Motherson Sumi share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about Motherson Sumi share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned Motherson Sumi share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
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Motherson Sumi company Profile
Motherson Sumi Systems Limited was incorporated in 1986 and listed in 1993, is listed at the Bombay Stock Exchange and National Stock Exchange of India, in India. The company’s business in India consists of designing, manufacturing, and supplying wiring harness systems to domestic customers in India across segments viz. passenger cars, commercial vehicles, motorcycles/two-wheeler segments, etc.
The Company also exports harnesses to OEMs in Japan, Europe as well as Tier 1 OEM Suppliers (including Company’s subsidiaries for mirrors business). Also, included in the portfolio is designing, development, manufacturing, and supplying of interior and exterior modules as well as plastic components to OEMs in India. Rubber and metal parts are also manufactured and supplied to customers in India and exported to Europe.
Motherson Sumi Systems, including its subsidiaries and JVs, is one of the leading manufacturers of automotive wiring harnesses, mirrors for passenger cars, and a leading supplier of plastic components and modules to the automotive industry. The wiring harness division of Motherson is a full-service system supplier with complete in-house design, development, and manufacturing capability. It is one of the most vertically integrated business divisions with a product range that promotes technological advancement across both the automotive and non-automotive sectors that it supplies to.
Share Holding Pattern
Motherson Sumi share Price Target 2022
FY 2020-21 has been a strong start of the sixth 5-year plan for MSSL. The consolidated revenue of your company ended at INR 598 bn (USD 8.2 bn). Operating EBITDA has gone down by 7% and our PAT reduced by 11%. The company reported a consolidated ROCE of 8%. The standalone ROCE came to 24%. Consolidated annualized ROCE calculated on basis of second half-year results of the financial year 2020-21 is 18%. The dividend payout for FY 2020-21 has been declared at 46% of consolidated profits after taxes, amounting to dividends of INR 1.5 per share. Motherson Sumi has received new orders worth EUR 6.2 bn for SMRP BV during FY 2020-21.
Interestingly, the Battery Electric Vehicles order book share at SMRP BV grew to 25% of SMRP BV’s total order book by the end of FY21. Motherson Sumi Vision 2025 target — a topline of $36 bn with 40% ROCE— is ambitious. Achieving it will require closer teamwork, intense sharing, and a spirit of growing together. Motherson Sumi is moving into new geographies, entering new markets, forming new partnerships, and taking on new clients, and as a family, Motherson Sumi is stepping up to meet these new challenges together.
Despite the pandemic, Motherson Sumi’s organic growth is robust, as the company saw in its Q3 results when the company recorded the highest-ever quarterly revenues of Rs. 17,923 crores. Motherson Sumi order book across the world is strong and growing. Operating cash flows are healthy and as of March 31, 2021, net debt is the lowest in the last 17 quarters. By considering all these factors, Motherson Sumi share price target for 2022 is Rs 171.
|Motherson Sumi share price target 2022|
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Motherson Sumi Share Price Target 2023
Electric Vehicles (EVs) have received increasing attention from car buyers, carmakers, and regulators across the world. In 2020-21, around 3 mn Battery Electric Light Vehicles were produced globally, equaling a share of nearly 4% of the total worldwide light-vehicle assembly (source: IHS Markit LV Engine Forecast May 2021). Forecasters predict rapid growth in this segment with an estimated production of around 17 mn Battery Electric Light Vehicles and a share of more than 17% expected by 2026-27 (source: IHS Markit LV Engine Forecast May 2021).
Electrification is not just happening in light vehicles but also in trucks and two-wheelers. For truck and bus manufacturers, this is a moment of change: the diesel engines that have dominated the industry are in part being replaced by alternative powertrains and engine types. With falling ownership costs and stricter government regulations for emissions, hybrid solutions, electric engines, and fuel-cell powertrains are steadily becoming more and more attractive.
Internal combustion engines (ICE) will likely remain the dominant system both in production and in-vehicle stock for the next few years. However, electric drive trains have become a second viable system. Motherson Sumi customers’ interest in this development is already evident: the Battery Electric Vehicles order book share at SMRP BV grew to 25% of SMRP BV’s total order book by the end of FY21.
