Motherson shares gain on earnings, stake sale

Reuters Market Eye - 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.

 

(Reporting by Manoj Dharra)