Motherson Sumi Wiring India Ltd.
NSE: MSUMIMotherson Sumi Wiring India Ltd.: A 30-second snapshot
Motherson Sumi Wiring India (MSUMI) is an auto-components manufacturer priced at ₹42.29, trading below its 200-DMA of ₹43.70 and 21.09% off its 52-week high. The company posted 33.1% five-year revenue CAGR but only 1.5% five-year earnings CAGR, with a debt-to-equity of 10.79 that stands out sharply against listed Auto sector peers. ROE of 32.39% is the highest among the 6 peers tracked, creating a notable tension between return quality and balance-sheet leverage.
P/E
45.0
Forward P/E
28.2
ROE
+32.4%
Debt / Equity
10.79
Profit Margin
+5.5%
Div. Yield
+2.6%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
57/100
News
8 headlines · 2 positive · 1 negative
Motherson Sumi Wiring India Q4 Results - Mint
Mint
Motherson Sumi Revenue Surges 32.9% But Margin Woes Dominate - Whalesbook
Whalesbook
Motherson Sumi Wiring India standalone net profit rises 1.44% in the March 2026 quarter - Business Standard
Business Standard
Motherson Sumi Wiring India posts quarterly profit rise on car component demand hike - TradingView
TradingView
Buy Motherson Sumi Wiring India; target of Rs 50: ICICI Direct - Moneycontrol.com
Moneycontrol.com
Recent context
- ·Q4 FY2026 standalone net profit rose 1.44% YoY and revenue surged 32.9%, but multiple outlets, including a Whalesbook report dated 29 April, highlighted that margin pressures dominated the earnings narrative despite the revenue outperformance.
- ·ICICI Direct issued a note on MSUMI (Moneycontrol, 29 April) with a stated target; this is a named broker action and represents third-party coverage rather than a VivaTrades view.
- ·News sentiment across 8 articles was neutral overall (5 neutral, 2 positive, 1 negative on the 1–5 scale), with the negative article specifically focused on margin woes rather than demand or operational disruption.
Strengths
- +ROE of 32.39% ranks 1st among 6 Auto sector peers, with ROE above 15% in 4 of the years available in the persistence data and a consistency score of 86.
- +Free cash flow was positive in 4 of the available years, and the debt trend is classified as falling, suggesting some directional improvement in leverage.
- +Forward PE of 28.16 is meaningfully below the trailing PE of 44.99, implying earnings are expected to grow materially in the near term relative to current price.
- +Dividend yield of 2.59% provides a measurable income component at the current price of ₹42.29.
Weaknesses
- −D/E of 10.79 is the most prominent structural risk: at this leverage level, thin profit margins of 5.47% leave limited buffer for interest-coverage deterioration if revenues slow.
- −Five-year earnings CAGR of 1.5% against a 5-year revenue CAGR of 33.1% indicates that three decades of revenue scale have not converted to proportionate bottom-line growth — a persistent margin compression pattern confirmed by recent Q4 commentary.
- −Quality score of 45 places MSUMI 5th out of 6 tracked Auto peers, with only TMPV ranked lower, reflecting the composite drag of high leverage and thin margins on overall business quality.
- −Price has been below the 200-DMA (₹43.70) in recent months, and the stock sits 21.09% below its 52-week high, with resistance levels at ₹44.65, ₹46.50, and ₹49.60.
Open questions
- ?Does the falling debt trend reflect genuine deleveraging from operating cash flows, or is it driven by asset revaluations and working-capital timing that may reverse?
- ?How durable is the 32% ROE given the 5.47% profit margin — what level of asset turnover and leverage is required to sustain it, and what happens to ROE if margins compress further?
- ?The 5-year revenue CAGR of 33.1% vs. 1.5% earnings CAGR gap: is this a transitional investment cycle where margin recovery is structurally plausible, or has the business model reached a cost ceiling?
- ?At a D/E of 10.79, what portion of operating cash flow is absorbed by debt service, and how sensitive is that coverage ratio to a 10-20% decline in automotive OEM volumes?
Peer comparison: Auto
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| MSUMI | Motherson Sumi Wiring India Ltd.You're viewing | 45.0 | +32.4% | 45 |
| Industry avg | across 5 peers | 29.7 | +20.4% | 49 |
| EICHERMOT | Eicher Motors Ltd. | 37.3 | — | 60 |
| BAJAJ-AUTO | Bajaj Auto Ltd. | 27.6 | +28.1% | 55 |
| M&M | Mahindra & Mahindra Ltd. | 21.3 | +18.8% | 52 |
| TMPV | Tata Motors Passenger Vehicles Ltd. | 33.1 | — | 46 |
| MARUTI | Maruti Suzuki India Ltd. | 29.0 | +14.4% | 31 |
Technical state
Current price
₹42.29
SMA 50
₹39.88
SMA 200
₹43.70
RSI (14)
60.5 (neutral)
From 52w high
-21.1%
1Y return
+11.7%
3M return
-5.1%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 10.79 is substantially elevated for an auto-components manufacturer; sector median D/E among listed peers is well below 1. Combined with a 5-year earnings CAGR of 1.5% against a 5-year revenue CAGR of 33.1%, revenue growth has not translated into proportionate profit growth, indicating material margin compression over the period.
- highProfit margin stands at 5.47%, which is thin for a capital-intensive auto-wiring business with D/E of 10.79. A further margin contraction would compress interest-coverage headroom rapidly.
- mediumPrice (₹42.29) is below the 200-DMA (₹43.70), a condition that has persisted into recent months. The stock is 21.09% below its 52-week high. While it has recovered above the 50-DMA (₹39.88), the longer-term trend line remains overhead resistance.
- mediumQuality score of 45 ranks 5th out of 6 peers in the Auto sector, above only TMPV (46 is close). The sector median quality score across listed peers is higher, reflecting MSUMI's relatively weaker composite quality positioning within the group.
- lowNews sample is sparse at 8 articles total. One headline (Whalesbook, 29 Apr) explicitly flagged margin concerns despite 32.9% revenue growth, consistent with the 5-year earnings-vs-revenue divergence seen in fundamentals.
Cross-section contradictions
- ROE of 32.39% ranks 1st among 6 Auto sector peers and has remained above 15% for 4 of the available years, yet the quality score of 45 places MSUMI 5th out of 6 — suggesting the quality composite is being dragged down by the very high D/E and thin margins despite the high return on equity.
- 5-year revenue CAGR of 33.1% is strong, but 5-year earnings CAGR of 1.5% signals that scale has not delivered operating leverage; margin woes noted in recent news coverage corroborate this structural divergence.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 11 May 2026 · rotates through NIFTY 500 every ~5 days