Investing in the stock market requires a keen understanding of various factors that influence stock prices. One such company that intrigues investors is Motherson Sumi Share Systems Ltd. In this comprehensive analysis, we delve into the intricate dynamics of Motherson Sumi Share Systems Ltd stock price, exploring its historical trends, forecasting methods, risks, and investment strategies.
Shareholding pattern
| MAR 2021 | JUN 2021 | SEP 2021 | DEC 2021 | |
| Promoters Holding | 61.73% | 61.73% | 61.73% | 61.73% |
| Fiis Holding | 16.64% | 16.86% | 16.4% | 16.43% |
| Diis Holding | 13.14% | 12.82% | 13.44% | 13.82% |
| Public Holding | 8.49% | 8.6% | 8.43% | 8.03% |
Understanding Motherson Sumi Share Systems Ltd
What is Motherson Sumi Share Systems Ltd?
Motherson Sumi Share Systems Ltd, a prominent player in the automotive industry, specialises in manufacturing automotive wiring harnesses, mirrors, and plastic components. Established in 1986, the company has grown exponentially, expanding its operations globally and catering to leading automotive brands worldwide.
Cash flow
| MAR 2017 | MAR 2018 | MAR 2019 | MAR 2020 | MAR 2021 | |
| Operating activity | 3,799.7 | 3,264 | 4,312.4 | 6,352 | 5,051.3 |
| Financing activity | 5,517.6 | -2,221.4 | -224.6 | -2,802.9 | -2,097.5 |
| Investing activity | -6,145.3 | -3,194.1 | -3,318.5 | -2,220.2 | -1,886 |
| Net cash flow | 3,172 | -2,151.5 | 769.3 | 1,328.9 | 1,067.8 |
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Importance of Stock Price Analysis
Analysing Motherson Sumi Share Systems Ltd stock price is imperative for investors to make informed decisions. The stock price reflects the company’s performance, market sentiment, and industry trends. Through comprehensive analysis, investors can identify potential investment opportunities and mitigate risks effectively.
Factors Influencing Motherson Sumi Share Systems Ltd Stock Price
Several factors influence Motherson Sumi Share Systems Ltd stock price:
- Economic Factors: Fluctuations in economic indicators such as GDP growth, inflation rates, and interest rates impact consumer demand and, consequently, the company’s revenue.
- Industry-specific Factors: Developments in the automotive industry, technological advancements, and regulatory changes affect Motherson Sumi Share Systems Ltd’s competitive position and market share.
- Company-specific Factors: Motherson Sumi Share Systems Ltd’s financial performance, product innovation, management decisions, and mergers and acquisitions significantly influence its stock price.
Balance Sheet
| MAR 2017 | MAR 2018 | MAR 2019 | MAR 2020 | MAR 2021 | |
| Share capital | 140.4 | 210.5 | 315.8 | 315.8 | 315.8 |
| Reserves | 8,132.3 | 9,673.6 | 10,646.9 | 10,945.1 | 12,244.8 |
| Borrowings | 10,349.3 | 10,373.6 | 11,534.2 | 13,136.4 | 11,929.6 |
| Other liabilities | 13,747.7 | 17,240 | 20,833.3 | 21,098.5 | 23,594.8 |
| Total liabilities | 31,943.7 | 36,974.1 | 42,754 | 45,033.1 | 47,748.7 |
| Fixed assets | 15,558.8 | 19,841.3 | 25,417.2 | 30,678.3 | 32,493.6 |
| CWIP | 1,934.8 | 2,584.9 | 1,066.8 | 851.8 | 876.9 |
| Investments | 473.7 | 791.6 | 855.4 | 796.1 | 846.5 |
| Other assets | 17,342.6 | 18,885.3 | 22,409.1 | 22,635.1 | 25,926.2 |
| Total assets | 31,943.7 | 36,974.1 | 42,754 | 45,033.1 | 47,748.7 |
Analysing Historical Motherson Sumi Share Systems Ltd Stock Price Trends
Historical analysis provides valuable insights into Motherson Sumi Share Systems Ltd’s stock price behaviour:
- Over the past decade, Motherson Sumi Share Systems Ltd’s stock price has exhibited steady growth, driven by robust financial performance and strategic expansions.
