Motherson Sumi Shares Surge Almost 9% on CLSA Maintains Buy Call:
Muthoot Finance: It is one of the largest auto ancillaries companies in India located in Noida. However, it is a joint venture between Samvardhana Motherson International Limited of India and Sumitomo Wiring Systems Limited of Japan. Initially, the company manufactured wiring harnesses for commercial vehicles. The company is one of the largest manufacturers of automotive parts, material handling, and equipment across India. The present Chairman of the company is Vivek Chaand Sehgal.
Meanwhile, on Monday, the shares of the company surged almost 7% in the stock market. The main reason for this is the global research firm, CLSA maintains buy call on the stock after its financial results 2021-22.
The research firm upgraded the stock to “Outperform” from the “Buy” call with a target price of Rs. 250 per equity share from Rs. 175 per share earlier. Besides, the research firm increased its EPS for FY22-23 by 21-29% on better margins.
Besides, the company reported stellar results in the December quarter. The companies consolidated net profit rose four times to Rs. 1,268.31 crores as against Rs. 340.32 crores in the same period last financial year. While the revenue from operations increased by almost 14% to Rs. 17,092.44 crores compared to Rs. 15,000.10 crores in the same period last year.
Moreover, the EBITDA of the company during the quarter increased by 60.70% to Rs. 1,795.50 crores from Rs. 1,117.10 crores last year. While the margins of the company expanded by 310 basis points (bps) to 10.50% from 7.40% YoY.
On the other side, the stock rallied almost 60% in the last three months. The company beat estimates in all parameters and reported the lowest debt compared to the previous 14 quarters.
On July 2nd, 2020, the company board approved the demerger of domestic wiring harness (DWH) from MSSL into a new company under the brand name Motherson Sumi Wiring India Limited (MSWIL). The merger of SAMIL into MSSL to consolidate 100% shareholding in Samvardhana Motherson Automotive Systems as well as to bring all auto component and allied businesses in Samvardhana Motherson International Ltd (SAMIL) under MSSL.
However, the shares of Motherson Sumi Systems Limited reported a bullish trend in the stock market on Monday. It gained 17.50 points with an 8.95% increase and reached 214.95 INR. While in BSE, the company gained 17.80 points with a 9.02% increase and reached 215.05 INR.
Stock Market on February 15th:
On Monday, both Sensex and Nifty continue their bullish trend in the stock market from the last two sessions of the market. The Sensex is trading above 52,000 levels and nifty trading above 15,200 levels in the stock market. The Sensex gained 503.33 points with a 0.98% increase and reached 52,044.01 levels. While the nifty gained 126.25 points with a 0.83% increase and reached 15,283.00 levels.
On the other side, the number of coronavirus cases in India on Monday, February 15th reached 1,09,16,589 with almost 1,55,732 deaths.
In the border markets, the S&P BSE SmallCap index reported a bullish trend in the stock market on Monday. It gained 105.20 points with a 0.54% increase and reached 19,728.03 levels. Whereas, the S&P BSE MidCap gained 295.25 points with a 1.48% increase and reached a 20,205.02 level. While the Nifty Bank gained 951.30 points with a 2.63% increase and reached 37,060.70 level.
Top Gainers on February 15th: Axis Bank, Bajaj Finance, ICICI Bank, SBI, and Bajaj Finserv are the top gainers in today’s stock market.
Top Losers on February 15th: SBI Life Insurance, HDFC Life, TCS, Dr. Reddy’s Laboratories, and Grasim Industries are the top losers in today’s stock market.