Shares of Motherson Sumi plummeted as much as 5.51 per cent on NSE on Monday after its customer Volkswagen posted a 4.1-billion-euros operating loss for 2015.
Shares of Motherson Sumi plummeted as much as 5.51 per cent on NSE on Monday after its customer Volkswagen (VW) posted a 4.1-billion-euros operating loss for 2015. Europe’s largest automaker VW took a 16.2 billion euros hit to pay for its diesel emissions test-rigging scandal.
At 12.59 pm, Motherson Sumi on NSE was trading 4.29 per cent down at Rs 262.15. The scrip opened at Rs 270 and has touched a high and low of Rs 270 and Rs 258.80, respectively, in trade so far.
According to Credit Suisse, Volkswagen struggles likely to impact earnings at Motherson Sumi. The global brokerage house maintained ‘underperform’ rating with target price of Rs 230.
The combination of likely pricing pressures from VW and its lower growth poses a risk to Motherson’s aggressive growth targets, said Credit Suisse.
For the quarter ended December 2015, the company reported a consolidated net profit of Rs 307.35 crore, up 20.90 per cent, against Rs 254.21 crore in the same quarter a year ago.
(With inputs from Reuters)