This buzzing stock has almost doubled investors’ wealth in a year!
5paisa Research Team
9th November 2021 - 05:28 pm
Motherson Sumi Systems is in the news again.
Motherson Sumi has been one of the buzzing stocks of the month. The stock was in the news due to the board’s approval of raising about Rs 1000 crore through the issuance of non-convertible debentures (NCDs). The stock has been an absolute winner for the shareholders. It has almost doubled its shareholders’ wealth in the trailing twelve months period, as it appreciated by a whopping 94% in the last year.
The company will be raising money on a private placement basis, in one or more series/tranches to certain eligible investors permitted to invest in the NCDs. On 8 November 2021, the stock ran by 2.98% on the BSE making it one of the trending companies of the day.
The stock was buzzing last month as well when it had announced the acquisition of two companies. One of the companies acquired was CIM Tools, which is engaged in manufacturing activities in the aerospace segment. The acquisition was a step into the diversification into non-automotive segments for the Motherson Group. One of the key risks for investors is the concentration in the auto sector. Any negative event in the sector would directly impact the company’s business. Hence, diversification remains a crucial task for the company.
Motherson Sumi is primarily engaged in the manufacturing and sale of automotive components for OEMs. The company has planned to focus on new areas such as aerospace, logistics solutions, technology and industrial solutions, and health & medical to generate 25% revenues from them by 2025.
The stock closed at Rs 239.00, marginally up by 0.19% on the BSE as on 9th November, 2021. The stock currently has a P/E of 34.7. The stock had created a fresh 52-week high of Rs 273 and a 52-week low of Rs 117.65.
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Tanushree Jaiswal
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