InvestorQ : Can I buy Motherson Sumi considering the stock price has come off in the last one year?
Mahil Khan made post

Can I buy Motherson Sumi considering the stock price has come off in the last one year?

Answer
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Jignesh Gupta answered.
1 year ago


To begin with, the latest quarter results of the company were not too flattering. Motherson Sumi reported a 42% fall in net profits for the Jun quarter to Rs.361 crore on the back of a 17% rise in expenses and higher input costs. Revenues for the quarter were up by 14% at Rs.16,793 crore. That leaves the net profit margins for the quarter at a little above the 2.2% mark.

The stock has been under pressure due to the slowdown in the auto sector in India and the world over and that is only going to get more acute as the shift to EVs gathers steam. The weak net profit margins will stand against any good stock price performance. Don’t look at buying the stock right now.