Should I buy Motherson Sumi Wiring stock in 2025?
Is Motherson Sumi Wiring stock a buy right now?
Motherson Sumi Wiring India Ltd (MSUMI) stands as a leading player in India’s dynamic auto ancillaries sector, specializing in wiring harness systems for the country’s top automotive brands. As of mid-May 2025, the stock trades at approximately ₹57.41 on the National Stock Exchange, with a notable average daily volume of over 6.1 million shares, underscoring significant investor engagement. Recent quarterly results revealed a robust 7.1% year-on-year revenue increase—outperforming industry averages—while the company achieved record high EBITDA for both the quarter and fiscal year. The net profit did see a manageable dip of 13.85%, primarily due to higher input costs, but the underlying operational momentum remains intact. A new greenfield facility has commenced production, strengthening MSUMI’s ability to support expanding demand for both internal combustion and electric vehicle programs. The mood among market participants has been constructively optimistic, reflecting confidence in MSUMI’s capacity to capture India’s automotive premiumization and electrification trends. The stock’s high valuation (P/E 42) and recent dividend declaration reflect market recognition of its steady growth potential. Against this constructive backdrop, the consensus target price stands at around ₹75, as indicated by more than 32 national and international banks—highlighting room for further upside as MSUMI expands its leadership within the evolving mobility landscape.
- ✅Strong revenue growth, consistently outpacing Indian auto-ancillary industry averages.
- ✅Supplier to 9 of India's top 10 best-selling passenger vehicle models.
- ✅Debt-free company with high ROCE, providing strategic financial flexibility.
- ✅Rapid capacity expansion and operationalization of new greenfield facilities.
- ✅Early mover in vehicle electrification, with EV revenue share growing steadily.
- ❌Recent margin pressures due to higher input costs impacting short-term profitability.
- ❌Valuation premium (high P/E) may limit immediate upside if sector sentiment cools.
- ✅Strong revenue growth, consistently outpacing Indian auto-ancillary industry averages.
- ✅Supplier to 9 of India's top 10 best-selling passenger vehicle models.
- ✅Debt-free company with high ROCE, providing strategic financial flexibility.
- ✅Rapid capacity expansion and operationalization of new greenfield facilities.
- ✅Early mover in vehicle electrification, with EV revenue share growing steadily.
Is Motherson Sumi Wiring stock a buy right now?
- ✅Strong revenue growth, consistently outpacing Indian auto-ancillary industry averages.
- ✅Supplier to 9 of India's top 10 best-selling passenger vehicle models.
- ✅Debt-free company with high ROCE, providing strategic financial flexibility.
- ✅Rapid capacity expansion and operationalization of new greenfield facilities.
- ✅Early mover in vehicle electrification, with EV revenue share growing steadily.
- ❌Recent margin pressures due to higher input costs impacting short-term profitability.
- ❌Valuation premium (high P/E) may limit immediate upside if sector sentiment cools.
- ✅Strong revenue growth, consistently outpacing Indian auto-ancillary industry averages.
- ✅Supplier to 9 of India's top 10 best-selling passenger vehicle models.
- ✅Debt-free company with high ROCE, providing strategic financial flexibility.
- ✅Rapid capacity expansion and operationalization of new greenfield facilities.
- ✅Early mover in vehicle electrification, with EV revenue share growing steadily.
- What is Motherson Sumi Wiring?
- How much is Motherson Sumi Wiring stock?
- Our full analysis on Motherson Sumi Wiring stock
- How to buy Motherson Sumi Wiring stock in India?
- Our 7 tips for buying Motherson Sumi Wiring stock
- The latest news about Motherson Sumi Wiring
- FAQ
- FAQ
What is Motherson Sumi Wiring?
