Result Update: Motherson Sumi Systems Limited - REDUCE - TP Rs. 439 - Kotak

MSSL's 4QFY17 revenues and PAT came in ahead of expectation. MSSL reported robust revenue growth in India and overseas operations. EBITDA margin at key subsidiaries improved during the quarter. We remain optimistic on MSSL's standalone business growth on account of healthy growth outlook for the passenger car industry and increasing wiring harness content in vehicles. At foreign subsidiaries, strong order book and ramp-up at recently started multiple new plants will drive revenue growth and margin expansion During the quarter company completed PKC Group acquisition and that will be a key growth driver for the company in coming years. We upgrade the stock to REDUCE (earlier SELL) with revised price target of Rs439 (earlier Rs297). We increase our FY18 estimates as we incorporate PKC's financials in the consolidated numbers. We also introduce FY19 estimates and roll-over our target price onFY19 expected earnings.

Shares of MOTHERSON SUMI SYSTEMS LTD. was last trading in BSE at Rs.447 as compared to the previous close of Rs. 431.75. The total number of shares traded during the day was 146180 in over 2840 trades.

The stock hit an intraday high of Rs. 451.5 and intraday low of 430.1. The net turnover during the day was Rs. 64897353.

Source : Equity Bulls

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