Brokers’ call: Motherson Sumi a Buy: CLSA

CLSA initiated coverage on Motherson Sumi Systems with a ‘Buy’ rating and target price of Rs 235. The auto ancillary company’s recent acquisitons abroad provide opportunities for revenues and profits to “leapfrog,” the analyst at CLSA said in a note.

The firm has delivered consistent growth in margins and has delivered on two five-year plans for profits, and is within “striking distance” of achieving revenues for its next five-year target, they said.