IDFC is Bullish on the Prospects of Motherson Sumi Systems and this is what they have written in the research report.
Motherson Sumi Systems (MSSL) offers a single window to play the emerging global trend of premiumisaton and high growth in China/ India PV industry. MSSL has an impressive track record of managing cost/ quality and synergy across businesses, as reflected in turnaround at Samvardhana Motherson Reflectec (SMR) and Samvardhana Motherson Peguform (SMP). Going forward, we see higher wallet share, premiumisation of PV industry and outperformance of luxury cars driving 16% revenue CAGR for MSSL over FY14-16E. Margin
expansion at SMP and SMR would drive earnings CAGR of 32%. We initiate coverage on MSSL with Outperformer and a 12-month price target of Rs274.
