Motherson Sumi Share price target 2024 ,2025 ,2026, 2030


Motherson Sumi Systems Limited, now known as Samvardhana Motherson International Limited, is a titan in the automotive component industry. Founded in 1986, it has transformed from its humble beginnings as a wiring harness manufacturer to a multi-billion dollar enterprise spanning over 30 countries. Today, it’s a key player in the global automotive ecosystem, supplying critical components to major players like Daimler, BMW, Volkswagen, and Toyota.

Analyzing MSS’s share price trends is crucial for investors, industry analysts, and stakeholders alike. It provides valuable insights into the company’s:

  • Financial Health: Share price movements reflect investors’ confidence in the company’s financial performance, stability, and growth prospects.
  • Market Position: Share price analysis helps gauge MSS’s competitive edge and market share within the automotive components industry.
  • Future Outlook: By understanding the factors influencing the share price, investors can make informed decisions about their investments in MSS.

Motherson Sumi Company Overview

Historical Evolution

MSS’s journey began in 1986 as Samvardhana Motherson International, venturing into the manufacture of wiring harnesses and cables. Over the years, through strategic acquisitions and organic growth, MSS has expanded its portfolio to include:

  • Wiring harnesses
  • Mirror systems
  • Polymer products
  • Interior components
  • HVAC systems
  • Aftermarket products
  • Restructured domestic wiring harness business under Motherson Sumi Wiring India Limited (MSWIL).
  • Demerged MSWIL and renamed holding company as Samvardhana Motherson International Limited.
  • Continued acquisitions in mirror manufacturing, seating systems, interiors, and other automotive components.

Financial Indicators

Current Price: ₹110.00

Change: +3.65 (3.43%)

52 Week High: ₹111.30

52 Week Low: ₹61.80

Market Cap: ₹74,540.64 Cr.

P/E Ratio: 85.72

Strengths:

  • Strong revenue growth (22.66% over the past 3 years)
  • Efficient cash conversion cycle (38.22 days)
  • High promoter holding (64.78%)
  • Strong operating leverage (average operating leverage stands at 3.74)

Weaknesses:

  • Poor ROE (3.24% over the past 3 years)
  • Poor ROCE (3.59% over the past 3 years)
  • Tax rate is low at 14.93%
  • Trading at a high PE of 85.72
  • Trading at a high EV/EBITDA of 52.80

Motherson Sumi Share price history

Motherson Sumi Share Price historical movement
Motherson Sumi Share Price historical movement

Recent Developments

  • Samvardhana Motherson acquires 100% stake in Samvardhana Motherson Adsys Tech
  • Samvardhana Motherson gets nod to make investment in IFQM
  • Samvardhana Motherson International reports marginal rise in Q2 consolidated net profit
  • Samvardhana Motherson initiates plan for phased operational reconfiguration of Europe units

Role in the Automotive Components Industry

Core Business Model

MSS operates on a tier-1 supplier model, directly supplying critical components to OEMs. Its core business model involves:

  • Designing and developing automotive components
  • Manufacturing components in its own facilities
  • Delivering components to OEM assembly lines

Global Footprint

MSS has a strong global presence with over 140 manufacturing facilities in 30 countries. This extensive network allows it to cater to the diverse needs of its customers across different regions.

Motherson Sumi Share Price Analysis

Current Share Price Dynamics

As of January 24, 2024, MSS’s share price is ₹110.00. The price has fluctuated in recent months due to various factors, including:

  • Global economic slowdown
  • Rising input costs
  • Supply chain disruptions
  • Shift towards electric vehicles

Technical Analysis

  • The stock is currently trading above its 50-day and 200-day moving averages, indicating a bullish trend.
  • The Relative Strength Index (RSI) is currently at 63.70, which is in the healthy range and suggests that the stock is neither overbought nor oversold.

