Motherson Sumi is one of the leading stocks in the automotive industry to supply parts and components. In the last 1 year, the stock has given approx 45% return. In the Feb 2024, the Motherson Sumi stock created a new all-time high which points to a strong rally in the stock. As an investor, you should know Motherson Sumi’s share price target for 2024, 2025, and 2026.
As of now, the Motherson Sumi stock is near its all-time high. Net Profit, Sales, EPS, etc. are increasing in the compnay continuously, and hope you know these things are the core metrics to analyze any company’s growth for investment. As these metrics are improving, then we can expect a bright future for the company.
Motherson Sumi provides a lot of products and services to clients all over the world. The fundamentals of the company are average. In a few words, there are some negative points as well as positive points. We shared the fundamentals of the Motherson Sumi company below.
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About Motherson Sumi
Motherson Sumi Wiring India Limited is an Indian company. The company was founded in 2020. The company has more than 23+ facilities in India.
Motherson Sumi Wiring Limited is involved in the automotive industry. As the company name suggests it is involved in the business of wire and provides original products to companies like Maruti, etc.
Motherson Sumi provides products of different types to many industries. It provides a wiring harness to automotive vehicles, automotive electrical components like connectors, terminals, etc., Research, Development, design, engineering, and many more.
Check Motherson Sumi’s official website to learn about their investors, products, achievements, how they work, their vision, and many more…
Compnay Fundamenatals
From the fundamentals, you can know about the company in detail like the strength of the company, the right value of the company, the position of company among the all companies of the same sector, financial statements, growth of the company, and many more.
Most probably you are a retail investor, It is highly recommended to do a fundamental analysis by yourself of the stocks in which you are investing or already invested. In case, you know how to do a fundamental analysis of companies you can learn it from the Internet.
Note: The fundamentals of the Motherson Sumi Wiring India Ltd. company were last updated on 17 Feb 2024.
Net Profit & Loss (Yearly)
| Year | Net Profit & Loss (Crore) |
|---|---|
| March 2019 | NA |
| March 2020 | NA |
| March 2021 | ₹396 |
| March 2022 | ₹411 |
| March 2023 | ₹487 |
Net Profit & Loss (Quarterly)
| Quarter | Net Profit & Loss (In Crore) |
|---|---|
| Dec 2022 | ₹106 |
| Mar 2023 | ₹138 |
| Jun 2023 | ₹123 |
| Sep 2023 | ₹155 |
| Dec 2023 | ₹168 |
Company Fundamentals
| Market Cap | ₹31,973Cr | ROE | 39.77% |
| P/E Ratio (TTM) | 54.79 | EPS (TTM) | 1.32 |
| P/B Ratio | 24.28 | Div Yield | 0.90% |
| Industry P/E | 45.88 | Book Value | 2.98 |
| Debt to Equity | 0.21 | Face Value | 1 |
Shareholding Pattern
| Held By | Jun 2023 | Sep 2023 | Dec 2023 |
|---|---|---|---|
| FIIs | 10.93% | 11.08% | 11.01% |
| DIIs | 17.77% | 17.56% | 17.12% |
| Public | 9.33% | 9.41% | 9.93% |
| Promoters | 61.74% | 61.75% | 61.75% |
| Government | 0.21% | 0.21% | 0.21% |
Key Points
- In the last 3 years, Motherson Sumi Wiring India Ltd. has shown very poor profit growth and revenue growth.
- Motherson Sumi is trading at a very high PE, which means the valuation is very expensive.
- The financials of the company seem very weak and it will be hard to stable for the company in poor market conditions.
- Motherson Sumi is utilizing its assets in a good way.
- There is a Debt of Rs. 81.80 Crore and its equity-to-debt is 0.21 on the Motherson Sumi company.
- ROE and ROCE of the company have been good over the last 3 years.
Quarterly Result Q2FY24
From the more than last 10 to 12 quarters the net profit of Motherson Sumi Wiring India Ltd is continually increasing and in the Dec 2023 Quarter net profit was Rs. 168 Crore which is the highest profit of the company in a single quarter.
Thumb Rules for Investing
Just by doing fundamental analysis, anyone cannot book maximum returns on the stocks. Based on the investors’ experiences a few basic rules become the t rules for investing. In short, most retail investors or newbie investors make the below mistake as a result they do not get the maximum return on their investing.
These rules apply to the maximum sectors’ stocks. If you are new in the market or don’t have enough knowledge you should follow the rules to make your self psychology strong.
