Motherson Sumi Systems Limited (MSSL), the flagship company of the Samvardhana Motherson Group, was established in 1986. Motherson Sumi Systems Ltd (MSSL) is a JV between Samvardhana Motherson International (SMIL) and Sumitomo Wiring Systems, Japan (SWS). MSSL is a diversified auto parts maker with presence in automotive mirrors, wiring harness and moulded plastic parts.
Valuation: We remain positive on MSSL given its strong order book position, ramp-up of new plants (SMP) and continuous increase in content per vehicle driven by diversified product offerings and premiumization. Overall, we build robust revenue/PAT CAGR of 16%/30% with strong growth expected across SMP, standalone and PKC businesses. We recommend BUY rating on the stock with a target price of Rs. 343 based on 24x FY20E EPS.
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