Geojit Financial Services' research report on Motherson Sumi Systems
Q4FY17 consolidated revenues registered a strong growth of 14.5%YoY driven by healthy growth of 19%/21%/15% YoY witnessed in standalone/SMP/SMR business. India business registered strong growth driven by rising content per vehicle & new model launches. Likewise, SMP business witnessed robust traction in revenue growth as USD2.2bn Daimler order is being ramped-up.
Outlook
We factor in a) 9.5% revenue CAGR for PKC over FY17-19E & b) 80bps expansion in EBITDA margin during the period under review. Given its diversified offerings, leadership position, strong order book & the acquisition impact of PKC, we expect revenue/PAT to grow at a CAGR of 21.5%/30.4% over FY17-19E. Maintain ‘BUY’ with a revised TP of Rs 495 (earlier Rs 396) based on 25x FY19E PE.
For all recommendations, 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