Since Motherson does not manufacture engine parts, the shift towards electric engines and fuel-cell power trains will not have a negative effect on our business. On the contrary, the rising share of EV sales has the potential to present new opportunities for Motherson. By considering the opportunities that Motherson Sumi has to grow its business further, Motherson Sumi share price target for 2023 is Rs 204.
|Motherson Sumi share price target 2023|
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Motherson Sumi Share Price Target 2024
In the short and medium-term, subsidies and incentive programs from both governments and car manufacturers will support the shift from internal combustion engines to electrified powertrains; hybrid technology can be seen as a transitional solution. Within the coming decades, many cities, countries, and governments are planning, or have already decided, to ban internal combustion engines from specific areas and to forbid the sale of ICE passenger cars.
Motherson supports its customers wherever they ask for help. With its ever-expanding global presence, Motherson Sumi is well-placed to support the trend towards EVs. As the biggest car market in the world, China has seen strong growth in new-energy vehicle sales over the last few years. This is supported by government subsidies and incentive programs for buying eco-friendly vehicles. In 2020, nearly one million Battery Electric passenger cars were sold in the Chinese market, a market share of around 5%.
Another good example of increased electric mobility is Norway: although the market there is small, in 2020 more than 50% of all newly registered passenger cars had a Battery Electric powertrain. In Germany and the UK, the two biggest markets in Western Europe, new registrations of Battery Electric cars increased by 207% and 186%, respectively. Overall in Western Europe, the share of Battery Electric cars increased to around 7% (2019: 2.5%)
For Motherson and its Vision 2025, this means new opportunities, both through supplying existing products and services to new customers and supporting the change as the preferred solutions provider with new products. The changes in the automotive industry will provide Motherson with other opportunities to increase its presence in the market:
The drive towards electrification is accompanied by a demand for further decreasing the weight of vehicles. To support this, Motherson is developing new materials for instrument panels that have the same strength but are lighter than what is currently available. In addition, we are developing a range of new materials for aesthetic parts such as new finishes and lighting.
To reduce fuel consumption, our Vision Systems and Modules & Polymer Products divisions are working on optimizing the aerodynamics of all our parts. Wiring solutions. For our Wiring Harness division, EVs offer opportunities in the area of high-voltage cable systems as well as a new generation of power management control systems.
The trend towards EVs creates demand for solutions in areas such as charging networks and battery recycling. Our current order book shows strong interest in our customers’ EV models. In addition, the trend towards electrification offers new opportunities in exteriors, interiors, wiring, and infrastructure. Motherson is well-positioned to create value for customers in all of these areas.
By considering all the above-mentioned factors and opportunities that Motherson Sumi has to grow its business in the future, Motherson Sumi share price target for 2024 is Rs 246.
|Motherson Sumi share price target 2024|
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Motherson Sumi Share Price Target 2025
The Lighting & Electronics division is one of the largest premium lighting suppliers in India. The division operates through 17 facilities spread across India and is fuelled by a product line featuring a number of “market firsts” and technological innovations. The Lighting & Electronics division is poised to contribute to the Motherson Vision 2025 through increased value content, new products, expansion into new geographies, new customers, and overall future-readiness.
The division is now exploring the possibilities for LED lighting for two-wheeler applications, an emerging market segment, as well as opportunities to expand into the global market for gas balancers. The division has also gained success in the exports of brushless motors using electronic components for the global HVAC market.
Over the next five years, the Lighting & Electronics division aims to grow in other markets as well. For example, Indian Railways named the division as a supplier of locomotive compressors. The division also capitalized on opportunities presented during the pandemic to enter the medical-compressor market, making significant inroads into this segment in just six months. Both the rail and medical supply industries are well-poised for future growth, and the division is now in a position to capture more of the market share.
The division is also exploring options for strengthening its hold in the aftermarket and accessories segment. Entry into this market will be bolstered by the reputation of Motherson among OEMs for quality products.
