Why is Motherson Sumi Wiring India Ltd ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 35.94%
- Healthy long term growth as Net Sales has grown by an annual rate of 18.94%
- Company has a Debt to Equity ratio (avg) of 0.07 times
2
Flat results in Jun 26
- ROCE(HY) Lowest at 35.41%
- DEBTORS TURNOVER RATIO(HY) Lowest at 6.07 times
- PBT LESS OI(Q) At Rs 190.00 cr has Fallen at -7.1% (vs previous 4Q average)
3
With ROE of 29, it has a Attractive valuation with a 12.6 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 7.47%, its profits have risen by 4.6% ; the PEG ratio of the company is 9.5
4
High Institutional Holdings at 26.78%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
How much should you hold?
- Overall Portfolio exposure to Motherson Wiring should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Motherson Wiring for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Motherson Wiring
7.47%
0.23
32.15%
Sensex
-2.63%
-0.19
13.57%
Quality key factors
Factor
Value
Sales Growth (5y)
18.94%
EBIT Growth (5y)
5.04%
EBIT to Interest (avg)
28.23
Debt to EBITDA (avg)
0.33
Net Debt to Equity (avg)
0.08
Sales to Capital Employed (avg)
4.26
Tax Ratio
24.19%
Dividend Payout Ratio
25.54%
Pledged Shares
0
Institutional Holding
26.78%
ROCE (avg)
44.03%
ROE (avg)
35.94%
Valuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
38
Price to Book Value
12.59
EV to EBIT
32.33
EV to EBITDA
25.49
EV to Capital Employed
11.78
EV to Sales
2.21
PEG Ratio
9.52
Dividend Yield
1.41%
ROCE (Latest)
36.30%
ROE (Latest)
29.02%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Movement
6What is working for the Company
NET SALES(9M)
At Rs 9,628.95 cr has Grown at 31.83%
-7What is not working for the Company
ROCE(HY)
Lowest at 35.41%
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.07 times
PBT LESS OI(Q)
At Rs 190.00 cr has Fallen at -7.1% (vs previous 4Q average
PAT(Q)
At Rs 145.32 cr has Fallen at -7.0% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for Motherson Wiring
Net Sales - Quarterly
Highest at Rs 3,407.26 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Here's what is not working for Motherson Wiring
Debtors Turnover Ratio- Half Yearly
Lowest at 6.07 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 190.00 cr has Fallen at -7.1% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 204.49 CrMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 145.32 cr has Fallen at -7.0% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 156.30 CrMOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)






