Should I buy Motherson Sumi stock in India in 2025?
Is it the right time to buy Motherson Sumi?
Motherson Sumi, a flagship in India's auto ancillaries sector, is currently trading around ₹154 on the NSE, with average daily volumes exceeding 6 million shares – reflecting robust investor engagement. Despite reporting a net profit dip of 22.7% in Q4 FY25 due to margin pressures, the company’s quarterly revenue rose by over 8%, underlining its operational resilience. Market sentiment remains constructive and moderately optimistic, buoyed by a strong order book (worth $83.9 billion) and continued growth in the electric and global automotive markets. Motherson Sumi's leadership position as the country's largest auto component supplier and its global expansion through strategic acquisitions, like Reydel Automotive, are valued positively. The company’s technological depth, particularly in EV components, and its joint ventures, continue to shape long-term prospects. In the context of a gradually recovering auto sector, this diversified exposure and international standing resonate well with both domestic and global investors. The consensus target price, as set by more than 13 national and international banks, stands at ₹200—a level that encapsulates renewed confidence in Motherson Sumi’s fundamentals while accounting for ongoing sectoral shifts.
- ✅India's largest auto ancillaries player with global top 15 ranking.
- ✅Strong revenue and sales growth, outpacing sector averages in past year.
- ✅Extensive global order book and growing international presence.
- ✅Active in high-growth segments like electric vehicles and advanced components.
- ✅Successful track record of value-accretive acquisitions and partnerships.
- ❌Recent volatility in quarterly profits underscores sensitivity to margin pressures.
- ❌Exposure to cyclical automotive industry trends may induce short-term fluctuations.
- ✅India's largest auto ancillaries player with global top 15 ranking.
- ✅Strong revenue and sales growth, outpacing sector averages in past year.
- ✅Extensive global order book and growing international presence.
- ✅Active in high-growth segments like electric vehicles and advanced components.
- ✅Successful track record of value-accretive acquisitions and partnerships.
Is it the right time to buy Motherson Sumi?
- ✅India's largest auto ancillaries player with global top 15 ranking.
- ✅Strong revenue and sales growth, outpacing sector averages in past year.
- ✅Extensive global order book and growing international presence.
- ✅Active in high-growth segments like electric vehicles and advanced components.
- ✅Successful track record of value-accretive acquisitions and partnerships.
- ❌Recent volatility in quarterly profits underscores sensitivity to margin pressures.
- ❌Exposure to cyclical automotive industry trends may induce short-term fluctuations.
- ✅India's largest auto ancillaries player with global top 15 ranking.
- ✅Strong revenue and sales growth, outpacing sector averages in past year.
- ✅Extensive global order book and growing international presence.
- ✅Active in high-growth segments like electric vehicles and advanced components.
- ✅Successful track record of value-accretive acquisitions and partnerships.
- What is Motherson Sumi?
- The Motherson Sumi stock price
- Our full analysis of the Motherson Sumi stock
- How to buy Motherson Sumi stock in India?
- Our 7 tips for buying Motherson Sumi stock
- The latest news about Motherson Sumi
- FAQ
- On the same topic
Why trust HelloSafe?
At HelloSafe, our expert has been tracking the performance of Motherson Sumi for over three years. Every month, hundreds of thousands of users in India trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Motherson Sumi.
What is Motherson Sumi?
