Motherson Sumi – Q2 FY20 (Unaudited – Cons.)
Share price – 78
Total revenue from operations at 15,924 Cr
15,105 Cr (5.42%) YoY | 16,793 Cr (-5.72%) QoQ
Half year revenue: 32,717 Cr Vs. 29,880 Cr (9.52%)
Net Profit of 457.82 Cr
495.48 Cr (-7.43%) YoY 360.64 (26.97%) QoQ
Half year ending Net Profit: 818 Cr Vs. 1,113 Cr (26.52%)
EPS (in Rs.) 1.22
1.18 YoY | 1.05 QoQ
Half Year ending EPS: 2.27 Vs. 2.58
View: Result is good despite negative automobile growth YoY topline increased and profit slightly decreased. QoQ bottomline also in good line. The company has also taken Tax reduction benefit in this quarter.
Business Highlights & Updates:
PKC Group delivers excellent performance with 12% growth in revenues and 73% growth in profit
Commendable performance by SMRP BV with 15% growth in revenues and 11% growth in EBITDA despite continued challenges in the recently setup greenfield plants
Robust Order book of Rs. 143,851 crores (Euro 18.4 billion) at SMRP BV level. New Orders worth Rs. 29,708 cr (Euro 3.8 billion) received H1 FY 19-20. Orders worth Rs. 28,926 cr (Euro 3.7 billion) executed during H1 FY 19-20.
EBITDA in Q2FY19 is around INR 1,355 Cr Vs. 1,290 in Q2FY19 therefore up by 4%.
ROE and ROCE is around 12% and 17% respectively and book value per share is around INR 20 and share is currently trading at 6.5x of its book value. company is currently trading at annualized PE of around 30 which is average as per Industry benchmark. Promoter holding in the company is around 61.7% which is strong and stable, FIIs and mutual fund hold around 14.9% and 11.4% in the company. The good thing is company consolidated debt is also stable and which is currently around 11.7K Cr.
Share price high 179 (52 week) and now 133. Motherson Sumi Systems Limited (MSSL) is one of the world’s leading specialised automotive component manufacturing companies for OEMs. The company has a presence in 41 countries across five continents. MSSL is currently the largest auto ancillary in India and among the Fab 50 companies of India by Forbes magazine. MSSL is the flagship company of the Motherson Group.
Based on the current negative growth of Automobile sector share price corrected heavily. Although in last 1 quarter share price recovered very well. Company has also presented good set of number despite negative / sluggish growth in the past 1 year in entire automobile sector.
Long term investor can hold at current level as once the automobile sector on revival path share should be gainer in long term. Short term is also good outlook.
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.
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