Buy Motherson Sumi; target of Rs 423: Motilal Oswal

Motilal Oswal is bullish on Motherson Sumi has recommended buy rating on the stock with a target price of Rs 423 in its research report dated May 23, 2018.

Broker Research

May 25, 2018 / 17:28 IST

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Motilal Oswal's research report on Motherson Sumi

Healthy growth in standalone, PKC, SMP drives consol. revenue: Consol. revenue grew 37% YoY to INR154b (est. of INR161.6b), as healthy growth in SMP (+10.5% YoY), PKC (+29% YoY) and S/A business (+22% YoY) offset the weakness in SMR (-3% YoY).

Outlook

We maintain FY19/20E EPS, as the easing impact of start-up cost (with the start of Hungary and other plants in 1Q/3Q) partially dilutes the impact of lower PKC margins. Stock trades at 26.4x/18.7x FY19E/20E consol. EPS. Maintain Buy with TP of INR423 (25x Mar'20 consol. EPS).

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Broker Research

first published: May 25, 2018 05:28 pm

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