Motherson Sumi is one of the leading stocks in the automotive industry to supply parts and components. In the last few months, the stock has given a good return of up to 30%. In a few words, the Motherson Sumi stock is in an uptrend from the last few months and most probably the Motherson Sumi share price target can be very big for the next few years.
As of now, the stock is trading below its all-time high. Many experts suggest a buy signal on the stock for the long term. Motherson Sumi’s stock price has been consolidating in a range for the last few weeks. If it gives a breakout upside then we can see another rally in stock.
Motherson Sumi provides a lot of products and services to clients all over the world. The fundamental of the company is 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 is involved in the business of providing solutions to the Original Equipment Manufacturers in the sector they work. They provide a complete solution from scratch to advance which includes from product design to the production of the parts.
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 27 August 2023.
Revenue Growth (Last 5 Years)
| Year | Revenues (In Crores) |
|---|---|
| March 2019 | N/A |
| March 2020 | N/A |
| March 2021 | 0.00 |
| March 2022 | 5,665.00 |
| March 2023 | 7,079.70 |
Quarterly Results (Last 5 Quarters)
| Quarter | Total Income (In Rs. Cr.) |
|---|---|
| Jun 2022 | 1,107.94 |
| Sep 2022 | 1,835.21 |
| Dec 2022 | 1,686.80 |
| Mar 2023 | 1,864.42 |
| Jun 2023 | 1,858.79 |
Company Essentials
| Title | Value |
|---|---|
| MARKET CAP | Rs. 26,349.80 Cr |
| ENTERPRISE VALUE | Rs. 26,349.80 Cr. |
| NO. OF SHARES | 442.11 Cr. |
| P/E | 54.42 |
| P/B | 18.13 |
| FACE VALUE | Rs. 1 |
| DIV. YIELD | 1.09 % |
| BOOK VALUE (TTM) | Rs. 3.29 |
| CASH | Rs. 36.80 Cr. |
| DEBT | Rs. 81.80 Cr. |
| EPS (TTM) | Rs. 1.10 |
| SALES GROWTH | 25.24 % |
| ROE | 39.83 % |
| ROCE | 53.41 % |
| PROFIT GROWTH | 18.58 % |
Shareholding Pattern
| Held By | Holding % |
|---|---|
| FII | 10.9 % |
| DII | 18.02 % |
| Public | 9.34 % |
| Promoters | 61.73 % |
| Other Holders | 0.0 % |
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 the PE of the Motherson Sumi Wiring India Ltd is very high. The PE should be below at least 25. PE below 25 considered is a good PE. The company PE stands at 54.42. Hope you know buying stocks that have high PE can be a little bit risky.
Disclaimer: We are not SEBI registered. The post is only for educational purposes not for any investing advice. Do your own analysis or ask your financial advisor before investing. We will not be responsible for any loss or profit.
Motherson Sumi share price target 2023
Motherson Sumi stock is trading in a range after giving the breakout from the lower side. Mostly stocks take a rest in these cases for some time and then decide where they will go according to the formed pattern or price action.
If the Motherson sumi will give a breakout upside then there are very high chance that it will go up side. In the opposite case, it can go down.
Motherson Sumi share price Target 2024
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.
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.
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.