According to reports from ET Now, Motherson Sumi Wiring India Ltd (MSWIL) shares were trading at Rs 38.77 as of 10:15 am, up 1.5% or Rs 0.60 from the previous close. The stock touched an intraday high of Rs 38.85, reflecting gains of nearly 1.7% during the session. Despite trading below Rs 40 per share, the company commands a market capitalisation of nearly Rs 25,678 crore. However, the stock has declined 2.5% over the past week, 6.6% in the last month, and 20.8% so far in 2026, with negative returns over six-month and two-year periods.
As reported by ET Now, Emkay has issued an 'Add' rating for Motherson Sumi Wiring India with a Rs 45 target price. According to Emkay, the company's technological capabilities and support from the Sumitomo Group continue to enhance its competitive positioning in the automotive wiring harness segment. The brokerage noted that all three greenfield manufacturing facilities are progressing through the ramp-up phase and are collectively nearing EBITDA breakeven, excluding fluctuations in copper prices.
In a significant development, Samvardhana Motherson International has commissioned its first ground-mounted captive solar power project in Uttar Pradesh through its energy business company Motherson New Energy (MNEL). Located in Mahoba, the 15 MWp solar facility will supply clean, renewable energy to multiple Motherson manufacturing plants across the state. The project is expected to generate approximately 23.4 GWh of renewable electricity annually, reducing ~17,000 MT of CO2 emissions each year. This initiative represents a major step in the group's clean energy transition strategy and strengthens long-term energy cost visibility and operational resilience.
According to Emkay, management is targeting an EBITDA margin of 12-13% (excluding the impact of greenfield facilities) by Q2FY27, assuming copper prices remain stable. However, a lag in the pass-through of higher copper costs could temporarily weigh on margins during Q1FY27. The brokerage highlighted the company's disciplined capital allocation strategy, with recent investments expected to generate around 40% return on capital employed (ROCE) upon full ramp-up and achieve payback within 3-3.5 years.
As reported by ET Now, Motherson Sumi Wiring India is the market leader in the domestic wiring harness industry, holding an estimated market share of around 40%. This strong position is attributed to its efficient asset-light model and significant return on equity, which was 46% in FY21. The Indian auto component sector is projected to grow by 8-10% in FY 2025-26, driven by capacity expansion and technological advancements. The company focuses on leveraging advanced technologies through its joint venture with Sumitomo Wiring System to maintain its competitive edge.