Indicator | Value | Analysis |
---|---|---|
🏳️ Nationality | India | Indian company, well-positioned in a rapidly growing domestic automotive market. |
💼 Market | NSE (National Stock Exchange of India) | Listed on India's main exchange, offering high liquidity and accessibility. |
🏛️ ISIN code | INE0FS001014 | Unique identifier facilitates investment and tracking for both domestic and global investors. |
👤 CEO | Anurag Gahlot | Recent leadership brings opportunities for strategic change and modernization. |
🏢 Market cap | ₹25,655.69 Crore | Large cap indicates scale, stability, and strong market presence among auto suppliers. |
📈 Revenue | ₹2,500.31 Crore (Q4 FY25) | Revenue grew 7.1% YoY, reflecting strong demand and effective market positioning. |
💹 EBITDA | Record high (Q4 FY25) | Achieved all-time high EBITDA, showing strong operational performance and efficiency. |
📊 P/E Ratio (Price/Earnings) | 42.36 | High P/E reflects premium valuation and growth expectations, but may limit upside. |
How much is Motherson Sumi Wiring stock?
The price of Motherson Sumi Wiring stock is rising this week. As of now, the stock trades at ₹57.41, showing a 1.07% drop in the past 24 hours but a robust 9.4% gain over the week. The company’s market capitalization stands at ₹25,655.69 crore, with an average daily volume of 6.1 million shares over the past three months. Motherson Sumi Wiring reports a P/E ratio of 42.36 and offers a dividend yield of 1.39%. The stock’s beta is -0.24, suggesting notably low volatility compared to the broader market. Investors may find the steady upward trend promising, but the premium valuation and recent price swings underline the importance of ongoing market monitoring.
Check out the best brokers in India!Compare brokersOur full analysis on Motherson Sumi Wiring stock
After a rigorous review of Motherson Sumi Wiring India Ltd’s full-year FY2024-25 financial results and a detailed study of its robust performance over the past three years, our analysis, powered by proprietary algorithms and a multifactorial lens—integrating key financial metrics, technical indicators, peer comparisons, and sector trends—brings forth renewed perspective on this auto-ancillaries leader. With a synthesis of recent data and evolving market conditions, the evidence points to dynamic opportunities building around MSUMI. So, why might Motherson Sumi Wiring once again become a strategic entry point for India’s burgeoning automotive technology sector as we approach 2025?
Recent Performance and Market Context
Motherson Sumi Wiring’s stock has displayed remarkable resilience and steady appreciation, with its current price at ₹57.41 as of May 19, 2025—a year-to-date gain of 24.6% and a weekly surge of nearly 9.4%. This performance stands out sharply in the context of India’s broader auto ancillaries sector, where competitive pressures have only intensified. The company’s decisive response to evolving market dynamics is evident:
- Strong Revenue Upswing: Achieving an all-time high quarterly revenue (₹2,500.31 crore) in Q4 FY24-25, up 7.1% YoY, marking consistent outperformance relative to sector averages.
- Fundamental Expansion: New production capacities coming online, notably the commencement of the first of three greenfield facilities, demonstrate tactical scaling to match both current demand and future growth in automotive wiring harnesses.
- End-Market Resilience: As a critical supplier to 9 out of the top 10 bestselling passenger vehicles in India, MSUMI’s entrenched relationships with OEMs insulate it from disruptive sectoral swings.
On a macroeconomic level, India’s automotive sector is powering ahead, buoyed by urbanisation, middle-class expansion, and regulatory incentives (such as PLI schemes) supporting electrification and technology innovation. Motherson Sumi Wiring is strategically positioning itself to benefit from these converging drivers—accelerating its lead in a sector now considered fundamental to India’s industrial future.
Technical Analysis
The technical underpinnings of MSUMI have evolved positively within both short- and medium-term timeframes:
- Momentum and Strength: The Relative Strength Index (RSI) is hovering at 64.81, indicating robust upward momentum but still shy of overbought conditions—a classic signal for potential continued upside.
