Motherson Sumi Wiring India Ltd logo

Motherson Sumi Wiring India Ltd

MSUMI NSE

Motherson Sumi Wiring India, a JV between Sumitomo Wiring System and Motherson Group, is a market leader in the Indian wiring harness industry with a market share of over 40%.[1]

AI Verdict: BUY Confidence: 6%

Motherson Sumi Wiring India offers strong ROE of 32-37% and robust sales growth of 23% TTM, supported by 83% analyst buy ratings. However, the premium valuation at 40.2x PE and 11.6x PB warrants caution, making it a buy only for investors with a 2-3 year horizon.

Key Fundamentals

SmallcapAuto ComponentsAutomobiles
Market Cap
₹26,314 Cr
Volatility
Moderate
P/E Ratio
43.43
EBITDA
₹1,011 Cr
Return on Equity
38.07%
Debt to Equity
0.16
Book Value
₹3.26
EPS
₹1.5
52W High
₹53.59
52W Low
₹35.7

Technical Indicators

Key Insights

Strengths

2
  • Company has a good return on equity (ROE) track record: 3 Years ROE 36.5%
  • Company has been maintaining a healthy dividend payout of 47.5%

Weaknesses

2
  • Stock is trading at 11.6 times its book value
  • Debtor days have increased from 49.3 to 59.9 days.

Growth Rate

Revenue Growth
22.47% ↗
Net Income Growth
2.55% ↘
Cash Flow Change
-53.88% ↘
ROE
-6.28% ↘
ROCE
-5.41% ↘
EBITDA Margin (Avg.)
-18.13% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
BUY
Risk medium

Motherson Sumi Wiring India offers strong ROE of 32-37% and robust sales growth of 23% TTM, supported by 83% analyst buy ratings. However, the premium valuation at 40.2x PE and 11.6x PB warrants caution, making it a buy only for investors with a 2-3 year horizon.

Bull Case 7
  • Exceptional return on equity with 3-year average ROE of 37% and last year ROE of 32%, indicating highly efficient capital deployment
  • Strong revenue momentum with TTM sales growth of 23% and 5-year compounded sales CAGR of 24%, reflecting consistent topline expansion
  • Overwhelming analyst consensus with 83.33% buy ratings (10 out of 12 analysts recommending buy)
  • Healthy dividend payout ratio of 47.5% with current dividend yield of 2.25%, attractive for a growth company
  • Consistent long-term profitability with 5-year compounded profit growth of 10% and 3-year profit CAGR of 9%
  • 5-year ROE track record of 41% demonstrates sustained competitive advantages and pricing power in the wiring harness segment
  • Market cap of Rs 24,902 crore provides adequate liquidity and institutional investor interest
Bear Case 8
  • Expensive valuation at 40.2x PE ratio, significantly above market average, leaving limited margin of safety
  • Trading at 11.58x price-to-book value, indicating the market has priced in substantial future growth already
  • Stock price CAGR of -5% over 1 year and flat 0% over 3 years shows poor price performance despite strong fundamentals
  • Deteriorating working capital with debtor days increasing from 49.3 to 59.9 days, signaling potential collection issues
  • TTM profit growth of only 3% despite 23% sales growth suggests margin compression and rising input costs
  • Zero sell-side coverage gaps with no hold ratings (0 out of 12) raises concerns about herd mentality in analyst consensus
  • Consumer discretionary sector exposure makes the company vulnerable to economic slowdowns and auto industry cyclicality
  • Significant divergence between sales growth (23% TTM) and profit growth (3% TTM) indicates operating leverage is weakening

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 3
  • Stock down 20.8% in 2026 Jun 04

    MSWIL shares declined 20.8% YTD 2026, with negative returns over six-month and two-year periods, trading below Rs 40 per share.

  • Copper cost pass-through lag Jun 04

    Emkay noted a lag in pass-through of higher copper costs could temporarily weigh on margins during Q1FY27.

  • Greenfield plants not yet profitable Jun 04

    All three greenfield manufacturing facilities are still in ramp-up phase and only collectively nearing EBITDA breakeven, excluding copper price fluctuations.

Positives 5
  • Emkay sets Rs 45 target Jun 04

    Emkay issued an Add rating with Rs 45 target price, implying ~16% upside from the Rs 38.77 trading price, citing Sumitomo Group support and competitive positioning.

