Motherson Sumi Wiring India Ltd (MSUMI) AI Stock Analysis

• Market Cap: ₹270.17B
• Dividend Yield: 1.24%
• Average Volume (3M): 743.05K
• Price to Earnings (P/E): 53.8
• Beta (1Y): 1.07
• Revenue Growth: 13.60%
• EPS Growth: -23.62%
• Country: IN
• Employees: 5,018
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.21
• Shares Outstanding: 6,631,662,000
• 10 Day Avg. Volume: 276,566
• 30 Day Avg. Volume: 743,046
• PEG Ratio: -7.15
• Price to Book (P/B): 13.29
• Price to Sales (P/S): 2.43
• P/FCF Ratio: 116.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.96
• Revenue Forecast (FY): ₹110.97B

• Rating: 71 Outperform
• Price Target: ₹44.00 ▼(-11.75% Downside)
• Action: Upgraded Date: 10/23/25
• Date: Action: Upgraded 10/23/25

Motherson Sumi Wiring India Ltd scores well due to its strong financial performance, characterized by robust revenue growth and profitability. The technical analysis supports a moderate bullish outlook, with the stock trading above key moving averages. However, the high P/E ratio suggests potential overvaluation, limiting upside potential. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Sustained top-line growth reflects successful program wins and scale in serial production. Higher revenues from 82.74bn to 92.72bn indicate expanding OEM content exposure and portfolio traction, supporting durable cash generation and capacity utilization over the medium term.

Strong Margins

Robust gross and operating margins indicate efficient manufacturing and pricing power on content-rich wiring harnesses. These margins support reinvestment for new programs and buffer raw material cycles, underpinning sustainable profitability across vehicle cycles over several months to years.

Low Leverage & High ROE

Very low leverage and a high return on equity provide financial flexibility for capex, program ramp funding, and potential strategic investments. A strong balance sheet reduces refinancing risk and helps sustain long-term operational commitments to OEM programs.

Negative Factors

Negative EPS Growth

A meaningful decline in EPS signals earnings volatility despite revenue gains; this can reflect margin squeeze, one-time items, or rising costs. Persistent negative EPS growth would limit retained earnings, constrain strategic reinvestment, and weaken earnings quality over multiple quarters.

Weak FCF Conversion

Although FCF is positive, conversion of net income to free cash is low (0.32), reducing internal funding for program launches and capex. Weak conversion limits flexibility to scale operations, return capital, or absorb cyclical downturns without relying on external financing.

OEM & Program Concentration Risk

Revenue dependence on OEM production cycles and program wins creates structural cyclicality and concentration risk. Loss of platform awards or prolonged OEM production weakness can materially reduce volumes and utilization, pressuring margins and growth persistence.

Motherson Sumi Wiring India Ltd Business Overview & Revenue Model

Company Description

Motherson Sumi Wiring India Limited provides wiring harness solutions to original equipment manufacturers in India. It manufactures, assembles, delivers integrated electrical and electronic distribution systems for power supply and data transfer across vehicle types. The company also provides integrated electrification solutions for vehicles with alternative powertrains, including high-voltage wire harnesses.; and develops solutions for internal combustion engine vehicles, as well as electric and hybrid vehicles. It offers digital assembly boards, colour detection systems, component presence sensors, and online work instructions. The company manufactures and supplies wiring harnesses for passenger cars, two-wheelers and recreational vehicles, commercial vehicles (heavy, medium, and light-duty), motorcycles and three-wheelers to multi-utility vehicles, farm and material-handling equipment, and off-highway vehicles. It also offers specialized wiring harnesses for consumer durables, office automation equipment, medical diagnostic equipment, and other electrical and electronic equipment. Motherson Sumi Wiring India Limited is headquartered in Noida, India. Motherson Sumi Wiring India Limited is a subsidiary of Motherson Sumi Systems Limited.

How the Company Makes Money

MSUMI makes money by manufacturing and selling vehicle wiring harnesses and electrical distribution assemblies to automotive OEM customers, typically under long-term supply arrangements tied to specific vehicle platforms/programs. Revenue is primarily generated from (1) serial production supplies: recurring sales of wiring harnesses and related assemblies delivered in large volumes to OEM production lines, with unit pricing linked to bill-of-materials content, customer specifications, and program-level commercial terms; and (2) program launches and engineering-linked supplies: earnings associated with new vehicle programs where MSUMI develops/manufactures harness variants and begins supplying at start-of-production, after which revenue scales with the OEM’s production volumes. Key factors influencing earnings include OEM vehicle production levels, the number of vehicle platforms/programs awarded to MSUMI, changes in wiring content per vehicle (e.g., higher electrical/electronic content), input-cost movements and pass-through mechanisms where contractually applicable, and operational efficiency in labor-intensive harness manufacturing. Specific details on customer-wise concentration, named partnerships, contract structures (e.g., explicit cost-plus vs. fixed price), and segment-wise revenue splits are null.

