Buy Motherson Sumi Systems; target of Rs 116: Prabhudas Lilladher
Prabhudas Lilladher is bullish on Motherson Sumi Systems has recommended buy rating on the stock with a target price of Rs 116 in its research report dated July 03, 2020.
July 03, 2020 / 04:09 PM IST
Prabhudas Lilladher's research report on Motherson Sumi Systems
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 SAMIL (the principal holding co) into MSSL. This reorganization will now create two listed entities – (a) the India wiring harness business, and (b) global businesses and other India businesses. While we believe that it would at least take a year to be effective, in the long run separation of India/global business would increase focus in many inorganic opportunities too. This will also drive better value discovery for global businesses.
We maintain BUY with TP of Rs116 (unchanged at 18x consol EPS).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.