Motherson Sumi best bet for having exposure in domestic, European and US market: Miintdirect.com

In a chat with ET Now, Avinnash Gorakssakar, Head of Research, Miintdirect.com, shares his views on Motherson Sumi. Excerpt:

ET Now: Between Bharat Forge and Motherson Sumi, which one would you like?

Avinnash Gorakssakar: I would still like to bet on Motherson Sumi considering the fact that they have a good amount of exposure not only the domestic as well as the European and US market.

I would presume that to some extent, even the rupee kind of depreciation would actually help them. Motherson Sumi is a more stable player.

If you compare Bharat Forge with the kind of business model it operates, it has got a very large exposure in the US truck market which is yet not doing all that well.

For another quarter or so, Bharat Forge may not be able to get that kind of traction from its key US market. However, Europe is a kind of a good attractive spot for Motherson Sumi and the domestic market. They have a very large marquee customers like Maruti, Ford. In fact, the domestic market also could possibly throw a good upside for Motherson Sumi.

Hence, I would definitely look at it at the current level. There may be some weakness in the short term but over the next six months, I would say that Motherson Sumi has got good upside.

ET Now: What would be your target?

Avinnash Gorakssakar: I would presume at least an upside of another say 25-30 per cent.