Motherson Sumi Systems Ltd s rating outlook revised to Stable from Negative by Moody s
Posted On: 2021-04-13 09:02:35 (Time Zone: Arizona, USA)
Moody s Investors Service ( Moody s ) today, has revised the company s rating outlook to Stable from Negative while affirming the Ba1 corporate family rating to Motherson Sumi Systems.
The improved outlook with the affirmed rating reflects the sustainability of earnings and de-leveraging witnessed in the last two quarters despite growth challenges due to the global pandemic. The company s 3CX10 strategy has helped diversify revenue and customer dependence making the underlying business more resilient. In addition, the turnaround witnessed in the company s loss making green-field facilities have also contributed to the improvement in earnings in recent quarters.
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NEW YORK, April 7, 2021 /PRNewswire/ Over the years, the integration of advanced safety and connectivity features in vehicles, such as advanced driver assistance systems (ADAS), GPS navigation, and vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) connectivity, has picked up. This is to be a key factor in the growth of the global automotive wire harness market from $42.8 billion in 2019 to $59.3 billion by 2030, at a 4.7% CAGR between 2020 and 2030, according to P&S Intelligence.
This is because the implantation of such features requires an array of sensors and electronic modules, which increases the requirement for wires to ferry electric current, as well as data. In this regard, the rising demand for autonomous vehicles is also acting as a major automotive wire harness market driver. Since autonomous vehicles require all the above-mentioned features and many more, a proper wiring network is paramount for them.
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Motherson Sumi Systems Ltd is quoting at Rs 224, up 1.06% on the day as on 12:49 IST on the NSE. The stock is up 263.64% in last one year as compared to a 75.1% jump in NIFTY and a 85.93% jump in the Nifty Auto index.
Motherson Sumi Systems Ltd gained for a third straight session today. The stock is quoting at Rs 224, up 1.06% on the day as on 12:49 IST on the NSE. The benchmark NIFTY is down around 0.55% on the day, quoting at 14828.85. The Sensex is at 50155.78, down 0.41%. Motherson Sumi Systems Ltd has gained around 1.5% in last one month.
Meanwhile, Nifty Auto index of which Motherson Sumi Systems Ltd is a constituent, has gained around 5.26% in last one month and is currently quoting at 10350.8, down 0.91% on the day. The volume in the stock stood at 70.05 lakh shares today, compared to the daily average of 184.87 lakh shares in last one month.
Auto stocks were trading with losses, with the S&P BSE Auto index decreasing 321.39 points or 1.35% at 23510.41 at 13:48 IST. Among the components of the S&P BSE Auto index, Maruti Suzuki India Ltd (down 2.52%), Bajaj Auto Ltd (down 1.98%),Hero MotoCorp Ltd (down 1.9%),TVS Motor Company Ltd (down 1.6%),Eicher Motors Ltd (down 1.6%), were the top losers. Among the other losers were Motherson Sumi Systems Ltd (down 1.6%), Tata Motors Ltd (down 1.04%), Mahindra & Mahindra Ltd (down 0.87%), Bosch Ltd (down 0.5%), and Ashok Leyland Ltd (down 0.16%). On the other hand, Amara Raja Batteries Ltd (up 0.59%), MRF Ltd (up 0.41%), and Balkrishna Industries Ltd (up 0.25%) turned up.