Indicator | Value | Analysis |
---|---|---|
🏳️ Nationality | India | Leading Indian auto components manufacturer with global reach and presence. |
💼 Market | NSE, BSE | Listed on major Indian exchanges; ensures strong investor accessibility and liquidity. |
🏛️ ISIN code | INE775A01035 (SAMIL), INE0FS801015 (MSWIL) | Distinct ISINs for main group and wiring subsidiary, both tradeable in India. |
👤 CEO | Rajesh Thakur | Steering the company through global expansion and new technology initiatives. |
🏢 Market cap | ₹1,08,310 crores (SAMIL); ₹26,659 crores (MSWIL) | Reflects industry leadership and diversified business segments under the group. |
📈 Revenue | ₹29,317 crores (Q4 FY25 SAMIL); ₹1,670 crores (Q1 FY25 MSWIL*) | Demonstrates robust sales growth despite cyclical industry pressures. |
💹 EBITDA | ₹2,820 crores (Q4 FY25 SAMIL); ₹267 crores (Q1 FY25 MSWIL*) | Healthy EBITDA points to operational efficiency and scale in both entities. |
📊 P/E Ratio (Price/Earnings) | 28.5 (SAMIL); 44.0 (MSWIL) | SAMIL at a reasonable valuation; MSWIL’s higher P/E reflects its strong earnings growth. |
The Motherson Sumi stock price
The price of Motherson Sumi stock is showing stability this week. Currently trading at ₹154, the stock has dropped 0.25% in the last 24 hours and has moved -26% over the past year. Market capitalization stands at ₹1,08,310 crores, with a 3-month average daily volume reflecting strong investor interest. The stock has a P/E ratio of 28.5, a dividend yield of 0.55%, and a beta signaling moderate volatility. This combination of resilience and liquidity may offer compelling opportunities for investors seeking both growth and diversification.
Our full analysis of the Motherson Sumi stock
Having reviewed Motherson Sumi’s latest financial results and stock performance over the past three years, we combined an array of financial indicators, technical signals, peer benchmarks, and market data using our proprietary algorithms. Our rigorous approach brings together multiple dimensions of analysis to present the most actionable insights. So, why might Motherson Sumi stock once again become a strategic entry point into the global automotive technology sector in 2025?
Recent performance and market context
Motherson Sumi has navigated significant market shifts in the past year. The stock currently trades at ₹154, representing a 26% decline over the last 12 months—a period marked by cyclical headwinds and sector volatility. Yet, this correction now places the stock near a key support level and is widely interpreted as a healthy consolidation phase rather than a structural weakness. The company’s market cap remains robust at ₹1,08,310 crores, reaffirming its standing as India’s top auto ancillary giant and a globally significant automotive supplier. Recent quarters have seen steady revenue growth despite margin pressures, with Samvardhana Motherson International (SAMIL) reporting ₹29,317 crores in Q4 FY25, and Motherson Sumi Wiring India (MSWIL)—the wiring harness specialist—outperforming consensus with a 21% jump in Q1 net profit. These positive earnings surprises, alongside strategic acquisitions and continued innovation, have boosted investor confidence as India’s auto sector rebounds and global demand for advanced components accelerates.
The broader Indian macroenvironment and global auto recovery increasingly favour industry leaders. As governments incentivise EV adoption, ramp up infrastructure and promote local manufacturing, established players like Motherson Sumi are well poised to capitalise. The group’s size, access to capital, and multi-continent presence strengthen its ability to weather short-term cycles and capture long-term growth.
Technical analysis
From a technical viewpoint, Motherson Sumi’s recent price action signals opportunity for constructive entries. The 14-day RSI hovers around 54—an equilibrium zone typically seen prior to directional momentum shifts—while the MACD shows only a slight bearish trace, suggesting limited downside risk and a foundation for potential reversal. The share price sits just above the strong support band at ₹145-147, with resistance looming at ₹160-165. This tight trading range, following months of consolidation, hints at a high-probability move if positive catalysts materialise.
Notably, longer-term moving averages have begun to converge and flatten—a frequent harbinger of trend reversals—offering technical traders clear reference points. For MSWIL (₹60.3), similar dynamics persist, with key support at ₹52-53 and resistance at ₹62-65. In both cases, the risk/reward profile appears skewed in favour of upside moves, especially as order momentum and operating leverage become visible.
In sum, Motherson Sumi’s technical structure in mid-2025 reflects a market consensus of “wait and watch,” but with multiple indicators arguing for a constructive re-rating should upcoming results and macro developments surprise to the upside.
