Motherson Sumi share price up 5 per cent after company restructured its five year plan
Published On: Monday, November 23, 2020 | By: Team KnowMyStock
Shares of Motherson Sumi Systems (MSSL) gained 5 per cent to Rs 146.30 on the BSE in the intra-day trade on Monday and is near to 52 weeks high after the company outlined its next five-year plan, Vision 2025, with ambitious revenue and returns targets. At the analyst meeting, Vision 2025 was emphasized with a target of $36bn revenue in 2024-25 with 40 per cent ROCE, and additional focus on diversifying into new industries, with 75 per cent of revenues from the automotive industry and 25 per cent from new divisions. Other ambitions outlined included expanding into new divisions like medical, aerospace, logistics and IT and also 40 per cent consolidated dividend payout ratio. The analysts had given a different opinion about Motherson Sumi Systems. Motilal Oswal Financial Services has recommended buying the stock as restructuring will help the company shape up for the next phase of growth.
Analysts at JM Financial has suggested buying this stock and said that in the next 5 years, MSSL is likely to grow ahead of the automotive industry and achieve its USD 27bn targets. Emkay Global Financial Services is also positive on Motherson Sumi Systems on the back of its strong management capabilities and expectations of a gradual pick-up in underlying segments.
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