Shares of Motherson Sumi Wiring India are listed at Rs 66 on the BSE, after which the meter hit the upper circuit by 5% at Rs 69.30. However, the company’s shares were trading at Rs 67.50 as of 10:10 a.m. On NSE, the stock opened at Rs 65.20 and hit a high of Rs 68.45 so far in trade.
Shares of Motherson Sumi were trading down almost 2% at Rs 133.30 on BSE.
BSE Barometer and Benchmark Sensex was trading 332.63 points or 0.58% lower at 57,029.57 at the time of writing.
Motherson Sumi Systems said in January 2021 that it would spin off its wire harness business and list it as a separate entity. The promoters of the company are Motherson Sumi and Sumitomo himself.
The stock will be in the trade-for-trade segment for 10 days, which means no intraday trading will be allowed. If you buy on March 28, you will have to take delivery of these transactions.
Motilal Oswal analysts said that Motherson Sumi Wiring offers a purely Indian play on the automotive industry, with a focus on the attractive wiring harness sector.
“The company enjoys leadership in the Indian wire harness market, with an estimated market share of over 40%. The wire harness business is benefiting from mega trends (premiumization, increasing use electronics and electrification) that are manifesting in automotive.This, coupled with a strong JV partner and market leadership, has resulted in strong operational performance for MSWIL, as evidenced by continued growth over higher than underlying industry volumes, industry-leading capital efficiency and strong balance sheet,” the brokerage said.
MOSL is currently pricing MSWIL, under its SoTP for Motherson Sumi Systems, at 35x FY24E EPS or Rs 81 per MSWIL share. It deserves rich valuations due to its strong competitive positioning, first-decile capital efficiency, and benefiting from the transition to electric vehicles and other megatrends in the automotive space, the company added. brokerage house.