  • 12-13% EBITDA margin target by Q2FY27 Jun 04

    Management targets 12-13% EBITDA margin excluding greenfield impact by Q2FY27, with investments expected to generate ~40% ROCE upon full ramp-up and payback within 3-3.5 years.

  • 40% domestic market share leader Jun 04

    MSWIL holds ~40% market share in India's wiring harness industry with an asset-light model and 46% ROE in FY21; Indian auto component sector projected to grow 8-10% in FY26.

  • 15 MWp solar project commissioned Jun 04

    Motherson commissioned a 15 MWp captive solar facility in Mahoba, UP, expected to generate 23.4 GWh annually and reduce ~17,000 MT CO2 emissions per year, improving energy cost visibility.

  • Dividend of Rs 0.58 declared Jun 15

    Board announced a dividend of Rs 0.58 per share for FY 2025-26 with TDS details outlined for shareholders.

Neutral 2
  • Rs 15.73 Cr block trade on NSE Jun 11

    A block trade of ~42.77 lakh shares at Rs 36.77 per share totalling Rs 15.73 crore was recorded on NSE, indicating institutional-level participation.

  • Multiple analyst/investor meetings scheduled Jun 22

    Company scheduled investor meetings with IIFL Capital (Jun 25), Balyasny Asset Management (Jun 22), and Kotak Securities (Jun 16) in Noida and virtually.

TL;DR: Motherson Sumi Wiring India maintains a dominant 40% domestic market share and has a clear margin improvement roadmap targeting 12-13% EBITDA by Q2FY27, supported by disciplined capital allocation and renewable energy investments. However, the stock has been under significant pressure with a 20.8% YTD decline driven by copper cost pass-through lags and greenfield ramp-up drag. Emkay's Rs 45 target suggests the sell-off may be overdone. The trend could improve if Q2FY27 margin targets are met and greenfield plants reach breakeven as guided.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
1,872
1,859
2,109
2,115
2,233
2,185
2,326
2,300
2,510
2,494
2,762
2,887
3,335
Expenses
1,655
1,665
1,856
1,853
1,941
1,946
2,076
2,063
2,238
2,250
2,482
2,625
3,061
Operating Profit
217
194
253
262
291
239
250
238
271
244
280
262
274
OPM %
12%
10%
12%
12%
13%
11%
11%
10%
11%
10%
10%
9%
8%
Other Income
5
14
1
1
4
5
5
1
2
1
1
1
1
Interest
9
8
7
6
6
5
7
7
6
6
6
7
6
Depreciation
35
34
36
38
39
40
44
47
48
49
53
56
57
PBT
179
166
210
219
250
198
203
185
220
190
221
200
212
Tax %
22%
26%
26%
23%
24%
25%
25%
24%
25%
25%
25%
25%
21%
Net Profit
138
123
156
168
191
149
152
140
165
143
165
149
167
EPS in Rs
0.21
0.19
0.24
0.25
0.29
0.22
0.23
0.21
0.25
0.22
0.25
0.23
0.25
Figures in ₹ Crores

Profit & Loss

  Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
3,938
5,635
7,068
8,327
9,319
11,478
Expenses
3,385
4,905
6,276
7,315
8,323
10,417
Operating Profit
553
730
792
1,012
996
1,060
OPM %
14%
13%
11%
12%
11%
9%
Other Income
24
-35
12
8
13
4
Interest
7
28
28
27
25
26
Depreciation
37
106
124
147
179
216
PBT
532
561
652
846
806
822
Tax %
26%
27%
25%
25%
25%
24%
Net Profit
396
411
487
638
606
625
EPS in Rs
—
0.62
0.73
0.96
0.91
0.94
Div. Payout %
0%
65%
59%
55%
26%
62%
Figures in ₹ Crores

Balance Sheet

  Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
0.1
316
442
442
442
663
Reserves
0
799
888
1,235
1,256
1,499
Borrowings
96
283
373
259
269
233
Other Liabilities
1,693
1,164
1,195
1,203
1,761
2,351
Total Liabilities
1,789
2,562
2,898
3,139
3,729
4,746
Fixed Assets
170
432
579
600
691
779
CWIP
0
32
27
24
37
2
Investments
0
0
0
0
0
0
Other Assets
1,620
2,097
2,292
2,516
3,002
3,965
Total Assets
1,789
2,562
2,898
3,139
3,729
4,746
Figures in ₹ Crores

