Motilal Oswal's research report on Motherson Sumi Wiring India
Market leader in the India wiring harness industry: Motherson Sumi Wiring India (MSUMI), a JV between Sumitomo Wiring System (SWS) and Motherson Group, is a market leader in the Indian wiring harness industry with a market share of over 40%. The wiring harness business is unique from the perspective of high human capital intensity (refer to exhibit 4) and lower capex requirement. MSUMI enjoys superior profitability led by improved efficiency and economies of scale, as reflected in the industry leading gross/EBITDA/ EBIT margins (refer to Exhibit 6).
Outlook
Our target P/E of 35x is in line with the other auto component companies, which enjoy similar competitive positioning, growth potential and superior capital efficiency (refer to Exhibit 23). We initiate coverage on the stock with a BUY rating and a TP of ~INR80 (premised on ~35x Mar-24E EPS).
More Info
At 11:26 hrs Motherson Sumi Wiring India was quoting at Rs 62.40, up Rs 0.10, or 0.16 percent.
It has touched an intraday high of Rs 63.30 and an intraday low of Rs 62.20.
It was trading with volumes of 59,808 shares, compared to its thirty day average of 423,189 shares, a decrease of -85.87 percent.
In the previous trading session, the share closed down 1.03 percent or Rs 0.65 at Rs 62.30.
The share touched its 52-week high Rs 75.90 and 52-week low Rs 10.00 on 26 April, 2022 and 24 March, 2022, respectively.
Currently, it is trading 17.79 percent below its 52-week high and 524 percent above its 52-week low.
Market capitalisation stands at Rs 19,705.51 crore.
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