Buy Motherson Sumi Wrng Ind L, target price Rs 82: IIFL Securities

On June 18, IIFL Securities issued a "buy" recommendation for Motherson Sumi Wiring India Limited (Motherson Sumi Wrng Ind L), setting a target price of Rs 82. This represents a potential upside of approximately 5.8% from the current market price of Rs 77.5. The recommendation is based on the company's strong order book, focus on R&D, and potential for margin expansion. Investors may consider this recommendation and conduct their own research before making any investment decisions.

About Motherson Sumi Wrng Ind L:

Motherson Sumi Wiring India Limited (MSWIL) is an Indian automotive wiring harness manufacturer and a subsidiary of Motherson Group. It is the flagship company of the Motherson Group and the largest automotive wiring harness manufacturer in India. MSWIL manufactures wiring harnesses for various automotive applications, including passenger cars, commercial vehicles, and two-wheelers. The company also has a presence in the lighting and electrical components segment. MSWIL has a global footprint with operations in over 40 countries and employs over 140,000 people worldwide.

52 Week Price Trend:

Motherson Sumi Wiring India Ltd (NSE: MSUMI) is currently trading at Rs 77.5, within the range of its 52-week high of Rs 74.8 and low of Rs 45.15. This indicates that the stock is currently trading near its all-time high, suggesting a bullish sentiment among investors. The company has reported strong financial performance in recent quarters, driven by increased demand for its automotive wiring harness products. Analysts remain optimistic about the company's future prospects, citing its strong order book and global expansion plans.

Stratzy's MOST Analysis:

MSUMI's BB rating from Stratzy's MOST framework indicates medium fundamental risks. This assessment is based on a combination of factors: Management (M) assessment, Outlook (O) analysis, Safety (S) evaluation, and Trend (T) analysis. The BB rating suggests that MSUMI has a stable management team, a positive outlook for future growth, a sound financial position, and a favorable technical trend. However, investors should be aware of potential risks associated with this rating, and conduct thorough research before making investment decisions.

Company's Fundamentals:

Motherson Sumi Wrng Ind L (NSE:MSUMI), a leading automotive component manufacturer, is currently trading at a Stock PE (Price-to-Earnings) ratio of 54.72, indicating that investors are willing to pay 54.72 times the company's annual earnings per share. Its PB Ratio (Price-to-Book) of 24.33 suggests that the market value of the company is 24.33 times its book value, which is the value of its assets minus liabilities. Despite these relatively high valuation ratios, MSUMI offers a Dividend Yield of 0.9%, providing investors with a modest return on their investment.

Fundamental and Technical information provided in this blog were last updated on 18 Jun, 2024

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