Motilal Oswal has issued a buy rating on Motherson Wiring with a target price of Rs 52 in its research report dated January 30, 2026. According to reports from Moneycontrol, the brokerage believes the company deserves rich valuations given its strong competitive positioning, top-decile capital efficiency, and benefits of electric vehicles and other mega-trends in the automotive sector.
The company's profit after tax (PAT) came in below estimates at Rs 1.5 billion, representing a 6.8% year-on-year growth. As reported by Moneycontrol, this underperformance was primarily attributed to higher copper inflation and slower than expected ramp-up of its greenfield operations. Revenue grew 25.5% year-on-year to Rs 28.9 billion, aided by the commencement of new greenfield plants which contributed Rs 2.5 billion to the total revenue.
Motherson shares touched a fresh 52-week high of Rs 125.49 on Tuesday, reflecting strong momentum following the India-US trade deal announcement. According to market reports, Indian auto stocks rose between 1.2% to 8.9% after the trade deal lowered US tariffs on Indian exports to 18% from 50% earlier. The rally was led by auto parts makers, with Balkrishna Industries up 7.3%, Bharat Forge jumping 8.7%, and Samvardhana Motherson rising 6.8%. Jefferies identified auto ancillaries with meaningful US exposure as key beneficiaries of the trade agreement.
Motilal Oswal's target price of Rs 52 is based on 36x December 2027 estimated earnings per share. According to the brokerage's assessment, Motherson Wiring is well-positioned to benefit from the ongoing electric vehicle transition and other automotive industry megatrends. The company's strong competitive positioning and capital efficiency metrics support the bullish outlook despite recent quarterly challenges, with the latest market rally reinforcing investor confidence in the stock's prospects.