The Lighting & Electronics division expects to outpace industry growth over the next five years through a focus on value-added solutions and continued technological innovation. Motherson Sumi also plans to increase its exports by leveraging the strengths of other Motherson companies across the globe. By growing current product lines, integrating new technology, pursuing adjacent expansion, and diversifying into new markets, the division projects a significant contribution towards the group’s target revenue of $36 bn. By considering all these factors, Motherson Sumi share price target for 2025 is Rs 289.
|Motherson Sumi share price target 2025|
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Motherson Sumi Share Price Target 2030
The global aerospace industry market value is expected to reach $5 trillion by 2035, and there is a projected need for 40,000 new aircraft to be delivered by 2040. The fastest-growing regions in the aerospace market will be Asia-Pacific and Western Europe with CAGRs of 3.7% and 1.5%, respectively, followed by the Middle East and North America, where the markets are expected to grow at CAGRs of 1.1% and 0.1%, respectively.
The industry continues to be severely impacted by the COVID-19 crisis, resulting in a significant reduction in revenues. As part of the recovery, experts anticipate fundamental changes in aerospace, including consolidation, a greater drive towards sustainability, and increased automation.
Given the prevailing uncertainty in the industry, it may seem counterintuitive for Motherson to make an entry into this sector now. On the contrary, Motherson sees great opportunity in the present circumstances, and the division has identified three current conditions that make this a key moment for expansion into this segment: the push for localized supply chains and stronger regional ecosystems, the necessity for consolidation, and the possibilities for disruption and innovation.
Motherson brings several assets that distinguish it within the aerospace sector. In addition to its wide global footprint, the division has the material support and technical capabilities of the entire group at its disposal. With these advantages, the company sees a prime opportunity in this changing landscape to gain a foothold in the industry and become a leader in the establishment of the “new normal” in aerospace.
The Aerospace division is starting its journey by focusing on machining and assembly of small to medium-sized detailed parts, from the nose to the tail of the aircraft. In the next phase, Motherson Sumi wants to move to offer high complexity parts and assemblies and start to look at the interiors/cabins segments. This will allow the company to learn and grow, as its customers gain trust and ask the company to do more. The journey is similar to how Motherson Sumi started in automotive, where its customers gradually asked it to support them with more complex parts. Thanks to the size of Motherson today, Motherson Sumi has the means to accelerate this learning and scale up faster.
Motherson Sumi has already taken important steps towards market entry. For example, the division has set up a new 36,600 square-foot Greenfield facility in Noida, dedicated to aerospace. This facility is closely connected with the wiring harness facilities of the group and is production-ready since April 2021. AS9100D certification for this facility is in progress. Though the Aerospace division is relatively new, it is already envisioning global expansion. The team has established criteria for acquisitions based on geography, size, product, and profitability.
Motherson Sumi has also shortlisted potential acquisitions in Europe and is preparing the same for North America. Furthermore, Motherson Sumi is also reviewing strategic assets in France, Germany, the US, and Canada. By considering all these factors, Motherson Sumi share price target for 2030 is Rs 740.
|Motherson Sumi share price target 2030|
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Motherson Sumi Share Price Target 2022, 2023, 2024, 2025, and 2030
|Year||Motherson Sumi share price target|
|Motherson Sumi share price target 2022||Rs 171|
|Motherson Sumi share price target 2023||Rs 204|
|Motherson Sumi share price target 2024||Rs 246|
|Motherson Sumi share price target 2025||Rs 289|
|Motherson Sumi share price target 2030||Rs 740|
Frequently Asked Questions
Can we buy Motherson Sumi?
Yes, You can buy Motherson Sumi for long-term investment. Motherson Sumi is very strong in terms of financials and fundamentals.
What does Motherson Sumi do?
The company’s business in India consists of designing, manufacturing, and supplying wiring harness systems to domestic customers in India across segments viz. passenger cars, commercial vehicles, motorcycles/two-wheeler segments, etc.
Motherson Sumi share price target by 2025?
Motherson Sumi share price target by 2025 is Rs 289.
Motherson Sumi share price target by 2022?
Motherson Sumi share price target by 2022 is Rs 171.
Motherson Sumi share price target by 2030?
Motherson Sumi share price target by 2030 is Rs 740.