Motherson Sumi Wiring India Limited

Consumer Cyclical — Auto Parts · NSE

₹35.40+₹0.44 (+1.26%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Motherson Sumi Wiring India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Motherson Sumi Wiring India Limited engages in the manufacture and sale of components to automotive original equipment manufacturers in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees6,463

Annual revenue₹11,429 Cr

How does it make money?

Turns over ₹11,429 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 6,463 employees supports ₹1.77 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.77 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 35.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 28.9% against a peer median of 23.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE23.0%

What is the outlook?

15 analysts covering the stock expect revenue to grow about 11.9% and earnings to grow about 29.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+11.9%

Est. earnings growth+29.5%

Analysts15

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +63% while net margin moved -21% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+63%

Margin effect-21%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✓ ROCE of 35.4% is above 20% — the business earns a high return on the capital it employs
✗ ROCE has fallen by 6.8 points — returns are eroding
✗ EBITDA margin of 9.3% is thin — little cushion if costs rise
✗ Net margin of 5.1% is slim
• Revenue has compounded at 17.6% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

66/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

49/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

37.3x

3Y Median

47.4x

40 monthly readings · mean 48.3x · range 32.6x–68.5x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 21% below its 3y median of 47.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 18% below the peer median of 45.7x.

vs. its own history

Cheap

47.4x median over 40 months · -21%

vs. sector peers

Fair

45.7x median of 4 peers · -18%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

22.2x

PEG

4.29

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 37% over 3 years.
Cash generation is improving
Free cash flow is up 2140% over 3 years.
High return on capital employed
ROCE of 35.4% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 36.6% to 28.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 42.2% to 35.4% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 135% against revenue up 63% — sales are being booked faster than they are collected.
🟡Margins are compressingFinancial
EBITDA margin is down 2.1 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 35.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 37% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 21% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹560 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 11.4% to 9.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 135% against revenue up 63%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 36.6% to 28.9%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.6% CAGR
Latest reported year was 36.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 9.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹560 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 32%✓ 35.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹23,476 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

37.3x

Fair

Fairly valued against the generic band

P/B Ratio

10.86x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.95

Profitable

Profitable on a per-share basis

ROE

28.9%

Strong

Strong capital efficiency

ROCE

35.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

36.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

0.0%

Modest

Slow profit growth

Dividend Yield

1.64%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹560 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

24.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.9%

Average

Average margins

Net Margin

5.1%

Average

Average bottom-line conversion

Current Ratio

1.62

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.05

Defensive

Steadier than the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

34.3 / 36.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

58.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7,023 Cr	₹8,274 Cr	₹9,272 Cr	₹11,429 Cr	+17.6%
EBITDA	₹803 Cr	₹1,020 Cr	₹1,009 Cr	₹1,063 Cr	+9.8%
EBITDA Margin	11.4%	12.3%	10.9%	9.3%	—
PAT (Net Profit)	₹487 Cr	₹638 Cr	₹606 Cr	₹625 Cr	+8.7%
EPS	₹0.73	₹0.96	₹0.91	₹0.94	+8.6%
ROE	36.6%	38.1%	35.7%	28.9%	—
ROCE	42.2%	45.6%	43.2%	35.4%	—
Total Debt	₹373 Cr	₹259 Cr	₹269 Cr	₹233 Cr	-14.5%
Free Cash Flow	₹25 Cr	₹68 Cr	₹193 Cr	₹560 Cr	+181.9%

🟢 Revenue has grown at 17.6% a year over 3 years.

🟢 EBITDA has grown at 9.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.4% to 9.3% over 3 years (-2.1 pts).

🟢 PAT (Net Profit) has grown at 8.7% a year over 3 years.

🟢 EPS has grown at 8.6% a year over 3 years.

🔴 ROE has fallen from 36.6% to 28.9% over 3 years (-7.7 pts).

🔴 ROCE has fallen from 42.2% to 35.4% over 3 years (-6.8 pts).

🟢 Total Debt has shrunk at 14.5% a year over 3 years.

🟢 Free Cash Flow has grown at 181.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,746 Cr

Total Liabilities

₹2,584 Cr

Cash & Equivalents

₹66 Cr

Operating Cash Flow

₹761 Cr

Capex

-₹201 Cr

Shareholding (proxy)

Institutional Holding

21.1%

Insider Holding

61.7%

Corporate Actions

Next Earnings

05 Nov 2026

Dividend Rate

₹0.58

Ex-Dividend Date

14 Jul 2026

Analyst Consensus

Recommendations

13 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹48.14

+36.0% vs CMP

Target Range

₹38 – ₹60

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive3 mixed2 general

Top 3 stocks to buy under ₹100: IRFC, Motherson Sumi, Lloyds Engineering Works by Sumeet Bagadia | Target price, SL

Livemint, 18 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Motherson Sumi Wiring Share Price: Buy or Sell

Univest, 03 Sept

Motherson Sumi Wiring India Limited Just Missed EPS By 30%: Here's What Analysts Think Will Happen Next

Simply Wall Street, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

MSWIL Q1 Profit Up 1.5% to ₹145 Cr; Revenue Jumps 37%

HDFC Sky, 04 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Volumes jump at Motherson Sumi Wiring India Ltd counter

Business Standard, 25 Jun

Motherson Sumi Wiring India's quarterly profit climbs on steady auto demand

Reuters, 30 JanResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Risk

MiddlingBusiness Quality · Growth · Profitability · Valuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