Motherson Sumi presented her results yesterday. On the basis of strong results, this stock was seen to have wings on Wednesday, and it ran up to 13 percent in intraday.
Motherson Sumi Systems.
During the trading hours yesterday, this stock touched its 52 week high of up to Rs 273.
The company has made a profit of Rs 713.62 crore in the January-March 2021 quarter, while in the January-March 2020 quarter, the company had a profit of only Rs 183.38 crore.
The company’s income in the January-March 2021 quarter also stood at Rs 16,971.91 crore as against Rs 14,434.48 crore, up 17.57 per cent year-on-year.
Motherson sumi share price.
The company’s EBITDA has increased from Rs 1,242 crore on a year-on-year basis to Rs 1,722 crore during this period.
The company’s board has also declared a dividend of Rs 1.50 per equity share for the financial year ended March 31, 2021.
The stock is trading at make or break level.
The stock is trading in an “upward sloping channel pattern”.
Today it hits the resistance level of the upward sloping channel at 272.85 which was Wednesday’s June 2 intraday high.
This level will act as immediate resistance for the stock. We may see some profit-booking in the next few trading sessions.
Presently the stock is trading at make or break level.
The recommended level for investors.
From here 272.85- 274 will act as a resistance zone for the stock. If it stays above 274, we will see the stock move higher.
When the Fibonacci layoff is planned on the weekly chart, the upward target is 398 (1.618% of the Fibonacci level).
We can see these levels in the next 2-3 months. For swing traders and intraday traders, 272.85 will act as immediate resistance and traders are recommended to go short with a stop loss above 275 for a target of 250.
For investors, we recommend moving above the 275 level only for a target of 398 with a stop loss of 230.
Investment strategies from Brokerages.
1. CLSA has given Outperform Rating on MOTHERSON SUMI and has a target of Rs.295 for the share.
He said the fourth quarter results were better than expected. He raised the company’s EPS estimate for FY22/23 by 2-3 per cent.
2. JEFFERIES has rated UnderPerformance on MOTHERSON SUMI and has a target of Rs.205 for the stock.
He says the company will continue to do well. He has a positive outlook on the stock for the long term.
Apart from this, the electric vehicle order book is mixed, while profits will continue to grow on the increase in EV market share.