Motherson Sumi Wiring India Limited
Motherson Sumi Wiring India Limited Fundamental Analysis
Motherson Sumi Wiring India Limited (MSUMI.BO) shows moderate financial fundamentals with a PE ratio of 44.89, profit margin of 5.46%, and ROE of 33.79%. The company generates $113.4B in annual revenue with strong year-over-year growth of 12.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MSUMI.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMSUMI.BO demonstrates superior asset utilization.
Valuation Score
WeakMSUMI.BO trades at a premium to fair value.
Growth Score
ModerateMSUMI.BO shows steady but slowing expansion.
Financial Health Score
ExcellentMSUMI.BO maintains a strong and stable balance sheet.
Profitability Score
ModerateMSUMI.BO maintains healthy but balanced margins.
Key Financial Metrics
Is MSUMI.BO Expensive or Cheap?
P/E Ratio
MSUMI.BO trades at 44.89 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MSUMI.BO's PEG of 10.21 indicates potential overvaluation.
Price to Book
The market values Motherson Sumi Wiring India Limited at 12.98 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 26.01 times EBITDA. This signals the market has high growth expectations.
How Well Does MSUMI.BO Make Money?
Net Profit Margin
For every $100 in sales, Motherson Sumi Wiring India Limited keeps $5.46 as profit after all expenses.
Operating Margin
Core operations generate 7.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $33.79 in profit for every $100 of shareholder equity.
ROA
Motherson Sumi Wiring India Limited generates $13.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Motherson Sumi Wiring India Limited generates limited operating cash flow of $5.99B, signaling weaker underlying cash strength.
Free Cash Flow
Motherson Sumi Wiring India Limited produces free cash flow of $4.84B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.73 in free cash annually.
FCF Yield
MSUMI.BO converts 1.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
44.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.34
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.35
vs 25 benchmark
How MSUMI.BO Stacks Against Its Sector Peers
| Metric | MSUMI.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 44.89 | 24.33 | Worse (Expensive) |
| ROE | 33.79% | 1161.00% | Weak |
| Net Margin | 5.46% | 875.00% | Weak |
| Debt/Equity | 0.11 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.62 | 2.83 | Neutral |
| ROA | 13.17% | -8060.00% (disorted) | Strong |
MSUMI.BO outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Motherson Sumi Wiring India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
135.41%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
52.89%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
5036.89%
Industry Style: Cyclical, Growth, Discretionary
High Growth