Moneycontrol PRO
HomeNewsBusinessStocksHold Motherson Sumi Systems; target of Rs 417: Edelweiss

Hold Motherson Sumi Systems; target of Rs 417: Edelweiss

Edelweiss recommended hold rating on Motherson Sumi Systems with a target price of Rs 417 in its research report dated May 23, 2017.

June 09, 2017 / 07:58 IST
     
     
    26 Aug, 2025 12:21
    Volume
    Todays L/H
    More

    Edelweiss' research report on Motherson Sumi Systems

    Motherson Sumi’s (MSS) Q4FY17 consolidated EBITDA, at INR 12.4bn (up 25% YoY), was in line with our and Street’s estimates. India business revenue outlook continues to improve led by increasing share of business from key clients and rising content. BS-VI transition in 2020 should aid wiring harness business.

    Outlook

    For SMR and SMP, we forecast revenue CAGR of 14% each and estimate consolidated EPS CAGR of 33% over FY17-19 with 26% RoE. We maintain ‘HOLD/SU’ with TP of INR 417 (India business 25x, SMR/SMP 15x FY19E PER). We have also valued PKC at INR 30 (0.7x EV/sales). At CMP, the stock trades at 21.4x FY19E PER.

    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.

    first published: May 24, 2017 05:44 pm

    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!

    Subscribe to Tech Newsletters

    • On Saturdays

      Find the best of Al News in one place, specially curated for you every weekend.

    • Daily-Weekdays

      Stay on top of the latest tech trends and biggest startup news.

    Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347