Motherson Sumi Wiring stock jumps 8% on strong volumes, logs biggest intraday gain since February

Motherson Sumi Wiring India's stock rose by 7.8% in today's trading with high volumes. Over the past six trading sessions, the stock has maintained an upward trajectory, accumulating a gain of 14%.

A Ksheerasagar
First Published13 Jun 2024, 03:04 PM IST
Motherson Sumi Wiring India's stock rose by 7.8% in today's trading with high volumes.
Motherson Sumi Wiring India’s stock rose by 7.8% in today’s trading with high volumes.(Pixabay)

Shares of Motherson Sumi Wiring India, a prominent automotive products manufacturer, surged by 7.8% in today's intraday trading session, marking their largest single-day increase since February amidst robust trading volumes. 

As of the time of this report, a total of 32.6 million shares were traded on both the NSE and BSE, a significant 4.73-fold increase compared to the stock's average weekly volume of 6.9 million shares. 

Today's rally has propelled the stock towards its all-time high of 74.80 per share. Over the past six trading sessions, the stock has maintained an upward trajectory, accumulating a gain of 14%.

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The company concluded FY24 on a strong note, achieving revenues of 2,233 crores and a PAT of 191 crores for Q4 FY24, marking its best-ever quarterly performance. The strong outperformance compared to the industry was attributed to continued growth in content per vehicle, sustained premiumisation trends across the industry, and the increasing popularity of SUVs.

Currently, the company has two facilities in the pipeline scheduled to become operational in Q1 FY25, with a ramp-up planned for H2 FY25 onwards. These facilities are expected to increase total production capacity by 10-15% and will cater to both ICE and EV models.

The company highlighted its expanding footprint and enhanced production capacity driven by client expansions in the small car and SUV segments, including upcoming launches and additional vehicle features, which are anticipated to generate incremental revenue for Motherson Sumi.

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The company maintains its guidance for an ROCE of over 40%. It was also noted that copper prices pass through to OEMs with a lag of 3–6 months. The capex guidance for FY25 stands at approximately 2 billion, allocated towards maintenance (replacement of end-of-line assets) and growth initiatives (capacity expansion and product quality enhancements).

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Emkay Research, in its recent note, mentioned that with market-share losses within MSWIL now behind and breakthroughs in two large SUV-focused OEMs alongside the EV shift, Motherson Sumi is poised to sustain robust performance despite moderating growth in the PV industry. 

Emkay Research expects a CAGR of 21% for revenue, and 28% and 33% for EBITDA and PAT, respectively, over FY24–26E. The brokerage retained its ‘buy’ rating on the stock with a target price of 80 apiece. 

 

Also Read: Multibagger Stock: Garware Hi-Tech Films shares zoomed over 160% in a year, surged 1060% in 4 years

 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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$5 M

394,000

$112 B

12.1%

₹133.50 Cr

₹12,300 Cr

$136 M

First Published:13 Jun 2024, 03:04 PM IST
HomeMarketsStock MarketsMotherson Sumi Wiring stock jumps 8% on strong volumes, logs biggest intraday gain since February

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