Buy Motherson Wiring; target of Rs 70: Motilal Oswal

Motilal Oswal's research report on Motherson Wiring

4QFY23 performance was in line with expectations. The impact of ~11.5% QoQ increase in copper prices and the unfavorable mix were offset by improvements in operating costs and the ramp up of new businesses. With the completion of the ramp-up phase of the new facilities, utilization is expected to scale up further in the coming quarters, resulting in a healthy growth over the next two years.

Outlook

While we cut FY24E EPS by 2.7% to reflect higher RM prices, we raise FY25E EPS by 2.9% to factor in the increase in new orders and improved cost control measures. We reiterate our BUY rating with a TP of INR70 (35x Mar’25E EPS).

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