Firstcall Research's report on Motherson Sumi Systems
The consolidated net profit stood at Rs. 2524.10 million against Rs. 2496.00 million in the corresponding quarter ending of previous year, an increase of 1.13%. Net sales for the quarter were stands up by 14.53% to Rs. 91493.60 million from Rs. 79886.70 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 2.86 a share during the quarter, registering at 1.13% increase over previous year period. EBITDA is Rs. 8336.80 million as against Rs. 7980.50 million in the corresponding period of the previous year.
Outlook and Conclusion
At the current market price of Rs.467.80, the stock P/E ratio is at 52.11 x FY15E and 45.19 x FY16E respectively.
Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.8.98 and Rs.10.35 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 15% and 42% over 2013 to 2016E respectively.
On the basis of EV/EBITDA, the stock trades at 14.37 x for FY15E and 14.20 x for FY16E.
"Price to Book Value of the stock is expected to be at 11.03 x and 8.86 x respectively for FY15E and FY16E. The strong revenue growth, improved operational performance coupled with prudent financial management has resulted in the company consistently outperforming the market. As the global markets are also picking up, we expect the company to keep on delivering exceptional performance in future. Hence, we recommend ‘BUY’ in this particular scrip with a target price of Rs 530 for Medium to Long term investment", says Firstcall Research Report.
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