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 (90bps 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 support near-to-medium-term growth. Ramp-up of new plants and cost control (incl. localisation) are expected to drive margin recovery.
Outlook
Maintain BUY with a revised TP of INR 48 (earlier INR 50 bonus adjusted), based on 35x FY27E EPS.
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