Motherson Sumi share price falls 2% post rating downgrade by Moody's
BusinessToday.In July 14, 2020
Motherson Sumi share price fell in early trade today after Moody's Investors Service lowered the auto components maker's rating outlook to 'negative' from 'ratings under review'. The rating was lowered on account of expected weak financial performance in ongoing fiscal due to the coronavirus pandemic. Share price of Motherson Sumi slipped 2.03% in early trade to Rs 94.10 against the previous close of Rs 96.05 on BSE.
Motherson Sumi stock trades higher than 50 day and 100 day moving averages but lower than 5 day, 20 day and 200 day moving averages. The large cap stock has lost 20% in one year and 35% since the beginning of this year. Total 0.52 lakh shares changed hands amounting to turnover of Rs 52.01 lakh. Market cap of the firm stood at Rs 29,872 crore.
The stock hit 52-week high of Rs 151 on January 9, 2020 and 52-week low of Rs 48.50 on March 24, 2020.
Moody's changed the outlook on the rating to 'negative' from 'ratings under review', the rating agency said in a statement.
On July 3 , shares of the firm fell over 9 per cent intra day after the company announced a group restructuring plan. The company will demerge its domestic wiring harness (DWH) business into a new firm that will eventually be listed. The stock plunged 9 per cent to Rs 94.30 on the BSE. On the NSE, it declined 9.11 per cent to Rs 94.20.
The reorganisation was approved by the respective boards of MSSL and group firm Samvardhana Motherson International Ltd (SAMIL).
As part of the restructuring, after the demerger of DWH, SAMIL will be merged into MSSL to consolidate 100 per cent shareholding in Samvardhana Motherson Automotive Systems Group BV (SMRP BV) as well as to bring all auto component and allied businesses in SAMIL under MSSL, the company said.
The group reorganisation plan realigns interests of all its stakeholders and creates a simplified corporate structure for growth of businesses across product portfolios within the auto components space and allied operations.