Motherson Sumi Wiring India Maintains Buy Rating Despite Margin Miss

Motherson Sumi Wiring India Ltd (MSUMI) reported revenue of Rs34.1 billion for Q1FY27, a 37% year-on-year increase and 5% above ICICI Securities' estimate.

The company's growth was driven by richer content per vehicle as customers shifted towards electric and hybrid powertrains, with its electric vehicle revenue share rising to 8.5%. Despite this, margins fell short due to higher copper prices and a significant minimum wage revision.

However, ICICI Securities maintains its BUY rating on MSUMI, keeping its target price at Rs50, which represents a 25% upside from the current market price of Rs40.