Motherson Sumi Wiring shares jump 13% after strong second-quarter results

Motherson Sumi Wiring India shares jumped 13% in Monday's trading session after the auto company reported its July-September quarter results. The shares opened at ₹38 each, compared to the previous close of ₹35.14, and touched an intraday high of ₹39.82 on 2 November. Around 1,422.68 lakh shares changed hands during the session.

Financial Growth

The auto parts company reported a 35% year-on-year increase in net profit to ₹223 crore, up from ₹165 crore in the same quarter of the previous financial year. Revenue from operations surged 47% to ₹4,504 crore compared to ₹2,752 crore in the year-ago period. On a sequential basis, profit after tax rose 54% from ₹145 crore in the first quarter of FY27, while revenue grew by 19%. Earnings before interest, tax, depreciation and amortisation climbed 45% to ₹374 crore from ₹258 crore.

Management View

The company credited its growth to premiumisation, higher content per vehicle, and new business wins across electric vehicle and internal combustion engine models. Chairman Vivek Chaand Sehgal stated that the resilient performance reflects sustained customer confidence and strong execution capabilities. He noted that teams remain focused on operational efficiency and financial discipline despite elevated copper prices and other cost pressures.

Brokerage Updates

Brokerage firm Elara Securities upgraded the stock to a buy with a revised target price of ₹42, citing favorable valuations and bottoming margins. Ekay Global retained its buy rating while cutting its target price by 10% to ₹45 per share due to rising macroeconomic risks.

Context

Auto ancillary companies supply vital components like wiring harnesses to vehicle manufacturers, making their financial results a key indicator of broader automotive sector health. Companies in this space often navigate commodity price fluctuations, such as changes in copper costs, by focusing on operational efficiencies and higher-value product offerings.