Buy Motherson Sumi Wiring India; target of Rs 75: ICICI Direct

ICICI Direct's research report on Motherson Sumi Wiring India

Motherson Sumi Wiring India (MSWIL) was established in 1986 as a JV with Sumitomo Wiring Systems (Japan). MSWIL is a leading, full-system wiring harness solutions provider in India catering to all major OEMs like Maruti Suzuki, Toyota Motors, Ashok Leyland, Tata Motors, etc. It listed on March 28, 2022. FY22 segment mix: PV: 60%; CV: 11%; 2W: 12%; Others: 17% • It has 23 plants in India with 40,000+ employees. It was recently carved out of the erstwhile Motherson Sumi (MSSL) at the behest of its JV partner.

Outlook

With fundamentals remaining unchanged and with unchanged estimates, we retain our BUY rating on the stock. Our target price, however, is now revised to Rs 75/share i.e. 42x PE on FY24-25E average EPS of Rs 1.8/share.