Motherson Sumi Systems - Q4FY13 Result Review - Angel Broking

Motherson Sumi Systems (MSS) is scheduled to announce its 4QFY2013 results today. On a consolidated basis, we expect MSS to post a ~10% yoy increase in top-line to Rs. 7,095cr driven by a 24.1% yoy growth in Samvardhana Motherson Reflectec (SMR) revenues led by a steady ramp-up of the new plants. However, led by a slowdown in the domestic demand, standalone top-line is expected to register a decline of ~7% yoy. We expect Peguform to report a top-line of Rs. 3,518cr (up ~4% yoy) for the quarter. On the operating front, EBITDA margins are expected to expand by ~80bp yoy to 7.5% driven by improving utilization levels at SMR. Consequently, adjusted bottom-line (for foreign exchange gains) is expected to register a growth of ~41% yoy to Rs. 144cr.

At the CMP of Rs. 213, the stock is trading at 14.4x FY2015E earnings. Currently we have a Neutral rating on the stock.

Source : Equity Bulls

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