- Bullish Structure: Price action sits comfortably above key 20-, 50-, and 100-day EMAs (₹56.02, ₹54.76, and ₹55.75, respectively), signaling technical strength and supportive crossovers. Although trading remains marginally below the 200-day EMA (₹58.70), the recent uptrend suggests this resistance could soon be challenged.
- Oscillators Confirming Trend: Both the CCI at 118.86 and STOCH RSI at 0.79 support a powerful, sustained uptrend. The MACD’s current bearish signal (-0.13 vs. signal 0.06) may indicate brief consolidation, potentially setting up for a healthy technical retracement before renewed advances.
- Well-Defined Support: Solid buying interest is visible near the ₹56.98–₹55.29 support band, where previous rebounds have established clear technical floors.
- Near-Term Resistance: Immediate upside targets are located at ₹58.67–₹60.36, levels where breakout buying could rapidly intensify.
These elements when synthesized suggest a bullish structural narrative, with volatility offering strategic entry opportunities—underscored by growing volume and heightened investor participation.
Fundamental Analysis
The intrinsic attributes of Motherson Sumi Wiring strengthen its investment attractiveness:
- Top-line Momentum: Sustained revenue CAGR above industry peers (projected at 8.8%), led by best-ever operational performances, highlight the success of its customer-focused approach and capacity expansion.
- Operational Efficiency: Despite a YoY dip in Q4 net profit (₹164.93 crore, -13.85%), the company delivered record EBITDA and remains fundamentally sound. Notably, the return on capital employed (ROCE) continues to impress at 42%—well above its own 40% benchmark and among the sector's highest.
- Valuation Profile: While the stock trades at a premium P/E of 42.36, this reflects a market consensus on MSUMI’s industry leadership, robust future cash flows, and its ability to deliver quality earnings even in challenging environments.
- Balance Sheet Strength: The company remains debt-free—a rare distinction enabling freedom to invest and innovate, particularly important amid cyclical sector risks and input cost volatility.
- Strategic Partnerships: Backed by its joint venture between Samvardhana Motherson International and Sumitomo Wiring Systems, MSUMI leverages global knowledge, best practices, and a diversified R&D focus. Its full-system solutions model—from design to manufacturing—cements long-term customer stickiness.
- Alignment with Secular Trends: With its growing product mix for electric vehicles (4% of Q4 FY25 revenue), MSUMI is capturing early-mover advantage in premiumisation and electrification, both critical trends for India’s next-gen mobility ecosystem.
Collectively, these factors suggest that current valuation levels—while not “value” in the traditional sense—are solidly underpinned by sustainable growth, operational excellence, and a clear path for margin restoration.
Volume and Liquidity
Market confidence in MSUMI is reflected in consistently strong trading activity, with an average daily volume surpassing six million shares over the past three months—a clear indicator of both institutional and retail engagement. The high float ensures efficient price discovery, creating conducive ground for new or scaled-up positions without excessive slippage or volatility distortion. Such liquidity affirms the market’s view of MSUMI as among the most dynamic and investable names in India’s auto ancillaries landscape.
Catalysts and Positive Outlook
Motherson Sumi Wiring approaches 2025 with a suite of growth accelerants:
- Capacity and Diversification: The ramp-up of new greenfield units, and ongoing investments in both ICE and EV wiring programs, underpin medium-term volume and revenue expansion.
- OEM Partnerships: Continued status as a preferred supplier to the largest automotive OEMs in India confers exceptional visibility and backlog support.
- Electrification & Innovation: The surging share of EV-related revenues highlights increasing alignment with government and industry priorities around sustainable mobility, promising substantial margin upside as this vertical scales.
- Dividend Policy & Capital Discipline: The recent interim dividend and long-term payout consistency add to the total return profile, enhancing attractiveness for both growth and yield-focused investors.
- ESG and Governance: Debt-free operations, prudent capital allocation, and a strong institutional governance framework help position MSUMI as an ESG-conscious investment, resonating with emerging environmental and social mandates in both domestic and international capital markets.
