Motherson Sumi Systems Ltd's rating outlook revised to Stable from Negative by Moody's

Moody's Investors Service ("Moody's") today, has revised the company's rating outlook to 'Stable' from 'Negative' while affirming the Ba1 corporate family rating to Motherson Sumi Systems.

The improved outlook with the affirmed rating reflects the sustainability of earnings and de-leveraging witnessed in the last two quarters despite growth challenges due to the global pandemic. The company's 3CX10 strategy has helped diversify revenue and customer dependence making the underlying business more resilient. In addition, the turnaround witnessed in the company's loss making green-field facilities have also contributed to the improvement in earnings in recent quarters.

The proposed re-organisation of the group, will incrementally boost cash flows and strengthen the quality of earnings further and thus outweigh the minor increase in leverage.

Shares of MOTHERSON SUMI SYSTEMS LTD. was last trading in BSE at Rs.200.55 as compared to the previous close of Rs. 212. The total number of shares traded during the day was 1077418 in over 17431 trades.

The stock hit an intraday high of Rs. 207 and intraday low of 195.7. The net turnover during the day was Rs. 215590588.

Source : Equity Bulls

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