Motherson Sumi Wiring India Share Price Target: Auto Comp Maker Stock Under Rs 60 - Buy, Sell or Hold?

Stock To Buy: On the backs of strong revenue growth in Q4FY25, brokerage house Emkaay has recommended to buy Motherson Sumi Wiring India (MSUMI). The shares of this wiring harness player rose 1.71 per cent to Rs 57.24.

"MSUMI reported an in-line Q4, with revenue growing 12 per cent year-on-year (YoY) acceleration in outperformance vs MSIL to ~6 per cent vs ~3.7 per cent in 9M) and margin increasing by 48bps quarter-on-quarter (QoQ) to 10.8 per cent. Adjusted for greenfields, revenue growth stood at 9 per cent, while the margin remained stable sequentially at 12.4 per cent," according to an Emkaay report.

Amid a generally tepid PV industry outlook, - 5 per cent CAGR over FY25-27E, MSUMI’s ramp-up at leading SUV-focused customers (~Rs21bn revenue potential on full ramp-up from order wins in Mahindra & Mahindra, MSIL, and TTMT for ICE and EV models) and secular kit value tailwinds (premiumization: content in SUVs is 1.5x of sedans; electrification: content in E-PVs/E-2Ws is 2.4x/5x of ICE vehicles) will aid outperformance. Our Earning Per Share (EPS) estimates are largely unchanged (higher revenues negated by greenfield-related employee costs, Q4 margin miss); we retain ADD, with an unchanged Target Price (TP) of Rs 60, at 28x FY27E per," according to Emkaay brokerage house report."

Emkaay Sets MSUMI Target Price At Rs 60

The key wiring harness manufacturer, known to supply to 9 out of the ten most prominent PV models in the south Asian nation has a target price set by Emkaay at Rs 60. The Gurugram-headquartered firm has plans to set up three greenfields to support future growth, among which Pune-already commissioned; Gujarat-2 lines, to be commissioned in Q1/Q2; Haryana-to be commissioned in Q2, as per the afore mentioned report.

These greenfields are for EV as well as ICE programs of customers; company also expects that upon full ramp up (achieving target volumes shared by OEM clients), these will contribute Rs 21billion in revenue annually. It also expects the greenfields to operate at optimum utilization in H2.