MSSL has established itself as globally preferred solution provider to the automotive industry for interior and exterior modules, rear view vision systems and wiring harness.
MSSL is currently the largest auto ancillary in India and also ranked 55th in global auto component suppliers.
MSSL has completed it’s fourth FIVE year plan with truly impressive performance by surpassing the revenue target of US $5 billion set up in 2010 & achieved consolidated revenue of US $ 5.5billion
MSSL is continuously striving to expand their global footprint, product range and customer base. It has it’s presence in 25 countries with 124 plants. The company’s clients list includes volvo, Ford, Nissan, Renault, BMW, Suzuki, General motors, Tata motors, Hyundai Motor, Maruti, Dailer, Toyota,Honda, Mahindra & Mahindra,caterpillar, Tata Hitachi etc…
Net profit of Q1 MSSL has increased to Rs 2657.60(Q1-2016) million from Rs . 1637.30 million (Q1-2015) an increase of 62.32%. PAT grew by 30.99% to Rs 5303.10(Q1-2016) million from Rs 4048.40 million(Q1-2015)
Company has good consistent profit growth of 59% over 5 years and ROE of last 10 years is 26% with a healthy dividend payout of 29%
Vision 2020 of MSSL contains FOUR following key objectives:
US $ 18 billion of consolidated revenues in 2020
a ROCE of 40%
“3C*15’( no component, customer or country to represent more than 15% of turnover)
A dividend pay-out of 40% of consolidated profits.
As per the vision of 2020, we can expect CGAR of the company to grow significantly.
Promoters are holding 65.69%, FIIs are holding 18.61%, DIIs are holding 5.19% stake and public is holding only 10.61%.
Considering past record and future projections one can analyse further and invest in this stock @CMP Rs 343.25 with a target of Rs 410 to 430 for medium to short term investment.
I would recommend this stock for long term.