Fundamental analysis
Motherson Sumi’s investment narrative rests firmly on breadth, innovation, and leadership. The SAMIL entity—India’s largest auto component firm and among the world’s top 15 automotive suppliers—has reported consistent sales growth: Q4 FY25 topline improved by 8.35% year-over-year to ₹29,317 crores, demonstrating resilience in diverse market conditions. While net profit dipped to ₹1,115 crores (down 22.7%), this was primarily due to cyclical raw material price pressures and integration costs tied to recent acquisitions. These setbacks are widely seen as transitory, with robust fundamentals supporting a strong bounce-back.
The stock is attractively priced at a P/E of 28.5, a prudent level given its global reach, double-digit ROCE (13.9%), and nearly 14% ROE. Shareholder returns have also been supported by an improving dividend policy (0.55% yield) and steady book value growth. MSWIL stands out with even more impressive metrics: a P/E of 44, outstanding ROCE (42.5%), and exceptional ROE (35.9%), reflecting high-margin leadership in vehicle wiring solutions.
Strategically, the group’s $83.9 billion open orderbook and recent acquisition of Reydel Automotive for $201 million underscore its aggressive expansion and capability to scale inorganically. Multi-decade partnerships—most notably the Sumitomo JV in MSWIL—plus 21 completed acquisitions, embed Motherson Sumi deeply in global OEM supply chains across segments and continents.
- Deep vertical integration (mirrors, modules, harnesses)
- Technological leadership in advanced and EV-related solutions
- Five-year profit CAGR of 27%
- Strong relationship with global automakers
These factors reinforce the notion that current valuation does not fully reflect the company’s fundamental strengths and prospective growth.
Volume and liquidity
Motherson Sumi’s liquidity profile is universally acknowledged as a pillar of its stability and attractiveness. With a 3-month average volume supporting fluid daily trades, the group remains a favourite among institutional and retail investors alike. The abundant free float—comprising 58.13% promoter holding, 12.42% FII, and 20.96% DII—ensures dynamism and reduces the prospect of price manipulation or illiquidity.
This sustained trading interest is further encouraged by the company’s regular index inclusion and strong ETF flows, both of which anchor the valuation and provide ballast during market corrections. The market capitalisation firmly places Motherson Sumi among India’s most prominent and influential blue chips in manufacturing and technology.
Catalysts and positive outlook
- Transition to electric vehicles (EVs): Motherson Sumi’s pioneering investments in EV wiring and battery systems, combined with R&D in lightweight and advanced polymer modules, make it the vendor of choice for global carmakers shifting to green mobility.
- Geographical expansion: Its growing European, American, and Asian presence drives both diversification and de-risking, while increasing wallet share with global auto majors.
- Innovation and ESG: The group’s emphasis on energy efficiency, sustainable components, and green manufacturing aligns with global regulatory trends and enhances long-term demand.
- Orderbook and partnerships: $83.9 billion in outstanding contracts and strengthened alliances (Sumitomo partnership, new OEM wins) lay a solid revenue pipeline.
- M&A activity: Recent and likely future acquisitions expand technological capabilities and customer reach, amplifying cross-selling and margin improvement.
The medium- to long-term demand for auto ancillaries is projected to rise as post-pandemic mobility normalises and EV adoption accelerates. Motherson Sumi’s deep OEM ties and innovation edge favour outperformance in this environment.
Investment strategies
- Short-term: Active traders may find swing opportunities near ₹145-147 support, using the ₹160 resistance as an upside target ahead of key earnings or new order announcements.
- Medium-term: The consolidation period, stabilising input costs, and pipeline of post-acquisition synergies offer scope for significant re-rating over the next 6 to 12 months.
- Long-term: Strategic investors benefit from secular trends: EV supply chain exposure, global diversification, and superior return metrics. Dollar-cost averaging here could harness both growth runway and market corrections.
Portfolio positioning can favour scaling up on weakness, especially as sector sentiment and policy tailwinds favour market leaders. Investing ahead of major auto show launches, new plant inaugurations, or product rollouts could magnify returns as these events often herald upgrades and fund inflows.
Is it the right time to buy Motherson Sumi?
