Check out: Sharmila Joshi's top midcap ideas

11876 Investors following Bharat Forge. Share this News with them.

0

Like this story, share it with millions of investors on M3

Check out: Sharmila Joshi's top midcap ideas

Sharmila Joshi, Co- Head PCG Sales, Emkay Global Financial Services is bullish on Motherson Sumi, Blue Star, Coromandel International and Mcnally Bharat Engineering.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Angel Broking's top midcap ideas to power your portfolio Banking sector: Experts give outlook and picks ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets

Sharmila Joshi, Co- Head PCG Sales, Emkay Global Financial Services is bullish on Motherson Sumi , Blue Star , Coromandel International and Mcnally Bharat Engineering .

Here is a verbatim transcript of the exclusive interview with Sharmila Joshi on CNBC-TV18. Also watch the accompanying video.

Q: What kind of targets would you trade Motherson Sumi Systems with?

A: The story here is two fold. One is that it's a tier one auto ancillary supplier in the likes of Bharat Forge or Bosch and trading at a significant discount to its peers. So, first story over there is completely that its valuation should move inline with the valuation of its peer set.

The second story is that here we have a company which over the past 15 years has given earnings per shares (EPS) and sales compound annual growth rate (CAGR) of over 30% with no equity dilution. They have done a lot of acquisitions almost seven since 2005, all of them are contributing positively. Their latest acquisition, which was SMR in Europe, has changed their business mix completely; there were a wire harnessing company, now they are addressing a big market of rear-view mirrors. So in the wire harnessing, they have about 65% of the domestic market, rear-view mirror is about 48% and globally 25% of the rear-view market.

So with the kind of domestic growth that we have seen in the auto industry as well as demand for auto stabilising or growing globally that could be the real kicker for Motherson Sumi because SMR already has orders worth 700 million euro to be executed over the next six-seven years starting 2011 and that could change a lot of things for Motherson Sumi going ahead. So this is a stock that we like and we have given this a target of Rs 185.

Disclosure: I personally own Blue Star, other than that ofcourse as I said we have recommendations on all the four stocks.