Motherson Sumi Wiring India Ltd.
Auto · NSE
52-week range
₹36 – ₹54
From 52w high
-20.7%
RSI (14)
62.0
vs SMA 50 / 200
↑ 50 · ↓ 200
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.
- ✓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.
- ✗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.
- ·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.
- ?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?
PE
45.0
Forward PE
28.2
ROE
+32.4%
Profit margin
+5.5%
D/E
10.79
Dividend yield
+2.6%
Quality score
45/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
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.Analysis generated 11 May 2026.