributor to consolidated earnings, contribution from subsidiaries to increase on account of expansion in US/Europe/China, turnaround of loss making business, strong order wins and synergies with group companies.

Motherson Sumi Systems Limited - MOTHERSUMI consolidated revenues grew 15.5% YoY to | 10,450 crore below our expectations of | 10,492 crore. Its domestic business grew 18.2% YoY to | 1,396 crore while constant currency revenue growth of its European subsidiaries SMR & SMP was at 7% YoY & 13% YoY to €374 million, €736 million, respectively • On a consolidated basis, EBITDA margins contracted 152 bps QoQ & 5 bps YoY to 8.9%. Standalone margins declined 185 bps QoQ to 18.8% while margins of SMR & SMP contracted 340 bps & 40 bps QoQ to 12.5% & 6.9%, respectively. We believe margin contraction was mainly after the company’s new/upcoming plant resulted into higher start-up cost. Reported PAT increased 65% YoY to | 439 crore.ICICI Securities Limited value MOTHERSUMI on an SOTP basis with a target price of | 325 (earlier | 260) & maintain HOLD rating on the stock.