Motherson Sumi Stock Jumps To Highest In More Than Two Years On Q3 Results Beat, Debt Reduction

Shares of Motherson Sumi Systems Ltd. reversed losses to rise to the highest in more than two years as profit and revenue surged in the third quarter and debt reduced.

Key Segmental Highlights (Year-On-Year)

• Domestic wire harness business revenue up 44% to Rs 1,343 crore, while Ebitda increased 62% to Rs 202 crore.
• Revenue for Samvardhana Motherson Automotive Systems Group BV—joint venture between Motherson Sumi and Samvardhana Motherson International Ltd.—up 3% at 1,450 million euros. Its Ebitda rose 69% to 147 million euros.
• Samvardhana Motherson Reflectec revenue up 2% at 385 million euros. Its Ebitda rose 24% to 51 million euros.
• Samvardhana Motherson Peguform revenue up 4% at 1,064 million euros. Its Ebitda doubled to 101 million euros.
• PKC revenue and Ebitda flat at 286 million euros and 27 million euros, respectively.

Shares of Motherson Sumi gained as much as 8.5% as of 12:30 p.m. to Rs 194.6 apiece — the highest since September 2018. The stock is up for the third straight session.

Of the 30 analysts tracking the company, 21 have a 'buy' rating, eight suggest a 'hold' and one recommends a 'sell', according to Bloomberg data. The stock is trading 9.5% higher than its 12-month consensus price target of Rs 165.7.