Motilal Oswal 's research report on Motherson Sumi
Motherson Sumi (MSS)’s 1QFY21 operating performance beat was driven by lower losses in global businesses. SMP’s greenfield plant progression toward breakeven continues despite the COVID-19 impact as losses reduce on a QoQ basis. MSS is well-positioned to come out of the crisis stronger, driven by its robust order book, for which it is already fully invested. MSS is our preferred bet on global recovery in Auto. Maintain Buy, with TP of INR135 (Sep’22 SOTP).
Outlook
Our positive view on MSS remains intact (stabilization of greenfield plants + execution of SMRPBV’s strong order book + India recovery). Maintain Buy, with TP of INR135 (Sep’22 SOTP).
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