 "Motherson Sumi Wiring shares soar 10%; here's what is fueling the rally")
Shares of auto components and equipment manufacturer Motherson Sumi Wiring India were in high demand on the bourses, climbing as much as 10 per cent during Tuesday’s trading session, August 19, 2025.
The counter surged 9.98 per cent to reach ₹43.40 during intraday deals on the NSE and continued to trade higher through the session. At last check, Motherson Sumi Wiring India shares were trading at ₹42.24 apiece, up 7.05 per cent from the previous close of ₹39.46. A combined total of nearly 33.89 million equity shares, estimated to be worth ₹144 crore, changed hands on both the NSE and BSE.
Why were Motherson Sumi Wiring India shares trading higher today?
The rally in the company’s share price followed a positive report from brokerage firm Nuvama, which maintained a ‘Buy’ rating on the stock with a target price of ₹57 per share.
After meeting with the company’s management, Nuvama analysts highlighted that company's three greenfield projects have a combined revenue potential of ₹2,100 crore. The Pune and Navagam plants have already commenced operations and are being ramped up, while the Kharkhauda plant is expected to come online in Q2. The two active plants are currently supplying high- and low-voltage harnesses to Maruti Suzuki, Tata Motors, and Mahindra & Mahindra (M&M).
The Analysts believe that these greenfield ramp-ups will significantly support the company’s growth. According to their report, the upcoming plants are linked to confirmed new vehicle launches, rather than mid-cycle updates, ensuring clear volume visibility and lower execution risk.
"Strategically located near key automotive hubs, the facilities enable just-in-time delivery, reduce logistics costs, and improve responsiveness to customer needs. Designed to support EV, ICE, and hybrid platforms, they provide flexibility to adapt as propulsion technologies evolve. The ramp-up, phased across Q1 and Q2 of FY26, allows for smoother capacity absorption and operational stability. Led by the greenfield ramp-ups, we forecast revenue and earnings CAGR of 13 per cent and 19 per cent respectively over FY25–28E," the analysts wrote in their research note.
They also noted that the recently reported operating margin of around 10 per cent was impacted by startup costs from these greenfield projects, but the adjusted margin is estimated to be closer to 12 per cent. That apart, despite competition from peers like Yazaki and Aptiv, MSUMI, analysts believe, benefits from scale, giving it a cost advantage.
"Given the ramp-ups at the greenfield plants, we expect revenue and earnings to compound at 13 per cent and 19 per cent over FY25–28E. We retain our ‘BUY’ rating with a target price of ₹57," the analysts wrote in the report.
Sector-wide rally, GST optimism further lift sentiment
The rally in Motherson Sumi Wiring India’s share price also aligns with a broader uptrend in auto sector stocks, as the Nifty Auto index led sectoral gains on the NSE with an intra-day rise of 1.22 per cent.
Investor sentiment was boosted by news that the government is planning to rationalise the Goods and Services Tax (GST) structure, as announced by the Prime Minister during his 79th Independence Day speech. The central government has proposed merging the existing four GST slabs (5 per cent, 12 per cent, 18 per cent, and 28 per cent) into primarily 5 per cent and 18 per cent slabs, a move seen as beneficial for manufacturers and consumers alike.
About Motherson Sumi Wiring India
Motherson Sumi Wiring India was incorporated in 2020 as a subsidiary of Samvardhana Motherson International Limited. It operates as a joint venture between Samvardhana Motherson International and Sumitomo Wiring Systems Limited, Japan.
The company manufactures and sells wiring harnesses and related components for automotive original equipment manufacturers (OEMs), providing full-system solutions across ICE, hybrid, and EV platforms.
As of August 19, 2025, the company’s market capitalisation stood at ₹28,045.30 crore on the NSE.