Check Before You Invest : Motherson Sumi Wiring India Ltd

BSE: 543498 NSE: MSUMI ISIN: INE0FS801015

| Sector: Automobiles | Industry: Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Motherson Sumi Wiring India Ltd belong to?

Motherson Sumi Wiring India Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.

Q.2 Is Motherson Sumi Wiring India Ltd a good quality company?

Motherson Sumi Wiring India Ltd is a average quality company, based on a somewhat consistent 5-year financial track record.

Q.3 Is Motherson Sumi Wiring India Ltd undervalued or overvalued?

Motherson Sumi Wiring India Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Motherson Sumi Wiring India Ltd a good buy now?

Motherson Sumi Wiring India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Return on capital employed (ROCE) of Motherson Sumi Wiring India Ltd?

Motherson Sumi Wiring India Ltd Return on capital employed is 48.93% for FY-2025, which is below its 5-year historical median of 56.35%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.2 Return on Asset of Motherson Sumi Wiring India Ltd?

Motherson Sumi Wiring India Ltd Return on Asset is 17.93%, which is below its 5-year historical median of 19.17%, indicating deteriorated asset utilization efficiency.

Q.3 Gross Profit margin of Motherson Sumi Wiring India Ltd?

Motherson Sumi Wiring India Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.6% for FY-2025, which is below its 5-year median of 11.9%, indicating decreasing margins.

Q.4 Operating Profit Margin of Motherson Sumi Wiring India Ltd?

Motherson Sumi Wiring India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.69% for FY-2025, which is below its 5-year median of 12.16% indicating decreasing margins.

Q.5 Net Profit Margin of Motherson Sumi Wiring India Ltd?

Motherson Sumi Wiring India Ltd Net Profit Margin is 6.5% for FY-2025, is below with its 5-year median of 7.29%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	10.6	11.9
Operating Profit Margin	10.69	12.16
Net Profit Margin	6.5	7.29

Q.6 Debt to Equity ratio of Motherson Sumi Wiring India Ltd?

Motherson Sumi Wiring India Ltd Debt-to-Equity ratio is 0.01, which is lower with the industry average of 0.46, indicating lower debt levels in the industry.

Q.7 Debt to cash flow from operations of Motherson Sumi Wiring India Ltd?

Motherson Sumi Wiring India Ltd Debt to cash flow from operations is 0.03, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Motherson Sumi Wiring India Ltd?

Promoters hold 61.73% of the Motherson Sumi Wiring India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Motherson Sumi Wiring India Ltd vs industry peers?

Motherson Sumi Wiring India Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 12.41%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-	12.4
Gross Profit Growth	-0.9	16.2
Operating Profit Growth	-1.6	14.7
Net Profit Growth	-5	20

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	2.76	1.23
ROE	-	12.01
ROCE	48.93	13.5
Cash Conversion Cycle (days)	42.87	47

Valuation & price assessment

Q.1 Stock return of Motherson Sumi Wiring India Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 5.16% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	5.2%	9.4%

Q.3 Valuation ratios of Motherson Sumi Wiring India Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	43.08	51.19	28.80
Price to Book	12.46	17.97	2.99
Price to Sales	2.36	3.57	1.35
EV to EBITDA	25.25	29.79	11.86

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