Motherson Sumi Wiring India Ltd.
ISIN: INE0FS801015 • Market Cap: ₹26,043 Cr
The 5-Pillar Quality Audit for Motherson Sumi Wiring India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (8.7%), Return on Capital Employed (36.4%), and equity compounding (28.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (14.2%) and 3Y PAT CAGR (-0.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 41.51 vs PEG of 2.61 and Dividend Yield of 1.5%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 61.7%, backed by 26.8% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 36.4%)
Motherson Sumi Wiring India Ltd. generates exceptional return on capital employed of 36.4%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 28.9%)
Shareholder equity compounds at a healthy 28.9%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Deep Institutional Sponsorship (26.8%)
Mutual funds, domestic DIIs, and foreign FIIs hold 26.8%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Automobile and Auto Components)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Automobile and Auto Components space.
Quantitative Strategy Eligibility
Checking MSUMI against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 70/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Automobile and Auto Components Sector Peer Comparison
Compare MSUMI directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Motherson Sumi Wiring India Ltd. (MSUMI)Current | 70/100 | ₹26,043 Cr | 41.51 | 36.4% | 0.00 | — |
| Maruti Suzuki India Ltd. (MARUTI) | 71/100 | ₹4.30 Lakh Cr | 30.02 | 15.6% | 0.00 | View |
| Mahindra & Mahindra Ltd. (M&M) | 72/100 | ₹4.24 Lakh Cr | 22.97 | 16.6% | 1.43 | View |
| Bajaj Auto Ltd. (BAJAJ-AUTO) | 77/100 | ₹3.22 Lakh Cr | 27.34 | 25.4% | 0.57 | View |
| Eicher Motors Ltd. (EICHERMOT) | 74/100 | ₹2.19 Lakh Cr | 37.86 | 23.7% | 0.01 | View |
| TVS Motor Company Ltd. (TVSMOTOR) | 68/100 | ₹2.07 Lakh Cr | 60.46 | 29.9% | 3.31 | View |
Frequently Asked Questions: Motherson Sumi Wiring India Ltd.
Q:What is the 5-Pillar Fundamental Score for Motherson Sumi Wiring India Ltd. (MSUMI)?
Motherson Sumi Wiring India Ltd. has a RupeeTools Fundamental Score of 70/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (83/100), Financial Health (86/100), Growth (42/100), Valuation (48/100), and Ownership Quality (78/100).
Q:Is MSUMI fundamentally strong for long-term investment?
Yes, MSUMI exhibits solid fundamental strength with a 70/100 score, driven by a return on equity of 28.9% and a debt-to-equity ratio of 0.00.
Q:Does MSUMI pass the Coffee Can Investing filter?
Yes! MSUMI satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does MSUMI compare against other Automobile and Auto Components peers?
Within India's Automobile and Auto Components sector, MSUMI trades at a P/E of 41.51 and generates an ROCE of 36.4%. Compare its 5-Pillar score of 70/100 against top sector peers like Maruti Suzuki India Ltd. (71/100), Mahindra & Mahindra Ltd. (72/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.