Motherson Sumi Systems (MSSL), an auto parts company, gave better-than-expected results in the December quarter, with the company’s stock jumping 19% in just two days. Today, the company’s stocks jumped more than 9%, bringing its shares to a 52-week high. The company touched a high of Rs 225 today, while its shares opened at 206 today. This led to a jump of more than 10% in the stock of the company on the last trading session i.e. Friday. At 3.15 pm today, the company’s stocks were trading at Rs 212, up 7.20%.
Motherson Sumi Systems’ net profit has increased more than 4 times in the third quarter of this financial year. The company reported a net profit of Rs 1268.31 crore in Q3, compared to a net profit of only Rs 340.32 crore in the year-ago period. The company’s revenue from operations grew by 14% to Rs 17092.44 crore in the December quarter from Rs 15,000 crore in the year-ago period. The company’s EBITDA grew 60% to Rs 1795.5 crore in Q3.
CLSA increases target price to Rs 250
In view of MSSL’s impressive performance and positive outlook in the future, global brokerage firm CLSA has raised the company’s target pie to Rs 250. The brokered firm says the company’s results in Q3 have been impressive and will increase further in the coming years. CLSA has increased the share i.e. EPS from 21% to 29% for FY2022-23 on earnings. Let us tell you that in the last 3 months, MSSL stocks have increased by 60% and on yearly basis, its stocks have increased by 26%.