Emkay Global Financial's research report on Motherson Sumi Wiring India
MSUMI reported another quarter of strong performance, with revenue /EBITDA/PAT growth of 20%/39%/38% YoY. Continued premiumization trend (incl. SUV shift) and electrification have been key growth drivers, per Management. Backed by new order wins in both, ICE and EVs, MSUMI is adding 2 more facilities with up to 15% capacity rise and production starting from 1QFY25 (major ramp up 2HFY25 onwards). With market-share loss within MSIL now behind (Exhibit 3), break-through in 2 large SUV-focused OEMs and the EV-shift will help sustain the robust performance (even as PV industry growth is moderating).
Outlook
We expect 21%/28%/33% rev./EBITDA/PAT CAGR over FY24- 26E. We maintain BUY with unchanged TP of Rs80/sh, at 30x FY26E PER (refer to our report, Strong proxy play on PVs).
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!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.