Motherson Sumi shares down 5%, CLSA retains outperform call

Motherson Sumi Systems share price was down over 5 percent on October 12 even after CLSA maintained outperform call on the stock.

The global research firm has retained its outperform call on the stock and has also raised target to Rs 130 from Rs 120 per share. The firm is of the view that SAMIL’s businesses could scale up post merger with Motherson Sumi, according to a CNBC-TV18 report.

Motherson Sumi Systems says that 80 percent of SAMIL’s businesses are consistent dividend payers. CLSA feels that SAMIL business can sustain future growth through internal accruals.

The stock was trading at Rs 114.80, down Rs 6.25, or 5.16 percent at 11:23 hours. It has touched an intraday high of Rs 122.20 and an intraday low of Rs 114.65.

According to Moneycontrol SWOT Analysis powered by Trendlyne, MFs decreased their shareholding last quarter with the recent results indicating declining operating profit margin and net profits (YoY).

However, Moneycontrol technical rating is bullish with moving averages and technical indicators being neutral.