Motherson Sumi has completed two acquisitions.
- Entered aerospace industry via 55% stake acquisition in Bengaluru based CIM Tools, engaged in machining, treatment, sub-assembly, testing of detailed aircraft parts. The transaction values CIM group at ~7.5-8x FY20 EV/EBITDA. It generated revenues of Rs. 129 crore in FY21 (Rs. 203 crore in FY20) and has orderbook of >Rs. 1,500 crore, executable over next five years
- The company's SMR subsidiary via its 50:50 JV Ningbo SMR Huaxiang Automotive Mirrors acquired 60% stake in China based Nanchang JMCG Mekra Lang Vehicle Mirror Co. The latter is a maker of mirrors for PVs, pickup trucks and light and heavy CVs in China (~6.5% market share). The acquisition has been done at 0.4x CY20 P/S (revenues of CNY 131 million i.e. ~Rs. 150 crore). This entity is supplying to OEMs like Ford and Isuzu
Key triggers for future price performance
- We build 13.5% FY21-23E net sales CAGR; margins at 10.9% by FY23E
- Well poised to clock 20% RoCE by FY23E
For details, click on the link below: Link to the report
Shares of Motherson Sumi Systems Limited was last trading in BSE at Rs. 245.15 as compared to the previous close of Rs. 240.70. The total number of shares traded during the day was 709983 in over 14944 trades.
The stock hit an intraday high of Rs. 245.75 and intraday low of 239.60. The net turnover during the day was Rs. 172526618.00.