BSE:517334

Stock Analysis Report

Motherson Sumi Systems

Executive Summary

Motherson Sumi Systems Limited manufactures and sells components for the automotive and other industries in India, North America, South America, Europe, South Africa, the Middle East, the Asia Pacific, and Australia.

Rewards

Earnings are forecast to grow 22.45% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Motherson Sumi Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 517334's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.4%

517334

0.7%

IN Auto Components

-0.3%

IN Market


1 Year Return

-2.3%

517334

-3.4%

IN Auto Components

9.6%

IN Market

Return vs Industry: 517334 matched the Indian Auto Components industry which returned -4.2% over the past year.

Return vs Market: 517334 underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

517334IndustryMarket
7 Day0.4%0.7%-0.3%
30 Day-6.0%3.1%1.3%
90 Day13.6%7.8%2.6%
1 Year-0.8%-2.3%-2.4%-3.4%11.6%9.6%
3 Year-2.9%-5.7%4.4%2.0%29.1%21.8%
5 Year9.5%4.9%11.8%7.6%35.2%22.9%

Price Volatility Vs. Market

How volatile is Motherson Sumi Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Motherson Sumi Systems undervalued compared to its fair value and its price relative to the market?

28.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 517334 (₹139.1) is trading above our estimate of fair value (₹108.49)

Significantly Below Fair Value: 517334 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 517334 is poor value based on its PE Ratio (29x) compared to the Auto Components industry average (16.7x).

PE vs Market: 517334 is poor value based on its PE Ratio (29x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: 517334 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 517334 is overvalued based on its PB Ratio (4x) compared to the IN Auto Components industry average (1.5x).


Next Steps

Future Growth

How is Motherson Sumi Systems forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

22.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 517334's forecast earnings growth (22.5% per year) is above the savings rate (6.5%).

Earnings vs Market: 517334's earnings (22.5% per year) are forecast to grow faster than the Indian market (19.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 517334's revenue (7.1% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: 517334's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 517334's Return on Equity is forecast to be low in 3 years time (17.5%).


Next Steps

Past Performance

How has Motherson Sumi Systems performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 517334 has high quality earnings.

Growing Profit Margin: 517334's current net profit margins (2.3%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: 517334's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: 517334's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 517334 had negative earnings growth (-10.7%) over the past year, making it difficult to compare to the Auto Components industry average (-14.7%).


Return on Equity

High ROE: 517334's Return on Equity (12.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Motherson Sumi Systems's financial position?


Financial Position Analysis

Short Term Liabilities: 517334's short term assets (₹187.2B) exceed its short term liabilities (₹178.5B).

Long Term Liabilities: 517334's short term assets (₹187.2B) exceed its long term liabilities (₹112.3B).


Debt to Equity History and Analysis

Debt Level: 517334's debt to equity ratio (77.1%) is considered high.

Reducing Debt: 517334's debt to equity ratio has reduced from 146% to 77.1% over the past 5 years.

Debt Coverage: 517334's debt is well covered by operating cash flow (49.3%).

Interest Coverage: 517334's interest payments on its debt are well covered by EBIT (21.5x coverage).


Balance Sheet

Inventory Level: 517334 has a high level of physical assets or inventory.

Debt Coverage by Assets: 517334's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Motherson Sumi Systems's current dividend yield, its reliability and sustainability?

1.08%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%0.6%markettop25%2.3%industryaverage0.8%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: 517334's dividend (1.08%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 517334's dividend (1.08%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: 517334's dividend payments have been volatile in the past 10 years.

Growing Dividend: 517334's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.3%), 517334's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 517334's dividends in 3 years are forecast to be well covered by earnings (32.4% payout ratio).


Next Steps

Management

What is the CEO of Motherson Sumi Systems's salary, the management and board of directors tenure and is there insider trading?

7.2yrs

Average board tenure


CEO

Deepak Tyagi (53yo)

0yrs

Tenure

₹3,015,000

Compensation

Mr. Deepak Tyagi is Chief Technology Officer and Member of Executive Board at PKC Group Oyj since 2017. Mr. Tyagi is responsible for design development of wire harnesses for MSSL Wire Harness Division, lea ...


