Underperform on Motherson Sumi with a target at Rs 240: Credit Suisse

Credit Suisse maintains an underperform rating on Motherson Sumi post March quarter results but raised its 12-month target price to Rs 240 from Rs 230 earlier.

The strong margin performance at Samvardhana Motherson Reflectec (SMR) led to top-line recovery at Indian business, said the brokerage note.

However, the bigger disappointment was in Samvardhana Motherson Peguform (SMP) profitability as margins were flat YoY. The management attributed the decline to the adverse impact of start-up costs.