Motherson Sumi Systems shares rise more than 5.5% on hopes on good earnings

MUMBAI: The shares of Motherson Sumi Systems rose more than 5.5% on Monday after global brokerage UBS said that the component maker is expected to double its earnings in three years. Motherson Sumi, an Indian car component maker with a large exposure to carmaker Volkswagen, had seen a deep erosion in its share price ever since Volkswagen's cheat software scandal came to light. "We expect strong revenue growth and margin expansion in both its mirrors and polymers businesses, driven by an order book worth more than 10 billion euro," wrote Sonal Gupta, analyst, UBS Global Research, in a report recommending a ‘buy' headlined, "expect earnings to double in three years even in a downside case." The UBS analyst added that the concerns about sharp loss in market share are overblown. The company's wiring harness business remains most competitive and significant loss in market share is unlikely.