The company is a frontline automobile ancillary and has strong presence in the US. This development, hence, comes as a positive outcome for the stock.
Shares of Motherson Sumi soared over 6 percent on Monday morning as investors cheered the development of China agreeing to cut tariffs on cars coming in from US.
The company is a frontline automobile ancillary and has strong presence in the US. This development, hence, comes as a positive outcome for the stock.
The stock touched an intraday high of Rs 166.00 and an intraday low of Rs 154.65.China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.
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Further, CLSA maintained an outperform rating on Motherson Sumi, but cut its target to Rs 180 from Rs 223.
It noted that Indian business is in a soft patch, but the overall outlook is still positive.
The weak European demand is hurting the company, but new plant ramp-up will offer a cushion.
It has reduced FY19-21 EPS estimates by 7-14 percent and sees further downside to consensus estimates.
At 10:36 hrs Motherson Sumi Systems was quoting at Rs 165.90, up Rs 10.25, or 6.59 percent, on the BSE.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
