Motherson Sumi Systems - Good quarter but we moderate our exuberance a bit - Kotak

Motherson Sumi reported a strong quarter driven by 350 bps yoy improvement in standalone EBITDA margin and 140 bps qoq increase in SMR margin. Subdued performance of Peguform despite turning around four loss-making plants moderates our exuberance a bit. We believe the standalone business that forms 60% of consolidated EBITDA is the main driver of valuations and will continue to grow at a strong pace.

Maintain BUY with a TP of Rs235.

Source : Equity Bulls

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