Buy Motherson Sumi Wiring India, target price Rs 80: Emkay Global

Emkay Global Financial Services has buy call on Motherson Sumi Wiring India Ltd. with a target price of Rs 80.
The current market price of Motherson Sumi Wiring India Ltd. is Rs 62.3 Time period given by analyst is year when Motherson Sumi Wiring India Ltd. price can reach defined target. .

Investment Rationale
The brokerage expects MSUMI to sustain ROIC at 50%+ over FY23-24E. Retain Buy with a DCFbased TP of Rs80 (earlier Rs85), implying a multiple of 32x on Jun’24E EPS (earlier 35x Mar’24E EPS). It reduces the target multiple due to an increase in the cost of equity.


Promoter/FII Holdings
Promoters held 61.73 per cent stake in the company as of 31-Mar-2022, while FIIs owned 14.89 per cent, DIIs 13.43 per cent.