Motherson Sumi: Production ramp up to aid margins

Shorter product cycles and new technologies bode well for revenue growth

The stock of Motherson Sumi has gained about 67 per cent over the past year on expectation that higher growth and margins at its overseas subsidiaries and steady performance in standalone business will help boost its financials. One of the key triggers for the stock is the performance of its overseas subsidiaries, SMR and SMP, which together contribute about 79 per cent to the consolidated top line.

The management has highlighted that globally, model life cycles — which include refreshes — are coming down and this benefits the company immensely across its segments. This, coupled with higher demand from automakers