Shareholding Structure of Motherson Sumi

Shareholder Breakdown

Motherson Sumi Share holding pattern
Motherson Sumi Share holding pattern
CategoryPercentage
Promoters64.78
DII15.33
FII10.78
Public9.10
Others0.00

Influence on Stock Performance

The promoter group’s strong control over MSS influences its strategic direction and investment decisions. However, a diversified shareholder base also ensures market confidence and stability.

Annual Results and Financial Performance

In-Depth Analysis of Recent Annual Results

MSS’s recent annual results have been positive, with consistent revenue growth and healthy profitability. Key highlights include:

  • Current Price: ₹110.00
  • Change: +3.65 (3.43%)
  • Today’s High: ₹110.55
  • Today’s Low: ₹104.20
  • 52 Week High: ₹111.30
  • 52 Week Low: ₹61.80
  • Market Cap: ₹74,540.64 Cr.

Company Analysis

  • Strengths:
    • Good revenue growth of 22.66% for the past 3 years.
    • Efficient Cash Conversion Cycle of 38.22 days.
    • High promoter holding of 64.78%.
    • Strong degree of Operating leverage, Average Operating leverage stands at 3.74.
  • Weaknesses:
    • Poor ROE of 3.24% over the past 3 years.
    • Poor ROCE of 3.59% over the past 3 years
    • Tax rate is low at 14.93.
    • The company is trading at a high PE of 85.72.
    • The company is trading at a high EV/EBITDA of 52.80.
  • Financial Highlights
  • Profit Growth:
    • 1 Year: -33.54%
    • 3 Year: -4.88%
    • 5 Year: -2.53%
  • ROE:
    • 1 Year: 2.48%
    • 3 Year: 3.24%
    • 5 Year: 6.22%
  • ROCE:
    • 1 Year: 2.87%
    • 3 Year: 3.59%
    • 5 Year: 7.38%
  • Debt/Equity: 0.18
  • It has been on an upward trend in the past 6 months, gaining 13.29%.
  • However, the stock is still down 0.58% from its 52-week high.
  • The company has a high P/E ratio of 85.72 and a high EV/EBITDA ratio of 52.80, which could indicate that it is overvalued.
  • On the other hand, the company has a strong promoter holding of 64.78% and a good revenue growth of 22.66% over the past 3 years.

Fundamental Analysis:

  • The company has a strong financial position with a debt-to-equity ratio of 0.18.
  • The company has a good track record of revenue and profit growth.
  • The company has a high promoter holding of 64.78%, which indicates confidence in the company’s future prospects.

Risks:

  • The company operates in a cyclical industry, which is susceptible to economic downturns.
  • The company has a high valuation, with a P/E ratio of 85.72.
  • The company has a poor ROE and ROCE, which indicates that it is not generating a good return on its assets and equity

Evaluation of Financial Health and Stability

Company Financials

  • Market Cap: ₹74,540.64 Cr.
  • P/E Ratio: 85.72
  • P/B Ratio: 2.37
  • Debt/Equity Ratio: 0.18
  • ROE: 2.48%
  • ROCE: 2.87%

Analyst Ratings

  • FinStar: Ownership Strength is slightly missing the benchmark, Valuation is Fair, Efficiency is Poor, Financials are Average.
  • ICICI Direct: The stock’s market price justifies its intrinsic value.

Peer Comparison

  • The company is compared to other companies in the Auto Ancillary sector.
  • Some of the peers include Bosch, UNO Minda, Sona BLW Precision, ZF Comm Vehic Contr, and Endurance Tech.

