ICICI Securities's research report on Motherson Sumi Wiring India
Motherson Sumi Wiring India (MSUMI) continued to outperform the underlying industry driven by healthy content growth and new business execution. Reported margins (40bps below I-Sec) were impacted by start-up costs for its new plants. Profitability (ex-greenfields) remained steady YoY. Rising features-led premiumisation and a gradual shift towards EVs (including hybrids) continue to be the key levers for higher content per vehicle over the medium-to-longer term. New capacity addition, in line with customer order wins/new launches (across powertrains), is expected to drive healthy growth. Ramp-up of new plants and cost control (incl. localisation) remain crucial for margin recovery.
Outlook
Maintain BUY with a TP of INR 60 (unchanged), based on 35x FY27E EPS.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