Looking further, macro trends such as vehicle premiumisation, safety and connectivity tech, and regulatory support for indigenised manufacturing all combine to create ongoing tailwinds—each of which directly plays to MSUMI’s strengths in design, scale, and innovation.
Investment Strategies
For investors seeking to capitalise on MSUMI’s structured drive toward leadership in next-generation automotive wiring, several approaches appear compelling:
- Short-Term: The recent retreat following a strong uptrend, coupled with resilient support near the ₹56.98 level, seems to afford a high-conviction technical entry-point, especially as the stock eyes a retest of resistance zones above ₹58.67.
- Medium-Term: With ongoing ramp-up of greenfield capacity and potential margin improvement as input costs stabilise, this period could observe renewed operational leverage. Positioning ahead of upcoming production and earnings catalysts could allow for optimum risk-adjusted returns.
- Long-Term: Investors focused on structural transformations—EVs, premiumisation, OEM partnerships—may find the current price offers an advantageous entry into an undisputed sector leader. The debt-free balance sheet, proven management, and robust ROCE underpin strong value-creation overtime, with the dividend providing a cushion against cyclical headwinds.
In all instances, MSUMI’s liquidity ensures ease in scaling positions, while its fundamental and technical underpinnings suggest a high-probability setup for those seeking outperformance across holding periods.
Is it the Right Time to Buy Motherson Sumi Wiring?
Combining compelling revenue momentum, robust technical structure, operational and strategic leadership, healthy liquidity, and a suite of forward-looking growth catalysts, MSUMI once again appears to be transitioning into a new bullish phase for investors in the Indian tech-enabled auto sector. While short-term margin pressures and a full valuation warrant monitoring, the fundamentals more than justify renewed interest at current levels—with multiple levers for margin improvement and top-line expansion coming into play in the months ahead.
With India’s automotive sector entering an era of accelerated premiumisation and electrification, Motherson Sumi Wiring stands out as both a market leader and a future-ready innovator. The synthesis of technical signals, financial strength, and sector tailwinds suggests this is a stock that deserves the close attention of investors seeking dynamic growth and long-term value creation in India’s evolving mobility landscape.
As 2025 unfolds, MSUMI seems to represent an excellent opportunity for investors aiming to ride India’s next auto growth wave, supported by a unique blend of resilience, strategy, and innovation.
How to buy Motherson Sumi Wiring stock in India?
Buying shares of Motherson Sumi Wiring India Ltd online is both simple and secure, thanks to the digital onboarding processes offered by regulated Indian brokers. Investors can access this stock on the NSE using intuitive trading apps or web platforms. The two primary methods to gain exposure are: buying the stock outright (spot/cash buying), or trading contracts for difference (CFDs), which allow speculation on the price movement without ownership. Each approach has unique benefits and fees—compare them in detail in our broker comparison further down this page.
Cash buying
A cash purchase means you become a direct shareholder of Motherson Sumi Wiring India Ltd, with your shares held in your Demat account. This method is suitable for long-term investors seeking dividend income and voting rights. Typically, Indian brokers charge a fixed commission per order, usually between ₹10 and ₹20, plus a small percentage of the trade amount.
Example
Suppose the Motherson Sumi Wiring share price is ₹57.41. If you invest ₹1,000 (roughly $12 at ₹83/USD) and pay a ₹400 ($5) brokerage fee, you can directly purchase about 17 shares (₹1,000–₹400 in brokerage = ₹600/₹57.41 ≈ 10 shares; but many brokers offer much lower commissions, so realistically, ₹1,000 less ₹15 = ₹985/₹57.41 ≈ 17 shares).
Gain scenario: If the share price rises by 10% to ₹63.15, your shares are now worth ₹1,100.
Result: +₹100 gross gain, a 10% return on your investment.
