Samvardhana Motherson International Ltd. share price target

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.

Background: 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...

Motherson Sumi Systems Ltd. (MSSL) reported mediocre performance in Q1FY17 amid overall challenging environment and headwinds in global business. It's consolidated Rev/EBIDTA/adj PAT grew by 15.5%/22%/17.1% YoY and 2.1%/-11.6%/-26.1% QoQ to Rs 104.5bn/9.4bn/3.1bn (our estimate of Rs 111.5bn/11.8bn/3.9bn). Its EBIDTA margin expanded 50 bps YoY (down 140 bps QoQ) to 9%, benefitted by lower commodity prices. Revenues at SMR grew by 6.6% YoY and at SMP by 12.9% YoY in Euro terms, is commendable. Its standalone revenue grew by 18.3% YoY (down 2.1% QoQ), on the back of strong PV sales and better traction from high end models. Lower operating margins at SMR pulled down overall EBIDTA margins QoQ in Q1FY17. SMR's EBIDTA margins expanded by 54 bps YoY (down 344 bps QoQ) to 9.1%. SMP's EBIDTA margins rose 79 bps YoY (down 32 bps QoQ) to 6.9%.Karvy maintain their positive view on MSSL and reiterate our BUY recommendation on the stock.

MSSL reported strong Q4FY16 results with consolidated/standalone YoY revenue growth of 8%/ 13.5% and PAT growth of 21.6%/ 74.4% respectively. It has achieved revenues of more than Rs.100bn in a...

ICICI Securities Ltd | Retail Equity Research Motherson Sumi's (MSL) revenues grew 8% YoY to | 10,235 crore but below our expectations of | 10,849 crore. Its domestic business...

Background: 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 FY16, the standalone entity contributed 14.2% of its revenues while the Mirror...

Background: 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 FY15, the standalone entity contributed 14% of its revenues while the Mirror...

For 2QFY2016, Motherson Sumi Systems Ltd (MSS)s results have come in ahead of estimates. The top-line grew strongly by 15% yoy led by robust growth in SMP and pick up in the standalone business. Given the healthy revenue growth and soft commodity prices, the adj net profit grew at a faster pace of 27% yoy. Top-line growth remains strong: MSS maintained its double digit top-line growth momentum, reporting sales of Rs9,198cr for 2QFY2016, implying a growth of 15%. The growth was led by SMP, whose revenues grew 18% yoy to Rs4,399cr, despite the depreciation in the Euro. Pick-up in order execution boosted growth. (In Euro terms SMP grew 31% yoy). Standalone revenues grew 10% yoy to Rs1,393cr led by recovery in the passenger vehicle industry. However, SMRs revenue growth moderated to 3% (at Rs2,424cr) impacted by the Euro depreciation. But in Euro terms, SMRs growth continued to remain strong growing by 14%. Operating leverage along with soft commodity prices boost profitability: Given the robust double digit top-line growth and soft commodity prices, MSS operating margins expanded 130bp yoy to reach 10.4%. Given the strong operating performance, MSS net profit grew strongly by 27% yoy to Rs289.3cr. Outlook and valuation: MSS...

Background: 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 FY15, the standalone entity contributed 14% of its revenues while the Mirror...