Hem Securities has given Buy recommendation for Motherson Sumi Systems with a target price of Rs. 263 in its research report issued on Sep 16, 2021
Hem Securities report on Motherson Sumi Systems
Motherson Sumi Systems Ltd Q1FY22 consolidated revenues came in at ₹16,157 Cr, up 93.5% YoY and down 4.8% QoQ. Operating Profit for Q1FY22 stood at ₹1,220 Cr, up 321% YoY and down 29% QoQ. Operating margins for Q1FY22 came at 7.55% as compared to 10.15% in Q4FY21 and -6.6% in Q1FY21. PAT for Q1FY22 stood at ₹290 Cr, down 59.38% QoQ and PAT for Q1FY21 was -₹810 Cr.
We initiate a “BUY” rating on the stock and value the stock at 20x FY23E earnings to arrive at the target of ₹263.