Trading via CFD
CFDs (Contracts for Difference) allow you to speculate on the upward or downward movements of Motherson Sumi Wiring shares without actually owning the stock. With CFDs, you trade through international brokers, often with leverage available (for example, 5x), which multiplies both potential gains and risks. The main fees here include the spread (difference between buy and sell price) and overnight financing charges if you hold positions beyond a day.
Example
You open a CFD position on Motherson Sumi Wiring with ₹1,000 (about $12), using 5x leverage, giving you market exposure worth ₹5,000 (about $60).
Gain scenario: If the share price increases by 8%, your position gains 8% x 5 = 40%.
Result: That’s a ₹400 profit on a ₹1,000 stake (excluding fees and financing).
Final advice
Before investing in Motherson Sumi Wiring India Ltd—or any stock—carefully compare broker fee structures, minimum deposit requirements, and the features that suit your trading style. Your choice between cash buying and CFD trading should match your goals and risk preference: long-term wealth building with direct ownership, or short-term tactical trading with leverage. For an in-depth comparison of the top brokers in India, see the comparator provided below on this page. Happy investing!
Check out the best brokers in India!Compare brokersOur 7 tips for buying Motherson Sumi Wiring stock
Step | Specific tip for Motherson Sumi Wiring |
---|---|
Analyze the market | Review India’s automotive growth trends, the company’s position as a supplier to top vehicle models, and its entry into EV wire harnesses. |
Choose the right trading platform | Select a SEBI-registered broker with low transaction costs and strong research support for NSE-listed stocks like Motherson Sumi Wiring. |
Define your investment budget | Decide how much to invest based on your risk appetite, noting Motherson Sumi Wiring’s premium valuation and exposure to auto sector cycles. |
Choose a strategy (short or long term) | Consider a long-term approach to benefit from rising vehicle electrification and ongoing facility expansion, but be mindful of industry cycles. |
Monitor news and financial results | Track the company’s quarterly results, large order wins, greenfield facility progress, and key announcements on EV revenue growth. |
Use risk management tools | Utilise stop-loss orders and portfolio diversification to protect capital against sector volatility or unexpected cost pressures. |
Sell at the right time | Review technical resistance levels and market sentiment; consider booking profits if valuations outpace earnings or before macro headwinds. |
The latest news about Motherson Sumi Wiring
Motherson Sumi Wiring delivered record revenues and EBITDA in Q4 FY2024-25, with 7.1% YoY revenue growth. The company posted revenues of ₹2,500.31 Crore in the March quarter, outperforming industry averages and setting all-time highs for both quarterly and yearly performance in revenue and EBITDA. This marks a significant accomplishment given current market conditions, emphasizing the company's strong market positioning and operational execution within the Indian automotive wiring harness sector.
The stock gained 9.4% over the last week, supported by strong technical uptrends and positive momentum indicators. MSUMI’s share price closed at ₹57.41, registering a notable 9.4% gain for the week as key technical indicators such as RSI (64.81), CCI (118.86), and Stoch RSI (0.79) signaled robust upward momentum. The stock also trades comfortably above its short- and medium-term moving averages, reinforcing bullish sentiment in the Indian market despite some intraday volatility.
Strategic expansion advanced as the first of three new Greenfield manufacturing facilities started production in India. The recent commissioning of one new facility and ongoing development of two more reflect the company’s accelerated investment in domestic manufacturing capacity. This expansion directly addresses rising demand from automotive OEMs in the country and strengthens MSUMI’s ability to serve both ICE and electric vehicle (EV) platforms for Indian customers, positioning it for future volume and revenue growth.
The company’s EV strategy gained traction as EV-related revenues reached 4% of Q4FY25 sales, underscoring electrification progress. Motherson Sumi Wiring has begun capitalizing on the premiumization and electrification trends in India’s auto sector, as evidenced by the EV segment’s growing contribution to total revenues. This signals successful alignment with evolving industry requirements and provides a platform for further growth as vehicle electrification accelerates nationwide.