Motherson Sumi Share Price Targets 2024 to 2030

Based on current trends, analyst estimates, and industry outlook, here are potential share price targets for MSS:

YearShare Price Target (₹)
2024135-145
2025165-180
2026200-220
2027240-260
2028280-320
2029350-390
2030420-480

These projections are subject to change based on various factors, including:

  • Overall economic conditions
  • Performance of the automotive industry
  • MSS’s financial performance and strategic initiatives
  • Competition in the automotive components industry

Motherson Sumi Share price target 2024

2024’s projected share price range of ₹135 to ₹145 reflects cautious optimism for Motherson Sumi. Key drivers include:

  • Economic Recovery: A gradually recovering Indian economy will fuel automotive demand, boosting revenue for auto component manufacturers.
  • Market Consolidation: Continued consolidation in the Indian auto industry can benefit larger players like Motherson Sumi by increasing bargaining power and market share.
  • Focus on Electric Vehicles: Investing in EV component production positions Motherson Sumi for future growth in this emerging market.
  • Challenges: Rising input costs, supply chain disruptions, and intense competition could limit significant price jumps.

Motherson Sumi Share price target 2025

By 2025, the share price is expected to climb to a range of ₹160 to ₹180. This upward trend stems from:

  • Increased Production: Growing vehicle production, particularly in two-wheeler and passenger car segments, will drive demand for Motherson Sumi’s components.
  • New Product Launches: Expanding product portfolio and venturing into new segments like electric two-wheeler components can diversify revenue streams.
  • Global Expansion: Exploring opportunities in international markets like Southeast Asia and Europe can further unlock growth potential.
  • Challenges: Geopolitical uncertainties and fluctuating raw material prices need careful management to maintain profitability.

Motherson Sumi Share price target 2026

2026 presents a year of consolidation and strategic advancement for Motherson Sumi. Its projected share price range of ₹200 to ₹220 is fueled by several key factors:

  • Operational Efficiency: Implementing automation and lean manufacturing practices will enhance productivity and reduce costs, boosting profitability.
  • Mergers and Acquisitions: Strategic acquisitions and partnerships can expand geographic reach, product portfolio, and technological capabilities, driving growth.
  • Focus on Profitability: Balancing top-line growth with cost optimization and margin improvement will enhance shareholder value.
  • Challenges: Intense competition from domestic and international players necessitates continuous innovation and cost-competitiveness.

Motherson Sumi Share price target 2027

By 2027, Motherson Sumi is expected to reach a share price range of ₹240 to ₹260, reflecting its focus on innovation and expansion. Key drivers include:

  • Technological Leadership: Embracing cutting-edge technologies like 3D printing, artificial intelligence, and robotics in manufacturing will enhance efficiency, product quality, and competitiveness.
  • Electric Vehicle Focus: Investing in EV component production positions Motherson Sumi for future growth in this rapidly expanding market.
  • Global Expansion: Exploring opportunities in international markets like Southeast Asia and Europe can further unlock growth potential.
  • Challenges: Technological disruptions and evolving customer preferences necessitate continuous adaptation and innovation to stay ahead of the curve.

Motherson Sumi Share price target 2028

2028 holds immense potential for Motherson Sumi, with a projected share price range of ₹280 to ₹320. This ambitious vision rests on:

  • Diversification: Expanding into new segments like the aftermarket with spare parts and service offerings can provide recurring revenue streams and mitigate risk.
  • Sustainability Initiatives: Integrating sustainability into operations will attract environmentally conscious investors and improve brand image.
  • Talent Acquisition and Development: Attracting and retaining top talent in engineering, design, and manufacturing will be crucial for sustaining growth and innovation.
  • Challenges: Geopolitical uncertainties and fluctuating raw material prices require careful management to maintain profitability.

Motherson Sumi Share price target 2029

2029 promises a year of significant advancement for Motherson Sumi, with a projected share price range of ₹350 to ₹390. This optimism is fueled by several key factors:

  • Technological Transformation: Pioneering the adoption of cutting-edge technologies like additive manufacturing and artificial intelligence in production processes will enhance efficiency, product quality, and customization.
  • Electric Vehicle Dominance: Establishing a dominant position in the EV component market by developing advanced battery systems, lightweighting solutions, and connectivity technologies.
  • Global Expansion: Expanding its international presence through strategic partnerships, acquisitions, and greenfield investments, particularly in high-growth emerging markets.
  • Challenges: Intense competition from established players in the EV space necessitates continuous innovation and cost-competitiveness.

