Buy Motherson Sumi Wiring India, target price Rs 73: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Motherson Sumi Wiring India with a target price of Rs 305. The current market price of Motherson Sumi Wiring India is Rs 51.65.

Motherson Sumi Wiring India, incorporated in the year 2020, is a Small Cap company (having a market cap of Rs 22658.18 Crore) operating in General sector.

Motherson Sumi Wiring India key Products/Revenue Segments include Cables & Wires, Other Operating Revenue, Sale of services and Scrap for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Standalone Total Income of Rs 1687.52 Crore, down -8.58 % from last quarter Total Income of Rs 1845.93 Crore and up 14.99 % from last year same quarter Total Income of Rs 1467.51 Crore. Company has reported net profit after tax of Rs 106.16 Crore in latest quarter.

The company’s top management includes Mr.Vivek Chaand Sehgal, Mr.Norikatsu Ishida, Mr.Laksh Vaaman Sehgal, Mr.Rajesh Kumar Seth, Col.(Retd.)Virendra Chand Katoch, Mr.Anupam Mohindroo, Ms.Geeta Mathur, Mr.Arjun Puri, Mr.Anurag Gahlot, Mr.Yoshio Matsushita. Company has S R Batliboi & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 442 Crore shares outstanding.

Investment Rationale
The stock trades at 28.2x/23.5x FY24E/25E EPS. The brokerage believes it deserves rich valuations due to its strong competitive positioning, top decile capital efficiencies, and it being a beneficiary of EVs and other mega trends in Autos.

Promoter/FII Holdings
Promoters held 61.73 per cent stake in the company as of 31-Dec-2022, while FIIs owned 11.03 per cent, DIIs 18.26 per cent.