Motherson sumi needs no introduction to Floks here
Motherson Sumi today hit fresh 52 week low after one of it’s main customer Volkswagon was caught in some irregularities for carbon emission in europe and may face the fine upto 18 billion dollars.
Moreover it’s another main customer Maruti has change it’s strategy of single vendor to multiple vendor to derisk the procurement. Maruti has stated it won’t procure more than 70% of components from single vendor. Motherson sumi supplies 85% of Maruti components. ( source moneycontrol )
I think this provides the opportunity to load up the stock as it has hit fresh low amid the uncertanities listed.
It’s a high quality management and always achieved it’s five year projected targets.
Though management said it won’t be much impacted with the volkswagon issue as it has only two plants in US.
Views invited by the fellow members.
Disc : Invested and added today @ 250 levels and forms 7% of portfolio
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