- Despite occasional fluctuations due to market volatility and external factors, the company’s long-term trajectory reflects resilience and stability.
Profit and loss
| MAR 2017 | MAR 2018 | MAR 2019 | MAR 2020 | MAR 2021 | |
| Sales | 42,375.5 | 56,302.8 | 63,522.9 | 60,728.9 | 57,369.9 |
| Expenses | 38,306.1 | 51,357.9 | 58,174.5 | 56,074.9 | 53,073.3 |
| Operating Profit | 4,069.4 | 4,944.9 | 5,348.4 | 4,654 | 4,296.6 |
| Opm Percent | 9.43 | 8.75 | 8.42 | 7.66 | 7.49 |
| Other Income | 447.3 | 308.2 | 333.3 | 642.4 | 640.9 |
| Interest | 374.9 | 410.8 | 423.2 | 592.8 | 511.5 |
| Depreciation | 1,059.1 | 1,575.2 | 2,058.2 | 2,721 | 2,926 |
| Profit Before Tax | 3,082.7 | 3,267.1 | 3,200.3 | 1,982.6 | 1,500 |
| Tax Percent | 29.53 | 30.83 | 34.44 | 34.71 | -4.63 |
| Net Profit | 1,554.3 | 1,597 | 1,613.1 | 1,170.1 | 1,039.2 |
| Eps | 5.71 | 5.94 | 5.51 | 3.4 | 4.13 |
Forecasting Motherson Sumi Share Systems Ltd Stock Price
Forecasting Motherson Sumi Share Systems Ltd stock price involves integrating quantitative models and qualitative analysis:
- Analyst projections and market consensus provide valuable insights into future stock price movements.
- However, forecasting stock prices remains inherently challenging due to the dynamic nature of financial markets and unpredictable external factors.
Risks and Challenges
Investing in Motherson Sumi Share Systems Ltd stock entails certain risks:
- Market Volatility: Fluctuations in stock prices due to market uncertainty and investor sentiment can lead to potential losses.
- Company-specific Risks: Operational challenges, supply chain disruptions, and regulatory issues may impact Motherson Sumi Share Systems Ltd’s financial performance and stock price.
- Economic Downturns: Economic recessions or industry downturns can adversely affect consumer spending and demand for automotive products, affecting Motherson Sumi Share Systems Ltd’s profitability.
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Strategies for Investing in Motherson Sumi Share Systems Ltd
To navigate the complexities of investing in Motherson Sumi Share Systems Ltd stock, consider the following strategies:
- Long-term Investment: Adopt a long-term perspective, focusing on the company’s fundamentals, growth potential, and industry trends.
- Diversification: Spread investment across various asset classes and industries to mitigate risk and enhance portfolio resilience.
- Research and Due Diligence: Conduct thorough research, analyse financial reports, and stay updated on market developments to make informed investment decisions.
Peer Comparison
| COMPANY | PRICE | MCAP (IN CR) | P/E | P/B | ROE | ROCE | DIVIDENT YIELD |
Motherson Sumi Systems Ltd517334 | ₹119.5 | ₹81,689.76 | 124.28 | 2.6 | 2.77 | 3.47 | 0.54 |
Bosch Ltd500530 | ₹29,870.8 | ₹88,065.35 | 37.88 | 7.6 | 13.21 | 17.68 | 1.61 |
Minda Industries Ltd532539 | ₹719 | ₹41,477.19 | 80.37 | 11.82 | 14.66 | 15.44 | 0.21 |
Exide Industries Ltd500086 | ₹414.1 | ₹33,804.5 | 34.61 | 2.67 | 7.59 | 10.17 | 0.5 |
WABCO India Ltd533023 | ₹13,903.3 | ₹26,888.12 | 66.41 | 10.38 | 15.09 | 19.94 | 0.09 |
Conclusion
Motherson Sumi Share Systems Ltd stock price dynamics is essential for investors seeking to capitalise on investment opportunities in the automotive sector. By analysing historical trends, forecasting future movements, and mitigating risks effectively, investors can make informed decisions to achieve their financial goals.