One can look at investing on Motherson sumi for short term gain and in any case this is a good stock for long term.
Motherson sumi has higher exposure to Audi than Volkswagen and the company’s revenue diversification efforts should limit the impact.
The other issue is about plans by Maruti to diversify its vendor base and could hit Motherson as the former is a major client in India. While 85 per cent of Motherson’s revenues come from outside the country, India is the most profitable market with margins at about 18 per cent compared to less than 10 per cent for its large overseas subsidiaries SMR and SMP. However, the company has been diversifying its client base and expects to minimise the fallout of the same.