Prabhudas Lilladher is bullish on Motherson Sumi Systems and has recommended accumulate rating on the stock with a target of Rs 324 in its May 22, 2014 research report.
"Motherson Sumi's Q4FY14 EBITDA performance was in line, with EBITDA margin improvement of 100bps YoY to 9.5 percent at the consolidated level. Samvardhana Motherson Reflectec (SMR) reported 9.2 percent growth in revenues in Euro terms with a Better-than-expected EBITDA margin of 10.6 percent. At the same time, Samvardhana Motherson Peguform (SMP) reported a strong 12.2 percent YoY increase in revenues in Euro terms. Motherson Sumi has already won orders to the tune of €4.3bn in FY14 which lends revenue visibility. Going forward, in our view, sales as well as margins will improve, with increased utilisation at SMR, improvement in standalone business and margin uptick at SMP. Hence, we reiterate our 'Accumulate' call with a SOTP-based TP of Rs324 as we roll over to Mar'16E earnings."
"Net sales within India on a consolidated basis were flat YoY at Rs12.7bn, whereas exports increased by 32.2 percent YoY to Rs70.2bn. On a consolidated basis, top‐line was up 25.9 percent to Rs84.0bn (PLe: Rs83.5bn), while EBITDA margins improved by 100bps YoY at 9.5 percent on account of 240bps improvement in SMR margins and 150bps YoY increase in margins at SMP. As a result, the overall consolidated EBITDA grew by 39.8 percent YoY to Rs8.0bn, (PLe‐Rs8.1bn). On account of lower tax rate, PAT (Adj. for MTM gain of Rs697m) grew by 43.6 percent YoY to Rs2.3bn (Ple‐Rs2.7bn). The main deviation was on account of higher interest cost which included Rs235m upfront fees for securing fresh borrowings and refinancing of existing facilities. On account of slowdown in the domestic automotive industry, net sales within India de‐grew by 2.8 percent YoY at Rs10.2bn, whereas, exports grew by 28.5 percent to Rs2.0bn. This led to a 1.5 percent YoY increase in standalone top‐line to Rs12.5bn. EBITDA margins were flat YoY which is commendable, given the slowdown in the industry. On account of higher other income, Adj. PAT grew by 19.9 percent YoY."
"We expect better times ahead for MSSL, with the execution of new order book at SMR and improvement in margins at SMP over the next one year. At the CMP, the stock is trading 20.6x FY15E and 15x FY16E earnings, which in our view, is attractive, given the ~33.0 percent CAGR in earnings for FY14‐FY16E. We reiterate our 'Accumulate' call on the stock with a SOTP‐based target price of Rs324. We value standalone business at Rs235 based on 20x Mar'16E EPS and subsidiaries/acquisitions valued at Rs89 based on 6.0x Mar'16E EV/EBITDA," says Prabhudas Lilladher research report.
For all recommendations, Click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
Anda sedang membaca artikel tentang
Accumulate Motherson Sumi; target of Rs 324: PLilladher
Dengan url
http://harmonisem.blogspot.com/2014/05/accumulate-motherson-sumi-target-of-rs.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Accumulate Motherson Sumi; target of Rs 324: PLilladher
namun jangan lupa untuk meletakkan link
Accumulate Motherson Sumi; target of Rs 324: PLilladher
sebagai sumbernya
0 komentar:
Posting Komentar