Samvardhana Motherson International Ltd. share price target

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...

MSSL, through its step down subsidiary Samvardhana Motherson Automotive Systems Group B.V. (SMRP BV), announced the proposed acquisition of Reydel Automotive Group (Reydel), a privately held portfolio company of Cerberus Capital Management, L.P. (Cerberus) for a purchase price of $201mn. In our view, this deal helps MSSL move a step forward towards achieving its vision 2020 revenue target of $18bn, further scale its interiors business and opens up new markets. Prima facie, the transaction valuation of 2x EV/EBITDA looks attractive for a company with 25% RoCE, net cash and positive free cash generation. Since our previous update, the...

SMRPBV has proposed to acquire a 100% stake in Reydel Automotive forUSD201m. This acquisition is structured under a Lockbox arrangement with effect from 1st January 2017. This stake would be bought from Cerberus Capital, a private equity player. Reydel was carved out from Viste on and acquired by Cerberus in 2014. Acquisition price of equity valued at USD201m implies EV/EBITDA of 2x CY17. Reydel is a global supplier of instrument panels, door panels, console modules,decorative parts and cockpit modules, with presence across the EU, South America and Asia. It has 20 manufacturing facilities, with presence across 16 countries and ~5,650 employees.

Motherson Sumi Systems: IT is a multinational & diversified auto ancillary with market leading products Sterlite Technologies: Sterlite Technologies Ltd (STL) is among the global leaders in optical communication products, Enhancing capacity, entering new segments