The 28 reports from 6 analysts offering long term price targets
for Motherson Sumi Systems Ltd. have an average target of 153.67. The consensus estimate
represents a downside of -1.65%
from the last price of 156.25.
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)'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)....
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...
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...
MSS Q1FY21 consolidated performance missed expectations led by lower utilization impacting operating leverage. The company disclosed weaker than expected margins in key business such as SMP -8.3% (PLe -4%), SMR -2.8% (PLe +2%), PKC -4% (PLe +3%) and S/A at -26% (PLe 3%). However, from...
MSSL would acquire & merge promoter group (SAMIL) into itself against earlier proposal to buy out SAMIL's 49% stake in SMRP BV. Effectively, this would consolidate all the group's automotive businesses (ex-DWS) as well as other supporting businesses under the umbrella of the listed entity i.e. MSSL. MSSL would issue ~136 crore new shares, diluting equity share base by ~43% to 452 crore shares from present 316 crore shares. This would be an effective equity acquisition value of ~| 8,300 crore and an EV valuation of ~| 9,400 crore (net debt at SAMIL at ~| 1,100 crore) for an incremental...
Believe reorganization is a long term positive for MSS. MSS board approved the proposed demerger of domestic wiring harness (DWH 57.4%/6.2% of Standalone/Consol revenues), that will be listed with mirror shareholding (likely by July-21). The board also approved merger of...
The Board of Directors of MSS granted in-principle approval for the re- The demerger of the Domestic Wiring Harness (DWH) business of MSS into a new company that shall have mirror shareholding as MSS and shall be listed. This merged entity would be renamed Samvardhana Motherson International Ltd The demerger of the India Wiring Harness business would not include the 50% JV with Kyungshin Industrial Motherson, which manufactures wiring Effectively, the current listed entity (MSS) would be left with the global businesses (100% of SMRPBV and PKC) and remaining India business, including the JVs. The India Wiring Harness (DWH) business would be focused on the India business, as desired by Sumitomo. Post the merger of SAMIL, the shareholding of the promoters would increase to 68.15% from 61.73% currently, with the Sehgal family controlling 50.4% and Sumitomo Wiring System owning 17.7%. Adjusted for its 33.43% stake in the listed entity (~INR129b at our fair value) and 49% stake in SMRPBV (~INR55b at 15x Jun22 EPS), the implied core business valuation works out to ~INR60b.
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...
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...
MSSL reported decent Q4FY20 performance. Standalone revenues (largely includes Indian operations) came in at | 1,735 crore (down 6% YoY), while EBITDA margins stood at 17%, up 200 QoQ on the back of savings realized in raw material costs. Consequent standalone PAT stood at | 386 crore, supported by higher other income (dividend from subsidiaries). On consolidated basis, top line in Q4FY20 came in at | 15,159 crore (down 12% YoY), while EBITDA margins stood at 9.2%, up 130 bps QoQ. Expansion in margins can be largely attributed to 130 bps gross margin expansion....
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...
Swift resumption of production in China is an encouraging development. Relatively quick recovery of plants in Europe, India and the Americas would be key for MSSL given importance of healthy capacity utilisation amid relatively large outgo on employee costs, interest and depreciation. We...
total 27. Whereas other key markets like US, South America and UK hasn't seen any shutdowns so-far. We believe, significant correction presents an opportunity to buy this stock at an attractive valuation at 11x FY21 estimates. We upgrade the stock to BUY (from Accumulate) with lowered fair value to Rs115 (from Rs153) led by earning cuts and lower 16x multiple (from 18x) to...
