ICICI Direct has given Buy recommendation for Motherson Sumi Wiring India with a target price of Rs. 105 in its research report issued on Sep 28, 2022
ICICI Direct’s research report on Motherson Sumi Wiring India
Motherson Sumi Wiring India (MSWIL) was established in 1986 as a JV with Sumitomo Wiring Systems (Japan). MSWIL is a leading, full-system wiring harness solutions provider in India catering to all major OEMs like Maruti Suzuki, Toyota Motors, Ashok Leyland, Tata Motors, etc. Listed on March 28, 2022. FY22 segment mix: PV: 60%; CV: 11%; 2-W: 12%; Others: 17% • It has 23 plants in India with 40,000+ employees. It was recently carved out of the erstwhile Motherson Sumi (MSSL) at the behest of its JV partner.
Outlook
We bring MSWIL in coverage pursuant to de-merger and assign BUY rating amid structural levers for long term secular growth & ~50% RoCE profile. Introducing FY25E, we value MSWIL at Rs 105 i.e. 42x P/E on average FY24-25E EPS of Rs 2.5.