Motherson Sumi Wiring
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Motherson Sumi Wiring India Limited (MSUMI) is navigating a complex automotive landscape, with management emphasizing a strategic focus on electric vehicle (EV) integration and operational excellence. Recent earnings calls highlighted a robust revenue growth of 37% YoY, driven by increased content per vehicle, particularly in the EV segment. However, profitability has been challenged by rising copper prices and wage inflation, prompting management to negotiate cost recoveries with OEMs. Vista's financial outlook reflects a moderate revenue growth trajectory, with stable margins expected as the company ramps up greenfield facilities. The balance sheet remains conservatively financed, supporting operational stability. Industry trends favor MSUMI, with a shift towards EVs enhancing market opportunities, although global sales declines and commodity price volatility present headwinds. Over the next 12-24 months, key opportunities include expanding production capacity and enhancing R&D capabilities, while watchpoints include the impact of raw material costs and potential technology disruptions in the automotive sector
Why We Like This Stock
- Strong revenue growth driven by increased content per vehicle, particularly in the EV segment
- Management's commitment to operational excellence and capacity expansion through greenfield facilities
- A conservatively financed balance sheet supports financial stability and growth initiatives
Things To Watch Out For
- Profitability pressures from rising copper prices and unexpected wage inflation
- Potential technology disruptions in the automotive sector could impact competitive positioning
- Global sales declines and commodity price volatility pose risks to revenue growth
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 8,327 | 9,319 | 11,478 | 12,986 | 14,726 |
| Profit Before Tax (Cr.) | 846 | 806 | 822 | 867 | 1,020 |
| PBT Margin | 10.2% | 8.6% | 7.2% | 6.7% | 6.9% |
| Net Profit (Cr.) | 631 | 602 | 621 | 655 | 770 |
| Earnings Per Share | 1.0 | 0.9 | 0.9 | 1.0 | 1.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Motilal Oswal | ▲ Buy | 48 | 07-Aug-2026 |
| ICICI Securities | ▲ Buy | 50 | 05-Aug-2026 |
| Nomura | ► Hold | 50 | 09-Jun-2026 |
| Choice Equity | ▲ Buy | 48 | 29-Apr-2026 |
| Elara Capital | ▲ Buy | 37 | 28-Apr-2026 |
| Nuvama | ▲ Buy | 60 | 28-Apr-2026 |
Company Overview
Show Company Profile
Motherson Sumi Wiring India Limited engages in the manufacture and sale of components to automotive original equipment manufacturers in India and internationally. The company provides wiring harness solutions to original equipment manufacturers; and manufactures, assembles, delivers integrated electrical and electronic distribution systems for power supply and data transfer across vehicle types. It also provides integrated electrification solutions for vehicles with alternative powertrains, including high-voltage wire harnesses; and develops solutions for internal combustion engine vehicles, as well as electric and hybrid vehicles. In addition, the company offers digital assembly boards, color detection systems, component presence sensors, and online work instructions. Further, it manufactures wiring harnesses products for passenger cars; two-wheelers and recreational vehicles; heavy, medium, and light-duty commercial vehicles; motorcycles and three-wheelers; multi-utility vehicles; farm and material-handling equipment; and off-highway vehicles. Additionally, the company offers specialized wiring harnesses for consumer durables, office automation equipment, medical diagnostic equipment, and other electrical and electronic equipment. Motherson Sumi Wiring India Limited was incorporated in 2020 and is headquartered in Noida, India.