Board Age and Tenure

7.2yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 517334's board of directors are considered experienced (7.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Deepak Tyagi (53yo)

    Chief Executive Officer of MSSL Ireland Pvt Limited - IRELAND

    • Compensation: ₹3.02m
  • Rakesh Satwah

    Managing Director of Kyungshin Industrial Motherson Limited (KIML)

    • Manjul Kulshrestha

      President of Anest Iwata Motherson Limited

      • N. Ramanathan

        President of Schefenacker Motherson Ltd

        • P. Acharya

          Executive Officer of Motherson Advance Polymers Limited (MAP)

          • Sanjeev Ahuja

            Chief Representative of Motherson Sumi Systems Limited - Singapore

            • Compensation: ₹1.66m
          • Pankaj Mital (53yo)

            COO & Whole-Time Director

            • Tenure: 8.3yrs
            • Compensation: ₹25.83m
          • Gaya Gauba (58yo)

            Chief Financial Officer

            • Compensation: ₹21.60m
          • Vivek Avasthi (57yo)

            Executive Officer

            • Compensation: ₹2.59m
          • Alok Goel (47yo)

            Company Secretary

            • Tenure: 2.3yrs
            • Compensation: ₹7.96m

          Board Members

          • Pankaj Mital (53yo)

            COO & Whole-Time Director

            • Tenure: 8.3yrs
            • Compensation: ₹25.83m
          • Arjun Puri (63yo)

            Independent Director

            • Tenure: 14yrs
            • Compensation: ₹4.23m
          • Vivek Sehgal (63yo)

            Chairman

            • Tenure: 7.2yrs
          • Naveen Ganzu (57yo)

            Independent Director

            • Tenure: 4.3yrs
            • Compensation: ₹3.85m
          • Sushil Tripathi (73yo)

            Lead Independent Director

            • Compensation: ₹4.20m
          • Laksh Sehgal (36yo)

            Non-Executive Director

            • Tenure: 10.8yrs
          • Gautam Mukherjee (62yo)

            Independent Director

            • Tenure: 7.3yrs
            • Compensation: ₹4.32m
          • Geeta Mathur (52yo)

            Independent Director

            • Tenure: 6yrs
            • Compensation: ₹4.27m
          • Shunichiro Nishimura (53yo)

            Non-Executive Director

            • Tenure: 1.7yrs
          • Takeshi Fujimi (58yo)

            Director

            • Tenure: 0.5yrs

          Company Information

          Motherson Sumi Systems Limited's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Motherson Sumi Systems Limited
          • Ticker: 517334
          • Exchange: BSE
          • Founded: 1986
          • Industry: Auto Parts and Equipment
          • Sector: Automobiles
          • Market Cap: ₹444.454b
          • Shares outstanding: 3.16b
          • Website: https://www.motherson.com

          Number of Employees


          Location

          • Motherson Sumi Systems Limited
          • Plot No.1
          • Sector-127
          • Noida
          • Uttar Pradesh
          • 201301
          • India

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          517334BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 1994
          MOTHERSUMINSEI (National Stock Exchange of India)YesEquity SharesININRDec 1994

          Biography

          Motherson Sumi Systems Limited manufactures and sells components for the automotive and other industries in India, North America, South America, Europe, South Africa, the Middle East, the Asia Pacific, and Australia. It operates in MSSL Standalone, SMR, SMP, PKC, and Others segments. The company offers wiring harnesses; exterior and interior, and camera-based vision systems; and modules and polymer products, including plastic parts and integrated systems for car makers, as well as elastomer-based solutions and products for a range of applications, including automotive, medical, home appliances, and general industrial applications. It also provides technology and software solutions; metal products, such as cabins for off-highway vehicles; shock absorbers, cutting tools, gear-cutting tools, precision machined metal components, sheet metal parts, and clutches for car AC compressors; and sintered metal parts, aluminium diecast products, and thin film coating services to various customers. In addition, the company offers HVAC systems for passenger cars and commercial vehicles, as well as air conditioning systems and roof hatches for buses; and retail, logistics, and other services. Further, it provides extruded and injection-moulding tools and components; moulded and extruded-rubber components; IPs, door trims, and bumpers; automotive modules that include lighting systems, air intake manifolds, and pedal box assemblies; wireless power products; and manufacturing support services for compressors, paint-coating equipment, auxiliary equipment for injection moulding machines, intelligent cooling solutions, and automotive manufacturing engineering services. It supplies its products direct business to business; and through distributor networks and agencies, and direct sales and services to end customers. The company was founded in 1986 and is headquartered in Noida, India. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/28 12:52
          End of Day Share Price2020/01/28 00:00
          Earnings2019/09/30
          Annual Earnings2019/03/31


          Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.