In conclusion, Motherson Sumi appears exceptionally well positioned for the upcycle in global auto technology. Its powerful blend of diversified revenues, operational excellence, innovative technologies, and dominant market share provide resilience in every phase of the industry cycle. The current price consolidation—backed by robust cash flows, high corporate governance, and a stable dividend—seems to represent an excellent opportunity to build exposure in a flagship stock for India’s industrial growth.
With sector catalysts, global partnerships, and a best-in-class orderbook converging at a time of renewed auto sector optimism, the fundamentals justify renewed interest. For investors seeking a strategic foothold in the transformation of mobility and technology, Motherson Sumi’s risk-reward profile is compelling, making it a stock that confidently deserves consideration for growth-focused portfolios.
How to buy Motherson Sumi stock in India?
Investing in Motherson Sumi stock online is straightforward and secure with any reputed, regulated broker in India. You can choose to own shares directly (spot buying) or trade via CFDs, which lets you speculate on price movements using leverage. Both approaches suit different styles and objectives. For a comparison of brokerage platforms and their features, check out the broker comparison tool further down the page.
Spot buying
A cash purchase of Motherson Sumi stock means you buy and hold real shares in your demat account on the NSE or BSE. Most brokers charge a fixed commission per order, typically around ₹100–₹200, plus minor regulatory charges.
Gain scenario
If the Motherson Sumi share price is ₹154 and you invest $1,000 (around ₹83,000), you can buy about 538 shares, including a brokerage fee of about $5.
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% return on your investment.
Trading via CFD
CFDs (Contracts for Difference) let you trade Motherson Sumi shares by speculating on their price without holding the actual stock. CFD trading involves fees like the spread (difference between buy and sell prices) and possible overnight financing charges if you keep the position open for several days.
CFD Gain Scenario with Leverage
You open a CFD position on Motherson Sumi shares with 5x leverage and invest $1,000. This gives you market exposure of $5,000.
Gain scenario: If the stock rises by 8%, your leveraged position increases 8% × 5 = 40%. Result: +$400 gain, on your $1,000 outlay (excluding trading costs).
Final advice
Before you buy, it is essential to compare broker commissions, trading terms, and other features—our broker comparison guide can help with this, just below. Whether you prefer share ownership or leveraged trading, your best method depends on your goals and risk appetite.
Check out the best brokers in India!Compare brokersOur 7 tips for buying Motherson Sumi stock
📊 Step | 📝 Specific tip for Motherson Sumi |
---|---|
Analyze the market | Examine the growth of the Indian auto sector and the global shift to electric vehicles, which directly impacts demand for Motherson Sumi products. |
Choose the right trading platform | Use a trustworthy Indian brokerage that offers easy access to NSE/BSE, robust research tools, and competitive brokerage fees for Motherson Sumi. |
Define your investment budget | Allocate funds responsibly, keeping in mind Motherson Sumi’s position in your portfolio and diversifying with other sectors if needed. |
Choose a strategy (short or long term) | Consider a long-term approach to benefit from Motherson Sumi’s expanding international footprint and strategic acquisitions. |
Monitor news and financial results | Follow quarterly earnings, new order announcements, and Motherson Sumi’s progress in electric mobility to identify smart buy opportunities. |
Use risk management tools | Implement stop-loss and target price orders to manage downside risk and protect your capital when trading Motherson Sumi. |
Sell at the right time | Review technical indicators and key company events; consider booking profits near resistance levels or after strong news for Motherson Sumi. |
The latest news about Motherson Sumi
Motherson Sumi Wiring India delivers robust Q1 FY25 earnings, with net profit rising by 21% year-on-year. The company reported a stronger-than-expected quarterly net profit of ₹149 crores for Q1 FY25, reflecting healthy demand in the domestic automotive market and an uptick in vehicle production which benefits its wiring harness business.
Samvardhana Motherson International achieves 8.35% revenue growth in Q4 FY25, signaling steady expansion in India. Despite a year-on-year dip in quarterly net profit, revenue for the parent company climbed to ₹29,317 crores, highlighting resilient topline growth and ongoing order inflows from Indian and global automotive OEMs.
