Motherson Sumi Wiring India Ltd has shown a consistent positive trend in YoY Net Profit Growth (%) in the last 3 years from 2021-2022 to 2023-2024.
Growth
Compounded Sales Growth
10 Years:
%
5 Years:
%
3 Years:
28%
TTM:
18%
Compounded Profit Growth
10 Years:
%
5 Years:
%
3 Years:
17%
TTM:
26%
Stock Price CAGR
10 Years:
%
5 Years:
%
3 Years:
%
1 Year:
-8%
Return on Equity
10 Years:
%
5 Years:
%
3 Years:
48%
Last Year:
42%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Sep 2024
Equity Capital
0.10
316
442
442
442
Reserves
-0
799
888
1,235
1,175
Borrowings
96
283
373
259
282
Other Liabilities
1,693
1,164
1,195
1,203
1,482
Total Liabilities
1,789
2,562
2,898
3,139
3,381
Fixed Assets
170
432
579
600
686
CWIP
0
32
27
24
6
Investments
0
0
0
0
0
Other Assets
1,620
2,097
2,292
2,516
2,689
Total Assets
1,789
2,562
2,898
3,139
3,381
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity +
11
501
224
791
Cash from Investing Activity +
-28
-101
-194
-208
Cash from Financing Activity +
25
-144
-287
-452
Net Cash Flow
8
256
-257
131
Free Cash Flow
Month
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Free Cash Flow
457.00
447.00
419.00
-258.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Free Cash Flow Chart
Financial Efficiency Indicators
Month
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Debtor Days
63
43
41
39
Inventory Days
116
97
95
76
Days Payable
109
92
73
62
Cash Conversion Cycle
69
47
64
54
Working Capital Days
55
36
49
42
ROCE %
88%
44%
48%
Financial Efficiency Indicators Chart
Share Holding Pattern
Month
Mar 2022
Jun 2022
Sep 2022
Dec 2022
Mar 2023
Jun 2023
Sep 2023
Dec 2023
Mar 2024
Jun 2024
Sep 2024
Dec 2024
Promoters
61.73%
61.73%
61.73%
61.73%
61.73%
61.74%
61.75%
61.73%
61.73%
61.73%
61.73%
61.73%
FIIs
14.89%
8.60%
10.47%
11.03%
9.92%
10.93%
11.08%
11.01%
10.96%
10.78%
10.52%
9.86%
DIIs
13.42%
20.81%
19.13%
18.26%
18.94%
17.77%
17.56%
17.12%
16.22%
16.23%
16.34%
16.74%
Government
0.00%
0.00%
0.09%
0.09%
0.09%
0.21%
0.21%
0.21%
0.00%
0.00%
0.00%
0.00%
Public
9.96%
8.86%
8.57%
8.89%
9.32%
9.33%
9.41%
9.93%
11.11%
11.26%
11.41%
11.67%
No. of Shareholders
6,78,238
6,43,861
6,48,348
6,78,282
6,85,401
6,94,219
7,21,760
7,75,566
8,88,941
8,89,943
9,20,343
9,39,882
Shareholding Pattern Chart
No. of Shareholders
This stock is not held by any mutual fund
ROCE / ROE Trend
EPS Trend
Key Financial Ratios
Month
Mar 24
Mar 23
Mar 22
Mar 21
FaceValue
1.00
1.00
1.00
1.00
Basic EPS (Rs.)
1.44
1.10
1.30
-9.20
Diluted EPS (Rs.)
1.44
1.10
1.30
-9.20
Cash EPS (Rs.)
1.78
1.38
1.63
-8.22
Book Value[Excl.RevalReserv]/Share (Rs.)
3.79
3.01
3.53
-7.22
Book Value[Incl.RevalReserv]/Share (Rs.)
3.79
3.01
3.53
-7.22
Dividend / Share (Rs.)
0.80
0.65
0.85
0.00
Revenue From Operations / Share (Rs.)
18.84
15.96
17.84
0.00
PBDIT / Share (Rs.)
2.31
1.82
2.41
-8.06
PBIT / Share (Rs.)
1.97
1.54
2.07
-8.06
PBT / Share (Rs.)
1.91
1.48
1.78
-8.22
Net Profit / Share (Rs.)