Financial discipline remains strong, with a debt-free balance sheet, robust cash flows, consistent dividend payouts, and ROCE above 40%. MSUMI’s sustained financial health is highlighted by a solid return on capital employed (42% for FY25) and a recent interim dividend declaration. Its debt-free status gives the company resilience to navigate cost pressures and flexibility to fund strategic initiatives, ensuring continued value creation for shareholders in the Indian market.
FAQ
FAQ
What is the latest dividend for Motherson Sumi Wiring stock?
Motherson Sumi Wiring currently pays a regular dividend. The most recent interim dividend was ₹0.50 per share, declared on March 21, 2025, with a current dividend yield of around 1.39%. The company has shown a consistent dividend payout policy, underlining its commitment to rewarding shareholders even amid sector expansion and investment in new production facilities.
What is the forecast for Motherson Sumi Wiring stock in 2025, 2026, and 2027?
Based on the current share price of ₹57.41, the projected price for end of 2025 is ₹74.63, for end of 2026 is ₹86.12, and for end of 2027 is ₹114.82. The stock benefits from its strong links to the fast-growing automotive sector, robust revenue growth, and the company’s strategic push into electric vehicles and premiumisation, all of which support an optimistic outlook.
Should I sell my Motherson Sumi Wiring shares?
Holding on to Motherson Sumi Wiring shares may be a prudent approach, given the company's demonstrated resilience, strong revenue performance, and leadership in supplying India's top automobile models. The company’s debt-free status, continual capacity expansion, and alignment with emerging trends like EV adoption suggest promising mid- to long-term growth potential. These fundamentals make it an attractive option for investors seeking exposure to India’s auto industry.
Are dividends or capital gains from Motherson Sumi Wiring stock taxable in India?
Yes, dividends and capital gains from Motherson Sumi Wiring are taxable under Indian law. Dividends received are added to the investor’s income and taxed as per their income tax slab, with no dividend distribution tax at the company level. Capital gains tax applies depending on the holding period—short-term (under 1 year) or long-term (over 1 year)—with specific tax rates and exemptions relevant to the investor’s profile.
What is the latest dividend for Motherson Sumi Wiring stock?
Motherson Sumi Wiring currently pays a regular dividend. The most recent interim dividend was ₹0.50 per share, declared on March 21, 2025, with a current dividend yield of around 1.39%. The company has shown a consistent dividend payout policy, underlining its commitment to rewarding shareholders even amid sector expansion and investment in new production facilities.
What is the forecast for Motherson Sumi Wiring stock in 2025, 2026, and 2027?
Based on the current share price of ₹57.41, the projected price for end of 2025 is ₹74.63, for end of 2026 is ₹86.12, and for end of 2027 is ₹114.82. The stock benefits from its strong links to the fast-growing automotive sector, robust revenue growth, and the company’s strategic push into electric vehicles and premiumisation, all of which support an optimistic outlook.
Should I sell my Motherson Sumi Wiring shares?
Holding on to Motherson Sumi Wiring shares may be a prudent approach, given the company's demonstrated resilience, strong revenue performance, and leadership in supplying India's top automobile models. The company’s debt-free status, continual capacity expansion, and alignment with emerging trends like EV adoption suggest promising mid- to long-term growth potential. These fundamentals make it an attractive option for investors seeking exposure to India’s auto industry.
Are dividends or capital gains from Motherson Sumi Wiring stock taxable in India?
Yes, dividends and capital gains from Motherson Sumi Wiring are taxable under Indian law. Dividends received are added to the investor’s income and taxed as per their income tax slab, with no dividend distribution tax at the company level. Capital gains tax applies depending on the holding period—short-term (under 1 year) or long-term (over 1 year)—with specific tax rates and exemptions relevant to the investor’s profile.