Jan 30 (Reuters) — Motherson Sumi Wiring India reported a 7% increase in quarterly profit on Friday, helped by steady auto parts demand from carmakers selling more units after recent tax cuts.
Profit rose to 1.49 billion rupees ($16.20 million) in the quarter ended December 31, from 1.4 billion rupees a year ago.
The company, which sells wiring harnesses to several major carmakers, reported a 26% rise in revenue from operations to 28.87 billion rupees.
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KEY CONTEXT
Motherson Sumi has been expanding production capacity to support wiring demand for both electric and gas-powered vehicles amid increasing car demand after the government announced sweeping consumption tax cuts in September.
Car sales in India are set to touch 6 million by 2030, according to S&P Mobility data, with a rapid increase in demand for sports utility vehicles (SUV) and premium vehicles.
France’s Renault unveiled a new model of its SUV Duster in India this month, becoming the latest carmaker to launch a new car after releases by domestic giants Tata Motors and Mahindra.
PEER COMPARISON
Valuation Estimates (next Analysts’ sentiment
(next 12 12 months)
months)
RIC PE EV/EBI Price/ Mean # of Stock to Div
TDA Sales Revenue rating* analysts price yield
growth Profit target** (%)
(%) growth
(%)
Motherson MSWI.NS 32.13 19.99 NULL 15.89 29.02 Buy 12 0.81 1.34
Sumi Wiring
India Ltd
Bosch Ltd BOSH.NS 39.58 34.34 NULL 10.27 13.28 Hold 3 1.06 1.42
UNO Minda Ltd UNOI.NS 44.73 25.80 NULL 17.67 25.97 Hold 17 0.87 0.20
Exide EXID.NS 20.66 12.19 NULL 8.14 16.38 Hold 12 0.81 0.62
Industries
Ltd
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
OCTOBER-DECEMBER STOCK PERFORMANCE FOR PEERS
— All data from LSEG
— $1= 91.9510 Indian rupees
(Reporting by Praveen Paramasivam in Chennai and Surbhi Misra and Komal Salecha in Bengaluru; Editing by Sonia Cheema)