Motherson Sumi Wiring India Ltd Financial Statement Overview

Summary

Motherson Sumi Wiring India Ltd demonstrates strong financial health with robust revenue growth and profitability indicators. The company maintains a solid balance sheet with low leverage, enhancing financial stability. Cash flow management is adequate, though there is room for improving free cash flow generation.

Income Statement

Motherson Sumi Wiring India Ltd shows strong performance in terms of revenue growth, with a robust revenue increase from 82.74 billion to 92.72 billion from 2024 to 2025. The gross profit margin stands at 34.46%, indicating efficient cost management. The net profit margin of 6.53% is moderate, but the EBIT margin of 17.17% and EBITDA margin of 10.75% demonstrate solid profitability. Overall, the income statement reflects a healthy growth trajectory and profitability.

Balance Sheet

The company's balance sheet is strong, with a debt-to-equity ratio of 0.16, showing low leverage and financial stability. The return on equity (ROE) is approximately 35.68%, indicating efficient use of equity. However, the equity ratio of 45.55% suggests moderate reliance on liabilities. The balance sheet reflects stability and low financial risk.

Cash Flow

The cash flow statement indicates positive free cash flow, with a slight decline from the previous year but still positive at 1.93 billion. The operating cash flow to net income ratio is 0.60, suggesting that net income is well-supported by cash flow. The free cash flow to net income ratio is 0.32, highlighting potential areas for improvement. Overall, cash flow management is adequate, with room for enhancement in free cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	95.86B	92.72B	82.74B	70.23B	55.87B	39.37B
Gross Profit	33.20B	31.95B	27.33B	22.79B	19.09B	6.66B
EBITDA	9.99B	9.97B	10.20B	8.04B	6.95B	5.77B
Net Income	6.00B	6.06B	6.38B	4.87B	4.11B	3.96B
Balance Sheet
Total Assets	0.00	37.29B	31.39B	28.98B	25.62B	17.89B
Cash, Cash Equivalents and Short-Term Investments	2.37B	2.37B	2.67B	447.50M	2.96B	373.00M
Total Debt	0.00	2.69B	2.59B	3.73B	2.83B	963.00M
Total Liabilities	-16.98B	20.30B	14.62B	15.67B	14.47B	10.80B
Stockholders Equity	16.98B	16.98B	16.77B	13.30B	11.15B	7.10B
Cash Flow
Free Cash Flow	0.00	1.93B	6.80B	250.00M	3.99B	-294.00M
Operating Cash Flow	0.00	3.65B	7.91B	2.24B	5.01B	71.00M
Investing Cash Flow	0.00	-600.90M	-2.08B	-1.94B	-1.01B	-281.00M
Financing Cash Flow	0.00	-4.57B	-4.52B	-2.87B	-1.44B	293.00M

Motherson Sumi Wiring India Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 49.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MSUMI, the sentiment is Negative. The current price of 49.86 is above the 20-day moving average (MA) of 42.59, above the 50-day MA of 44.58, and above the 200-day MA of 43.87, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 37.20 is Neutral, neither overbought nor oversold. The STOCH value of 53.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MSUMI.

Motherson Sumi Wiring India Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSUMI	71 Outperform	₹270.17B	53.83	―	1.24%	13.60%	-23.62%
VARROC	69 Neutral	₹76.09B	-220.37	―	0.16%	7.38%	-73.62%
SHARDAMOTR	66 Neutral	₹47.79B	16.59	―	2.75%	6.96%	6.33%
LUMAXTECH	66 Neutral	₹102.59B	31.91	―	0.35%	36.70%	36.24%
JBMA	64 Neutral	₹123.39B	67.30	―	0.15%	7.63%	11.25%
V2RETAIL	62 Neutral	₹71.25B	20.98	―	―	65.91%	139.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Motherson Sumi Wiring India Ltd Corporate Events

Motherson Sumi Wiring India Gets Independent ESG Score of 70

Motherson Sumi Wiring India Limited has received an ESG rating of 70 from NSE Sustainability Ratings & Analytics, reflecting its performance across environmental, social and governance parameters as evaluated by the agency. The assessment was conducted independently by NSE Sustainability using publicly available data, indicating external recognition of the company’s sustainability profile and providing investors with an additional benchmark on its non-financial performance.

The company clarified that it did not engage NSE Sustainability for this rating, underscoring that the evaluation is an unsolicited, third-party view rather than a commissioned assessment. This disclosure under SEBI’s listing regulations enhances transparency for shareholders and may influence stakeholders’ perception of the company’s ESG positioning within the broader automotive components sector.

Motherson Sumi Wiring India Publishes Q3 FY26 Investor Call Transcript

Motherson Sumi Wiring India Limited has released the transcript of its investor conference call discussing unaudited financial results for the third quarter and nine months ended December 31, 2025. The company has made the full transcript available on its website, enhancing disclosure and accessibility for investors and other stakeholders seeking detailed insights into its recent financial performance and management commentary.