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Motherson shares gain on earnings, stake sale

Source : REUTERS
Last Updated: Wed, Feb 13, 2013 09:24 hrs
Employees pack auto components at the factory of the Samvardhana Motherson Group in Noida

Shares in Motherson Sumi Systems Ltd gain 5.15 percent, a day after posting a recovery in earnings and ahead of a planned stake sale that traders say could happen at a premium.

The auto parts maker said on Tuesday it would issue 4.4 million shares to institutional investors, on the same day when it reported swinging to a net profit from a net loss a year ago, and posting a 74 percent surge in sales.

"We take comfort in the management's good track record," UBS said in a note on Tuesday, noting factors such as improved productivity and higher utilisation ratios would lead to further gains in the shares.

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