Global research firm HSBC has retained a buy on Motherson Sumi Systems as the house sees long term potential in the stock. The firm is of the view that the correction in the stock is overdone post Q3. It expects the company’s businesses to return to strong growth trajectories.
However, the research firm has cut the target price of the stock to Rs 400 from Rs 425 per share on the back of plant delays.
The company on February 14 reported a consolidated net profit of Rs 561.71 crore in the third quarter ended December 2017. Consolidated total revenue from operations during the period under review stood at Rs 14,397.85 crore. It was Rs 10,784.19 crore in the year-ago period.
In an interview to -Chairman of the company said that he do not see any weakness on the sales front. However, some weakness likely in certain small sectors, he added.
Earlier this month, Motherson Sumi Systems, part of the Samvardhana Motherson Group, through its subsidiary Samvardhana Motherson Automotive Systems Group on Monday formed a joint venture with Ossia In, innovator of the revolutionary Cota Real Wireless Power technology.
The JV will focus on the integration of Cota technology into a wide range of non-military passenger, commercial and public transportation vehicles. The JV aims to have its system deployed in both private and public vehicles by 2021 to not only deliver continuous wireless power to occupants’ personal device but also power various sensors in and on the vehicles themselves, including brake sensors, tire pressure gauges and key fobs.
At 12:39 hrs Motherson Sumi Systems was quoting at Rs 329.40, up Rs 1.70, or 0.52 percent. It has touched an intraday high of Rs 336.00 and an intraday low of Rs 328.35.
The share touched its 52-week high Rs 395.00 and 52-week low Rs 229.31 on 20 December, 2017 and 27 February, 2017, respectively.moneycontrol