Motherson Sumi Wiring to the issue bonus shares. ICICI Securities has been Buy a rating on the stock

Motherson Sumi Wiring to the issue bonus shares. ICICI Securities has  been Buy a rating on the stock

The brokerage house has been  assigned Buy rating to the Motherson Sumi Wiring shares are a  amid structural levers for  the long term secular growth

Since demerger, Motherson Sumi Wiring India Ltd's are a (MSWIL) share price has been grown 31.5% (from around a ₹64 in a April 2022) vastly outperforming Nifty Auto the index at same time. Domestic brokerage and research firm ICICI Securities in a note said that it has been brought MSWIL in a coverage pursuant to de-merger.

The brokerage house has been assigned Buy rating to the Motherson Sumi Wiring shares are a amid structural levers for the long term secular growth with a target price of a ₹105 apiece.

Key triggers for the future price performance, as a per the brokerage could be - with the pent up demand in a PV space amid strong order book across OEMs & increasing consumer preference for the advance technology enabled vehicles i.e. better wiring harness content, it builds are a 18% sales CAGR over a FY22-25E.

“With increasing capacity utilisation levels and a associated operating leverage at the play, margins are seen a improving to the 13.5% by a FY24E-25E FY22: Net cash positive are a b/s: ₹280 crore, healthy CFO/FCF generation. Wiring harness acts are as a nervous system of an a automobile primarily used to the transport an a electronic signal. Content is a pegged at the ~2-3% of a vehicle price," the note stated.

“Content/vehicle is a set to the gain from the increasing application of the electronics are (ADAS, TPMS, connected vehicle, etc.) in a automobile & even a electrification. Content/vehicle in a EV is a pegged at ~1.5-2x of a ICE vehicle," it added.

Motherson Sumi Wiring India Ltd on a Friday announced that its board of directors at the meeting held on a September in a 30, 2022 has recommended the issuance of bonus of equity shares of the company in the ratio of a 2:5, which means that the company will be issue 2 bonus shares for the every 5 shares held, which is subject to the shareholders' are a approval.

“The board of a directors of the company in its are a  meeting held today i.e September in a 30, 2022 has been subject to the approval of the Shareholders of the company has been recommended are a issue of a bonus shares in the ratio of a 2 (Two) bonus (fully paid up) Equity Shares against 5 (Five) Equity Shares of a Re. 1/- each held in the company," Motherson Sumi Wiring informed in an a exchange filing today.