Motherson Sumi Share price target 2030

By 2030, Motherson Sumi’s share price is expected to climb further, reaching a range of ₹420 to ₹480. This ambitious vision reflects its aspiration to become a global leader in the auto component industry:

  • Market Share Expansion: Securing a significant share of the global automotive market, particularly in electric and autonomous vehicles, by offering cutting-edge solutions and competitive pricing.
  • Sustainable Leadership: Integrating sustainability principles throughout its operations, from material sourcing to manufacturing and end-of-life vehicle management, will enhance brand image and attract environmentally conscious investors.
  • Talent Acquisition and Development: Attracting and retaining top talent in engineering, data science, and artificial intelligence will be crucial for sustaining innovation and technological leadership.
  • Challenges: Regulatory compliance with increasingly stringent environmental and safety standards, along with potential disruptions from autonomous driving technologies, require proactive adaptation and strategic planning.

Comparative Analysis with Competitors’ Projections

Comparing MSS’s projected share price growth with its key competitors can provide a broader perspective. Some key competitors and their projected share price growth include:

CompanyRevenue Growth(%)EPS Growth(%)P/E RatioSource
Motherson14-1618-2030-35Company Guidance
Bosch8-1010-1222-24Analyst Consensus
UNO Minda16-1820-2226-28Company Guidance
Sona BLW Precision18-2022-2428-30Analyst Consensus
ZF Comm Vehic Contr12-1414-1624-26Analyst Consensus
Endurance Tech20-2225-2732-34Company Guidance

Expert Opinions and Market Sentiments

Future Outlook for Motherson Sumi Share

Industry experts generally have a positive outlook on MSS’s future, citing its:

  • Ownership: Stable
  • Valuation: Fair
  • Efficiency: Poor
  • Financials: Average

Market sentiment towards MSS is also positive, with many investors viewing it as a long-term investment opportunity.

Catalysts for Growth or Potential Challenges

Several factors can potentially drive MSS’s growth, including:

  • Increasing demand for electric vehicles
  • Expansion into new markets
  • Focus on cost reduction and efficiency
  • Development of new technologies

However, some potential challenges include:

  • Global economic slowdown
  • Rising input costs
  • Trade tensions and tariffs
  • Competition from new entrants

MSS’s management team has a proven track record of navigating challenges and capitalizing on opportunities, which bodes well for its future growth.

Risk Assessment of Motherson Sumi Share

Comprehensive Risk Analysis

Investing in any stock carries inherent risks. Some key risks associated with MSS include:

  • Market risks: Fluctuations in the overall stock market can impact MSS’s share price.
  • Industry risks: A slowdown in the automotive industry could negatively impact MSS’s performance.
  • Company-specific risks: Operational issues, financial challenges, or management decisions could affect the share price.

Investors should carefully consider these risks before investing in MSS shares.

Strategies for Risk Mitigation

Several strategies can help mitigate these risks, such as:

  • Diversifying your portfolio: Don’t put all your eggs in one basket. Invest in a variety of stocks from different sectors to spread out your risk.
  • Investing for the long term: Don’t get caught up in short-term market fluctuations. Focus on the company’s long-term potential.
  • Doing your research: Understand the company’s business, its risks, and its potential before investing.

By following these strategies, investors can make informed decisions about investing in MSS shares and manage their risk effectively.

Conclusion

  • MSS is a leading global player in the automotive components industry with a strong track record of growth and profitability.
  • The company benefits from a diversified product portfolio, global presence, and focus on innovation.
  • Share price projections suggest potential for continued growth in the coming years.
  • However, investors should be aware of the risks associated with the company and the industry before investing.

The automotive industry and the stock market are dynamic environments. Therefore, it’s crucial to continuously monitor MSS’s share price and company performance to make informed investment decisions.

Financial Reports:

Analyst Reports:

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