Motherson Sumi System limited

 

Industry Profile: Indian automobile industry is one of the largest and one of the most competitive in the world. In FY 15-16 production total was 23.96 million vehicle. The sector accounts for 7.1 percent of GDP of India out of which 81% is Two-wheeler market. Indian automotive aftermarket is estimated to grow at around 10-15 percent to reach US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate up to US$ 300 billion in annual revenue by 2026, create 65 million additional jobs and contribute over 12 percent to India’s Gross Domestic Product. Maruti in Car and Hero Moto Corp is in Two wheeler market are leaders. Passenger Vehicle holding 13% market. Maruti Suzuki expects Indian passenger car market to reach four million units by 2020, up from 1.97 million units in 2014-15. Mr. Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India is a key market for the company, not only in terms of volumes but also as a hub of small products for exports to 92 countries. As many companies trying to increase revenue, rural Market is large for further growth. India is also being one of the leading exporters of automobiles and has strong export growth expectations for near future. In April-March 2016, overall automobile exports grew by 1.91 percent. PV, Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 percent, 16.97 percent, and 0.97 percent respectively in April-March 2016 over April-March 2015. The industry has attracted Foreign Direct Investment (FDI) worth US$ 15.79 billion during the period April 2000 to September 2016, according to data released by Department of Industrial Policy and Promotion (DIPP). Several automobile manufacturers, from global majors such as Audi to Indian companies such as Maruti Suzuki and Mahindra & Mahindra, are exploring the possibilities of introducing driverless self-driven cars for India

Company profile: Motherson Sumi Systems Limited (MSSL), the flagship company of the Samvardhana Motherson Group was established in 1986 in joint partnership with Sumitomo Wiring Systems, Japan. Including its subsidiaries and JVs, Motherson Sumi Systems, is one of the leading manufacturer of automotive wiring harnesses, mirrors for passenger cars and a leading supplier of plastic components and modules to the automotive industry.

Its broad business portfolio includes wiring harnesses, mirrors for passenger car, injection molded products, modules including dashboards, door trims, bumpers, blow molded components, liquid silicone rubber molded components, injection molding tools, extruded rubber products, precision machined metal components and waste recycling systems.

Shareholding Pattern: 9 promoter entities hold 63.10%. out of them, one is a foreign individual, 4 are Indian individuals 3 are foreign trusts. 6.8% held by Mutual Funds. 0.24% held by Financial Institutions. nearly half percent held by insurance companies. 19.74% held by Foreign investors. remaining is held by the public.

Financials and Ratio

 2010 - 112011 - 122012 - 132013 - 142014 - 152015 - 162016 - 17
Revenue8,417.8014,921.1025,633.9030,738.5035,049.5038,716.1042,639.70
Net profit442.90196.30450.70765.00862.501,273.701,554.30
NPM5.26%1.31%1.75%2.48%2.46%3.28%3.64%
EPS10789101011
Book Value47.0860.9445.6142.4049.0742.9174.82
Dividend per share22.532.522.252.75
Dividend Payout27.37%34.2826.45%28.82%30.67%25.96%18.05%
ROE24.4313.9419.5025.9326.0230.0618.78
ROCE14.774.507.4610.469.4811.267.40
ROA7.602.153.464.974.906.144.80
Asset Turnover160.57122.56197.32198.06196.83185.27131.27
Debt to Equity0.712.221.791.351.481.411.23

Future Prospectus: Being Automobile ancillary company The company is leading auto ancillary company. having tie-ups with Audi and other big brand companies, it is clear the growth will be good in future. Margins were muted but that was due to recent launching of big plants. Everything else is looking good.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter