Samvardhana Motherson International Ltd. share price target

Motherson Sumi Systems Ltd (MSSL) is a JV between Samvardhana Motherson International (SMIL) and Sumitomo Wiring Systems, Japan (SWS). MSSL is a diversified auto parts maker with presence in automotive...

erstwhile SAMIL into MSSL at | 255/share on SOTP basis. Consequently, our target for individual entities i.e. DWH and new SAMIL (ex-DWH) is at | 70/share and | 185/share, respectively. Given the high RoCE profile (~40%) and exposure to pure play domestic PV wiring harness segment at DWH, we assign a premium valuation...

with a history of successful turnarounds in acquisitions and inorganic-led growth. Company Update: Announces timelines for executing the corporate restructuring Fixes January 17, 2022 as record date for determining shareholders for allocation of additional shares of domestic wiring harness division (DWH; Motherson Sumi Wiring India Ltd) in the entitlement ratio of 1:1 i.e. one...

Performance subdued amidst challenging working condition

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Background: Motherson Sumi Systems Limited (MSSL) is one of the world's leading, specialized automotive component manufacturing companies for OEMs. MSSL was established in 1986 as a joint venture with Sumitomo Wiring Systems. MSSL is a focused, dynamic and progressive company providing customers with innovative and value-added products, services and solutions. With a diverse global customer base of nearly all leading automobile manufacturers globally, the company has a presence in 36 countries across six continents. MSSL is currently the largest auto ancillary in India and among the Fab SO companies of India. MSSL...

but OEMs indicating improvement going forward; M&A pipeline very strong Motherson Sumi (MSS)'s 2QFY22 performance was impacted across businesses by the chip shortage, sharp copper price inflation, and nonrecurring expenses at PKC. However, the chip shortage seems to be easing. MSS is well-positioned to benefit from cyclical recovery in its key businesses as well as from a strong order book and improving efficiencies in SMRPBV. We cut our FY22E EPS estimates by 7%, factoring in the semiconductor shortage as well as higher tax, but maintain our FY23 estimates. We...

Entered aerospace industry via 55% stake acquisition in Bengaluru based CIM Tools, engaged in machining, treatment, sub-assembly, testing of detailed aircraft parts. The transaction values CIM group at ~7.5-8x FY20 EV/EBITDA. It generated revenues of | 129 crore in FY21 (| 203 crore in...

Q1FY22 Performance was negatively impacted in due to Covid second wave, supply constrains related to semiconductors and rising RM prices. Company's margins were impacted due to one-time cost of around Euro 15...

Sharp revival expected as supply situation eases