Cash Flow

  Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
11
501
224
791
365
761
Investing
-28
-101
-194
-208
-60
-200
Financing
25
-144
-287
-452
-457
-509
Net Cash Flow
8
256
-257
131
-153
52
Free Cash Flow
-17
400
26
680
194
561
CFO/OP
23
95
51
100
56
92
Figures in ₹ Crores

Ratios

  Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
63
43
41
39
49
60
Inventory Days
116
97
95
76
77
82
Days Payable
109
92
73
62
71
93
Cash Conversion Cycle
69
47
64
54
55
48
Working Capital Days
49
31
42
39
32
44
ROCE %
—
88%
44%
48%
43%
39%

Shareholding Pattern

As of Mar 2026
Promoters 61.73%
DIIs 17.42%
FIIs 9.74%
Public 9.53%
Others 1.57%
Government 0.02%
Total 100.01%
  Mar 2022Jun 2022Sep 2022Nov 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Jul 2025Sep 2025Dec 2025Mar 2026
Promoters
61.73%
61.73%
61.73%
61.73%
61.73%
61.73%
61.73%
61.74%
61.73%
61.73%
61.73%
61.73%
61.73%
61.73%
61.73%
61.73%
61.73%
61.73%
61.73%
FIIs
0.00%
0.00%
0.00%
0.00%
0.03%
0.03%
0.00%
11.08%
11.01%
10.95%
10.78%
10.53%
9.86%
10.15%
10.37%
10.43%
10.27%
10.14%
9.74%
DIIs
13.37%
20.54%
18.85%
18.76%
18.34%
19.03%
17.99%
17.76%
17.33%
16.21%
16.23%
16.34%
16.74%
16.21%
16.24%
15.89%
16.58%
17.17%
17.42%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.02%
0.02%
0.02%
0.02%
Public
7.71%
7.53%
7.33%
7.48%
7.68%
8.08%
8.10%
8.16%
8.61%
9.56%
9.72%
9.95%
10.26%
10.49%
10.25%
10.44%
9.92%
9.50%
9.53%
Others
17.19%
10.21%
12.09%
12.03%
12.22%
11.13%
12.18%
1.25%
1.32%
1.54%
1.55%
1.46%
1.42%
1.43%
1.41%
1.50%
1.49%
1.43%
1.57%
No. of Shareholders
6,74,585
6,43,861
6,48,348
6,64,897
6,78,282
6,85,401
6,94,219
7,21,760
7,75,566
8,88,941
8,89,943
9,20,343
9,39,882
9,54,433
9,28,406
9,37,083
9,15,956
8,77,308
8,57,987

Documents

Frequently Asked Questions about Motherson Sumi Wiring India Ltd

What does Motherson Sumi Wiring India Ltd do?
Motherson Sumi Wiring India, a JV between Sumitomo Wiring System and Motherson Group, is a market leader in the Indian wiring harness industry with a market share of over 40%.[1]
Where is Motherson Sumi Wiring India Ltd (MSUMI) listed?
Motherson Sumi Wiring India Ltd is listed on the Indian stock exchanges. It is listed on NSE: MSUMI and BSE: 543498. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Motherson Sumi Wiring India Ltd belong to?
Motherson Sumi Wiring India Ltd operates in the Consumer Discretionary sector within the Auto Components industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Motherson Sumi Wiring India Ltd?
Motherson Sumi Wiring India Ltd has a market capitalisation of approximately ₹26314.43 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Motherson Sumi Wiring India Ltd?
The Price-to-Earnings (PE) ratio of Motherson Sumi Wiring India Ltd is 43.43. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Motherson Sumi Wiring India Ltd?
Over the past 52 weeks, Motherson Sumi Wiring India Ltd has traded between a low of ₹35.7 and a high of ₹53.59. This range helps investors understand the stock's price volatility and recent trading levels.
Does Motherson Sumi Wiring India Ltd pay dividends?
Yes, Motherson Sumi Wiring India Ltd has a dividend yield of 2.25%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Motherson Sumi Wiring India Ltd?
Motherson Sumi Wiring India Ltd has a Return on Equity (ROE) of 38.07%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Motherson Sumi Wiring India Ltd on Tapetide?
On Tapetide, you can view Motherson Sumi Wiring India Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Motherson Sumi Wiring India, a JV between Sumitomo Wiring System and Motherson Group, is a market leader in the Indian wiring harness industry with a market share of over 40%.[1]

Website mswil.motherson.com
Listed 2022-03-28
Face Value ₹ 1
Issued Size 6,63,16,61,898

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