Shares of Motherson Sumi Systems fell nearly 10 percent intraday on August 13 after the company reported dismal numbers for the quarter ended June 2019.
The company’s Q1FY20 consolidated net profit was down 25.2 percent at Rs 331.5 crore versus Rs 443.1 crore in a year-ago period.
Revenue of the company was up 13.7 percent at Rs 16,792.5 crore versus Rs 14,775.5 crore.
Earnings before interest, tax, depreciation and amortization (EBITDA) was down 11 percent at Rs 1,255 crore against Rs 1,412 crore, while margin was down 210 bps at 7.5 percent against 9.6 percent.
Nomura has maintained buy rating on Motherson Sumi with a target at Rs 156 per share.
According to Nomura, the company’s consolidated results were largely in-line with estimates, while demand outlook for global luxury and domestic PV are a concern.
The US Class 8 truck industry is also likely to enter a sharp downturn in FY21.
The new order wins and ramp-up in SMP revenue and margin are the key points to monitor, it added.
Credit Suisse has maintained outperform call with a target at Rs 180 per share.
The company first quarter is operationally in-line. The higher-than-expected interest cost & tax rate led to a 15 percent miss in net income, it added.
At 1410 hrs, Motherson Sumi Systems was quoting at Rs 97.70, down Rs 9.10, or 8.52 percent on the BSE.
The share touched its 52-week high of Rs 212.10 and its 52-week low of Rs 91.20 on 21 August 2018 and 8 August 2019, respectively.
Currently, it is trading 53.87 percent below its 52-week high and 7.29 percent above its 52-week low.Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.
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