Motherson Sumi Wiring India Downgraded to 'Hold' by MarketsMOJO: A Closer Look at the Company's Performance.

Motherson Sumi Wiring India, a leading auto ancillary company in the largecap category, has recently been downgraded to a 'Hold' by MarketsMOJO. This decision is based on the company's current performance and future potential.
Despite having a strong long-term fundamental strength with an average Return on Capital Employed (ROCE) of 47.74%, the company's technical trend has deteriorated from Mildly Bullish to Sideways, indicating no clear price momentum. Additionally, the stock has underperformed the market in the last year, generating a return of only 4.16% compared to the market's 32.75%.

However, Motherson Sumi Wiring India has shown healthy long-term growth with an annual growth rate of 18.10% in Net Sales. The company also has a strong ability to service debt with a low Debt to EBITDA ratio of 0.22 times. In the last 4 consecutive quarters, the company has declared positive results, with a growth of 30.09% in PAT (HY) and a Debtors Turnover Ratio (HY) of 9.24 times, the highest among its peers.

With a ROE of 39.6 and a Price to Book Value of 18.4, the stock is currently trading at a discount compared to its average historical valuations. Moreover, the company has high institutional holdings at 27.01%, indicating that these investors have better capability and resources to analyze the company's fundamentals.

Overall, while Motherson Sumi Wiring India has shown strong long-term growth and a healthy financial position, its current technical trend and underperformance in the market may be a cause for concern. Investors are advised to hold onto their positions and monitor the company's performance closely.