ICICI Direct's research report on Motherson Sumi
Motherson Sumi Systems (MSSL) reported a healthy operational performance in Q4FY21. The key highlight was sustained profitability at its overseas operations: SMR (EBITDA margins at 12.9%) & SMP (EBITDA margins at 8.7%). Consolidated revenues (including DWH) in Q4FY21 were at Rs 18,482 crore, up 22% YoY. EBITDA on a consolidated basis were at Rs 1,959 crore with EBITDA margins at 10.6%, down 20 bps QoQ. Consolidated PAT for Q4FY21 was at Rs 714 crore vs. Rs 183 crore in Q4FY20.
Outlook
With healthy order book positioning as well robust capital efficiency in offing, we upgrade MSSL from HOLD to BUY, valuing it at Rs 300 (30x P/E on FY23E earlier TP Rs 225).
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