Rule #1: Do not invest all the money in one sector’s stocks. No matter what is the future of the sector. In case you invested all the money in one sector, if the sector faces any issue, you’ll be in a huge loss.
Rule #2: Invest a maximum of 5% – 6% of the total money in any stock. Suppose you have Rs. 1 Lakh the invest only 5000 – 6000 in any stock. This rule is applicable when you are retail, and can not track all the stocks.
Rule #3: Invest in a maximum of 2-3 stocks of a sector. When any sector faces problems then other sectors’ stock will save you from huge losses.
Rule #4: Invest in stock when the stock the available at a 10% low from its 52-week high. Some people invest in stocks at high, and as a result, they do not get good returns on their investments.
Rule #5: Invest in stocks for at least 5 – 7 years to get very high returns. Keep booking the profit from time to time.
Rule #6: Keep averaging the stock if everything is right in the company and the stock is available at a high discount due to any market crash.
Rule #7: Before Investing in any stock make sure you check its fundamental and related news. It will help you to stay away from the stock which can give you huge losses.
Motherson Sumi Share Price Target
The Business model of the company looks good but there are a few negative points in the financials of the Motherson Sumi Wiring India Ltd. company i.e. poor revenue and profit growth of the last 3 years, PE of the company is very high, etc. But there are also many positive points as well like Good ROE and ROCE of the last 3 years, almost DEBT free, and many more.
As we mentioned above the PE of the stock is very high or in other words, the stock is trading at a high high valuation. Investing in stock that is trading at a high premium is not good for retail investors. In a high PE case, the stock may trade at the same level in a range for a long time or it can correct badly in the future.
Disclaimer: We are not SEBI registered. The post is only for educational purposes not for any investing advice. Do your analysis or ask your financial advisor before investing. We will not be responsible for any loss or profit.
Motherson Sumi share price Target 2024
Motherson Sumi stock is trading near its all-time high. Once the stock will break Rs. 75 resistance than in the short term expecting 10% to 15% return in the short term. As it is a short-term trade then you can go with SL of Rs. 64.5.
One can book maximum profit in the trade if he/she knows how to trail SL using technical analysis. We are suggesting SL trailing because, in the long term, the stock can give more return.
So, buying a stock in the short term and converting it for the long term can be very profitable as the fundamentals of the financials of the Motherson Sumi company are improving.
Motherson Sumi share price Target 2025
As we mentioned above the PE ratio of the motherson Sumi company is very high. It can be a reason for a crash or downfall in the stock in the next few months or years. It is not good to buy stocks that have very high PE.
As the PE will go down then the stock price will also go down. It does not mean you should not buy stocks which is training at high PE, many stocks are trading at high PE and still getting good returns.
You should only invest in the stock that is trading at a high PE when you have a complete understating of the company’s business, products, finances, etc.
According to many experts, the stock will go up and give a good return in the next few months. If you have also a level and there are very high chance of going up then you can decrease some quantity. If the stock goes against you you’ll face very less loss.
Motherson share price target 2026
As the stock is training at a high PE it may correct in the upcoming months and it may trade at a fair valuation. There is no doubt the stock will give good profits in the upcoming year but if you invest in any stock at a fair valuation and discounted price then you’ll get a high return.
As of now, more than 70% of analysts are bullish on the Motherson Sumi stock for the long term. You can invest in the stock in SIP mode, by regular SIP the buying price of the stock will be adjusted automatically so, you can get better returns in the future.
FAQs
In the company, financial revenue growth and profit growth have been negative for the last few years. The PE of the company is also very high. In these cases, you should only invest with proper research and risk management. In case, you are a newbie investor then do not fall into these things of getting high returns.
As of now, the MothersonSumi stock is consolidating after giving very good returns. It is in a range and if it gives a breakout then we can see a good move in the stock. In case of breakdown, we can see a downfall.
The DEBT on the Motherson Sumi company is approx Rs. 81 Cr. If you compare it with the market cap of the Motherson Sumi it will be a very low DEBT. In a few words, we can say the stock is nearly DEBT-free.
Final Words: The business model of the company is good and the services they provide are also good. The problem is the revenue growth and the profit growth of Motherson Sumi are negative. The PE ratio is also very high, if the PE ratio of any company is higher than 25 then it is not good for the company. As of now, there are no share price targets for the Motherson Sumi stock for the long term.