Why is Motherson Sumi Wiring India Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate 7.09% of over the last 5 years
2
Negative results in Dec 24
- PAT(Q) At Rs 139.98 cr has Fallen at -15.2 %
- PBDIT(Q) Lowest at Rs 237.58 cr.
- OPERATING PROFIT TO NET SALES (Q) Lowest at 10.33%
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 07-Apr-25 and has generated 5.39% returns since then
- A key technical factor - Bollinger Band has been Bearish since 07 Apr 2025
4
With ROCE of 47.7, it has a Expensive valuation with a 12.4 Enterprise value to Capital Employed
- 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 -23.03%, its profits have risen by 8% ; the PEG ratio of the company is 4.5
5
Below par performance in long term as well as near term
- Along with generating -23.03% returns in the last 1 year, the stock has also underperformed BSE 500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Ancillary)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Motherson Wiring for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Motherson Wiring
-22.79%
-0.94
24.43%
SENSEX
0.45%
0.04
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
18.15%
EBIT Growth (5y)
7.09%
EBIT to Interest (avg)
33.40
Debt to EBITDA (avg)
0.37
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
4.03
Tax Ratio
24.37%
Dividend Payout Ratio
55.41%
Pledged Shares
0
Institutional Holding
26.60%
ROCE (avg)
45.07%
ROE (avg)
41.51%
Valuation Key Factors 
Factor
Value
P/E Ratio
36
Industry P/E
28
Price to Book Value
14.01
EV to EBIT
27.05
EV to EBITDA
22.51
EV to Capital Employed
12.40
EV to Sales
2.53
PEG Ratio
4.46
Dividend Yield
2.54%
ROCE (Latest)
47.66%
ROE (Latest)
39.09%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
1What is working for the Company
NO KEY POSITIVE TRIGGERS
-8What is not working for the Company
PAT(Q)
At Rs 139.98 cr has Fallen at -15.2 %
PBDIT(Q)
Lowest at Rs 237.58 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 10.33%
PBT LESS OI(Q)
Lowest at Rs 184.06 cr.
EPS(Q)
Lowest at Rs 0.32
Loading Valuation Snapshot...
Here's what is not working for Motherson Wiring
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 184.06 cr has Fallen at -13.9 %
over average PBT of the previous four quarters of Rs 213.85 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 139.98 cr has Fallen at -15.2 %
over average PAT of the previous four quarters of Rs 165.06 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 237.58 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 10.33%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 184.06 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.32
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)