Motherson Sumi Systems – Declining Margins

We do not rate Motherson Sumi Systems (MSSL). Motherson Sumi Systems is the flagship company of Samvardhana Motherson Group. It is engaged in manufacturing of Electrical Distribution Systems (EDS) and Polymer Processing. Provides a complete range of services from design to manufacture, supplies and logistics to consumers in India and abroad. It is the largest manufacturer of rear view mirrors for passenger cars and MUVs in India with a 45% share in this segment. Caters to Material Handling, Earth Moving and Farm Equipment, White Goods & Electronics, Elevators, Office Automation and Medical Equipment industries with presence in 20 countries across the globe. During Q2 2010, net sales increased by 252% y-o-y to INR15,878 million. Net loss stood at INR37 million, compared to net profit of INR424.5 million during Q2 2009

Investment Highlights

Provider of diverse solutions. From design to manufacturing, Motherson possesses the ability to provide end-to-end solutions supported by logistical solutions. MSSL and its joint ventures have been partners in the design and development of wiring harnesses, plastic components, tooling and mirrors to leading automobile manufacturers in India. It also has a high degree of backward integration for key inputs along with a well diversified vendor base. This diversification has strengthened MSSL’s ability to de-risk its business model and
emerge as an increasingly profitable company.

Market share. MSSL pioneered the introduction of integrated wiring harnesses and wood stock door trims in India. It accounts for the largest share of passenger car wiring harnesses (65%) and automotive wires in India. It is among the largest plastic component suppliers to the automotive industry. It is the largest OE manufacturer of rear view mirrors for passenger cars in India with 45% market share.

Integrated solutions and alliances. The strength of MSSL lies in its ability to integrate diverse products and technologies into comprehensive solutions provided by its numerous manufacturing bases. It offers contemporary products using latest technologies through business-enhancing collaborations. MSSL has collaborated with 10 international partners from five countries

Investmentguruindia.com provides expert advice, recommendations, broking firm tips, reports, technical analysis, news and many more things for stock market, mutual fund, commodities, IPO, currency derivatives, F&O, world market.

Countery: Microsec

Imp Link: BSE, NSE, Sensex, Nifty, MCX, NCDEX

Keyword: Free Tips, Recommendation, News, Stock Market, Mutual Fund, Commodities, Currency Derivatives, World Market, IPO, Investment In India, Investment Guru India, Technical Analysis, NSE, BSE, MCX, NCDEX, Expert Advice, F&O, Nifty, Sensex, Indian Equity Market, Indian Mutual Fund, Indian Commodities , Indian Currency Derivatives, Indian  IPO, Updates, stock market today, stock trading, online stock trading, money market, buy, sell, currency market, market forecast, share trading, online trading, options trading investment funds, stocks shares, stocks and shares, share price, insurance, financial services, morning star, day trade, currency options, futures brokers

Disclaimer: While we have made efforts to ensure the accuracy of our content (consisting of articles, views, advice and information), neither this website nor the author shall be held responsible for any losses/ incidents suffered by people accessing, using or is supplied with the content. The views and investment tips expressed by investment experts and authors on investmentguruindia.com are their own, and not that of the website or its management. Investmentguruindia.com advises users to check with certified experts before taking any investment decisions. Investment in mutual funds is subject to market risk so please read offer document before you invest. The Calls, views, advice made herein are for informational purpose and are not recommendations to any person to buy or sell any securities. The author does not accept any liability for the use of this column. Readers of this column those who buy or sell securities based on the information in this column are solely responsible for their actions. The author may have positions in any of the stocks mentioned in this column. The Recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. Readers using the information contained herein are solely responsible for their actions. The information and views contained herein are believed to be reliable but no responsibility or liability is accepted for errors of fact or opinion. Editors may or may not have trading or investment positions in the securities mentioned herein.  Also Read Disclaimer