Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now

You can switch off notifications anytime using browser settings.
Stock Analysis, IPO, Mutual Funds, Bonds & More

Nomura maintains buy on Motherson Sumi, raises target price to Rs 158

Buy Motherson Sumi Systems Ltd. at a price target of Rs 158.0 .

Updated: Nov 13, 2019, 08.36 AM IST
ThinkStock Photos
Nomura has maintained buy rating on Motherson Sumi Systems in the long term and raised target price to Rs 158 from Rs 131. Shares of Motherson Sumi Systems ended up 4.1% at Rs 134.6 on Monday while BSE sensex closed 21.47 points up to 40,345.08.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 15708.99 crore, down -5.12% from last quarter sales of Rs 16557.33 crore and up 5.76% from last year same quarter sales of Rs 14853.55 crore. The company has reported net profit after tax of Rs 434.16 crore in the latest quarter.

Investment Rationale

The company's capital expenditure cycle is largely over in FY19 and healthy free cash flow is expected in FY20 and FY21, the brokerage said. Motherson Sumi is a play on strong volume growth expected in India's passenger vehicle industry and rising content per car, said Nomura. Globally, rising polymer usage and advanced mirror technology should continue to drive new order wins, said Nomura. New global commercial vehicle wiring harness opportunity with PKC's acquisition aids growth visibility, it said.

Also Read

Affle India has potential upside of 28%: Nomura

Bajaj Finance enlists JM Financial, Nomura for QIP

Nomura downgrades HDFC Life to neutral, target price Rs 600

Nomura downgrades Cummins India to ‘reduce’

Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Disclaimer: This recommendation is analyst's own and does not represent those of & Please consult your financial advisor before taking any position in the stock/s mentioned.

Other useful Links

Follow us on

Download et app

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service