Recent technical indicators for both Motherson Sumi stocks show support at key price levels on NSE and BSE. For SAMIL, strong technical support has formed around ₹145–147, while MSWIL finds robust investor interest between ₹52–53, improving price stability and supporting further accumulation by Indian investors.
The group strengthens its leadership in India’s auto supply chain, securing industry-leading market share and new partnerships. Motherson Sumi confirms its position as the top wiring harness supplier for Indian passenger car manufacturers, while the parent company maintains its role among the world's top automotive component suppliers and expands collaborations with key players.
Domestic institutional investors maintain strong holdings, underpinning confidence in the group’s growth outlook on Indian markets. SAMIL's promoter and DIIs collectively hold nearly 79% of share capital, signaling enduring support from Indian backers. This institutional confidence helps foster market resilience and underpins the stock’s medium-term investment appeal.
FAQ
What is the latest dividend for Motherson Sumi stock?
Motherson Sumi currently pays a dividend. For Samvardhana Motherson International (NSE: MOTHERSON), the latest annual dividend yield is modest, with a recent payout of approximately ₹0.85 per share, and for Motherson Sumi Wiring India (NSE: MSUMI), the yield is higher with a ₹0.85 per share payment. Dividends are usually distributed annually, reflecting the company’s stable cash flow and long-term shareholder commitment.
What is the forecast for Motherson Sumi stock in 2025, 2026, and 2027?
Based on the current SAMIL share price of ₹154, the projected value would be ₹200 at the end of 2025, ₹231 in 2026, and ₹308 by 2027. These estimates reflect ongoing expansion, robust partnerships, and strong momentum due to electric vehicle adoption and global market penetration.
Should I sell my Motherson Sumi shares?
Given Motherson Sumi’s resilient strategy, strong presence in India, and continued global expansion, holding the shares remains an attractive option for long-term investors. The company’s leadership in auto components and ability to adapt to industry transitions underpins steady growth potential. Maintaining your investment may be wise, particularly with improving fundamentals and industry prospects.
How are dividends and capital gains from Motherson Sumi stock taxed in India?
Dividends from Motherson Sumi are taxed as per your income tax slab, without withholding for Indian residents. Long-term capital gains above ₹1 lakh are taxed at 10%, while short-term gains attract a 15% rate. The shares are eligible for inclusion in Indian savings and demat accounts, and reporting in your annual tax return is mandatory.
What is the latest dividend for Motherson Sumi stock?
Motherson Sumi currently pays a dividend. For Samvardhana Motherson International (NSE: MOTHERSON), the latest annual dividend yield is modest, with a recent payout of approximately ₹0.85 per share, and for Motherson Sumi Wiring India (NSE: MSUMI), the yield is higher with a ₹0.85 per share payment. Dividends are usually distributed annually, reflecting the company’s stable cash flow and long-term shareholder commitment.
What is the forecast for Motherson Sumi stock in 2025, 2026, and 2027?
Based on the current SAMIL share price of ₹154, the projected value would be ₹200 at the end of 2025, ₹231 in 2026, and ₹308 by 2027. These estimates reflect ongoing expansion, robust partnerships, and strong momentum due to electric vehicle adoption and global market penetration.
Should I sell my Motherson Sumi shares?
Given Motherson Sumi’s resilient strategy, strong presence in India, and continued global expansion, holding the shares remains an attractive option for long-term investors. The company’s leadership in auto components and ability to adapt to industry transitions underpins steady growth potential. Maintaining your investment may be wise, particularly with improving fundamentals and industry prospects.
How are dividends and capital gains from Motherson Sumi stock taxed in India?
Dividends from Motherson Sumi are taxed as per your income tax slab, without withholding for Indian residents. Long-term capital gains above ₹1 lakh are taxed at 10%, while short-term gains attract a 15% rate. The shares are eligible for inclusion in Indian savings and demat accounts, and reporting in your annual tax return is mandatory.