Buy Motherson Sumi; target of Rs 403: Axis Direct

Axis Direct is bullish on Motherson Sumi has recommended buy rating on the stock with a target price of Rs 403 in its research report dated December 06 2017.

January 08, 2018 / 13:50 IST

live

bselive
nselive

Volume

Todays L/H

Axis Direct's research report on Motherson Sumi

In its Vision 2020 update meeting, the management of Motherson Sumi (MSS) highlighted that it is on course to achieve its ambitious 2020 revenue target of USD 18 bn (vs. USD 8 bn currently) and RoCE of 40% (~28% currently); in fact, it could meet 2020 target a year earlier. Moreover, it is foraying into the non-auto space (medical, defense, aerospace, security systems) which can drive growth beyond FY20. MSS remains one of our preferred picks among Auto ancillaries. The India business is a good play on India PVs due to rising premiumization and electronics, more so going into BS-VI emission norms. Overseas subsidiaries have strong growth avenues with new technologies and product/customer synergies from acquisitions. Reiterate BUY with TP of Rs 403 (27x FY19E P/E).

Outlook

This bode well for pricing power and is also a catalyst for growth. Reiterate BUY with unchanged TP of Rs 403 (27x FY19E P/E; 10% premium to 5 year average).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.