1.44
1.10
1.30
-8.22
PBDIT Margin (%)
12.24
11.38
13.49
0.00
PBIT Margin (%)
10.48
9.63
11.62
0.00
PBT Margin (%)
10.15
9.24
9.95
0.00
Net Profit Margin (%)
7.66
6.90
7.28
0.00
Return on Networth / Equity (%)
38.06
36.60
36.84
0.00
Return on Capital Employeed (%)
45.66
42.24
47.91
111.63
Return On Assets (%)
20.33
16.80
16.03
-1110.81
Long Term Debt / Equity (X)
0.01
0.01
0.00
0.00
Total Debt / Equity (X)
0.01
0.06
0.01
-0.97
Asset Turnover Ratio (%)
2.76
2.59
4.40
0.00
Current Ratio (X)
1.94
1.66
1.65
0.09
Quick Ratio (X)
1.01
0.71
0.84
0.09
Inventory Turnover Ratio (X)
4.65
4.33
0.00
0.00
Dividend Payout Ratio (NP) (%)
45.02
55.11
0.00
0.00
Dividend Payout Ratio (CP) (%)
36.58
43.94
0.00
0.00
Earning Retention Ratio (%)
54.98
44.89
0.00
0.00
Cash Earning Retention Ratio (%)
63.42
56.06
0.00
0.00
Interest Coverage Ratio (X)
37.37
28.91
26.68
-50.38
Interest Coverage Ratio (Post Tax) (X)
24.38
18.52
17.71
-50.38
Enterprise Value (Cr.)
28905.64
21424.96
20079.31
0.00
EV / Net Operating Revenue (X)
3.47
3.04
3.56
0.00
EV / EBITDA (X)
28.34
26.66
26.41
0.00
MarketCap / Net Operating Revenue (X)
3.50
3.03
3.61
0.00
Retention Ratios (%)
54.97
44.88
0.00
0.00
Price / BV (X)
17.39
16.07
18.26
0.00
Price / Net Operating Revenue (X)
3.50
3.03
3.61
0.00
EarningsYield
0.02
0.02
0.02
0.00
Profitability Ratios (%)
Liquidity Ratios
Liquidity Ratios (%)
Interest Coverage Ratios (%)
Valuation Ratios
Fair Value
Fair Value of Motherson Sumi Wiring India Ltd as of January 24, 2025 is: 59.03
Calculation basis:
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.
As of January 24, 2025, Motherson Sumi Wiring India Ltd is Undervalued by 5.41% compared to the current share price 56.00
Intrinsic Value of Motherson Sumi Wiring India Ltd as of January 24, 2025 is: 66.41
Calculation basis:
Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.
This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
As of January 24, 2025, Motherson Sumi Wiring India Ltd is Undervalued by 18.59% compared to the current share price 56.00
Last 5 Year EPS CAGR: 12.51%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock is trading at a low valuation with an average P/B ratio of -0.38 and average Dividend Yield of 7.93%.
The stock has a high average ROCE of 45.00%, which is a positive sign.
The company has higher reserves (819.40 cr) compared to borrowings (258.60 cr), indicating strong financial stability.
The company has shown consistent growth in sales (6.20 cr) and profit (692.40 cr) over the years.
The stock has a high average Working Capital Days of 45.50, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 58.50, which may not be favorable.
Stock Analysis
Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Motherson Sumi Wiring India Ltd:
Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
ROE%: 38.06% (Industry Average ROE: 15.87%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
Stock P/E: 37.5 (Industry average Stock P/E: 63.59)
Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
Total Debt / Equity: 0.01
Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Stock Rating:
About the Company - Qualitative Analysis
Motherson Sumi Wiring India Ltd. is a Public Limited Listed company incorporated on 02/07/2020 and has its registered office in the State of Maharashtra, India. Company's Corporate Identification Number(CIN) is L29306MH2020PLC341326 and registration number is 341326. Currently Company is involved in the business activities of Manufacture of motor vehicle electrical equipment, such as generators, alternators, spark plugs, ignition wiring harnesses, power window and door systems, assembly of purchased gauges into instrument panels, voltage regulators, etc.. Company's Total Operating Revenue is Rs. 8328.20 Cr. and Equity Capital is Rs. 442.10 Cr. for the Year ended 31/03/2024.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Motherson Sumi Wiring India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
