Samvardhana Motherson International Ltd. share price target

We build ~81% PAT CAGR for MSSL in FY21E-23E (albeit on low base). We note the smart upswing in SMP greenfield performance and remain excited about the company's larger picture focus on (i) increased content per car & (ii) profitable growth. However, with large part of vision 2025 at MSSL involving big ticket acquisition that has an element of uncertainty, we retain...

Motherson Sumi Systems (MSS) reported robust Q3FY21 operational performance with 260bps YoY improvement in EBITDA margin to 10.8%

MSS 3QFY21 results were better with sharp beat at EBITDA/PBT by 14%/42%. led by sustained improvement in SMP's greenfield plants and continued cost reduction in all global business. EBITDA grew 61% YoY to Rs17.9b (PLe Rs15.7b) with 14 quarter high margins at 10.5% (+310bp YoY, PLe 9.6%). Execution of a strong order book and limited capex at SMPBV as well as India...

Domestic auto industry volumes have been on a steady mend in the months post lifting of lockdown restrictions. Manufacturing and distribution activities have been getting ramped up gradually since June 2020, in step with the rest of the economy. However, the impact of the pandemic on the supply chain continues to inhibit a complete return to production normalcy. Nevertheless, most automotive industry segments have reported successive improvement in offtake throughout June-November 2020 (Exhibit 1) on the back of (i) initial bounce provided by pent-up aspect,...

MSS hosted a virtual investor meet (Link for PPT) outlining key strategies to Change in Estimates | Target | Reco achieve for their vision 2025 targets. These include 1) Consol revenues at USD36bn 2) 3CX10 (no country/component/customer contribute >10% in...

Motherson Sumi (MSS) has embarked on its next five-year plan - 'Vision 2025' with an ambitious (USD36b/40%) revenue/RoCE target, and additional focus on diversifying into new industries (25% contribution by FY25). [Click here for presentations of Day 1 and Day 2]. Vision 2025 focuses on expanding into nascent geographies, new technologies in current products and addressing the broader mobility space (beyond PVs). While organic growth would be broadly driven by content increase through new technologies and expansion into new markets and segments, inorganic growth would play an important part in attaining its strategic objectives in the Auto...

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 aut o ancillary in India and among...

Motherson Sumi (MSS) reported strong operational performance, with EBITDA margin showing 100 bps improvement yoy to 9.3% in Q2FY21.

Motherson Sumi (MSS)'s 2QFY21 operating performance was driven by strong demand recovery and improved efficiencies. SMP's greenfield plants achieved EBITDA breakeven. MSS is well-positioned to benefit from demand recovery as well as efficiency improvement at the greenfield plants. We upgrade our FY22E EPS by 7%, factoring in stronger recovery in SMRPBV and PKC. MSS is our preferred bet to play global recovery in Auto. Maintain Buy, with TP of INR150 (Dec'22 SOTP)....