Is It a Good Time to Buy Motherson Sumi Shares?

Motherson Sumi Wiring India Limited specialises in full-system solutions and serves a broad spectrum of automotive and other industries clients. The company's main business is producing and selling parts to original equipment manufacturers for automobiles. The Motherson Group's flagship company, Motherson Sumi, has more than 230 sites spread across 41 nations and five continents.

SamvardhanaMotherson International Limited is a joint venture with Sumitomo Wiring Systems Limited, a leader in producing wiring harnesses, harness components, and other electrical wires worldwide.Reydel Group, with its headquarters in France, was acquired by MSSL in 2018; as a result, SamvardhanaMothersonReydel Companies was formed.

The result has been quite positive: the complementary nature of the product lines and increased global reach have led to closer customer relationships, particularly with French OEMs, which promise future product development, innovation, and expansion. The Motherson Sumishare price at the time of writing the article is Rs. 81.15, and its market capitalisation stands at Rs. 25,610.84 crore.Highlights of Motherson Sumi Q2FY23 quarterly results are as follows:

1. Revenues for the quarter were Rs. 1,835 crore, up 31%.
2. EBITDA for the quarter was Rs. 190 crore, up 2%.
3. PAT for the quarter was Rs. 116 crore, up 2%.

Some positive aspects to consider about MothersonSumi share price are as follows:

1. The company has strong annual EPS growth.
2. Another positive aspect is the low debt component.
3. Lastly, the company has seen increasing revenue every quarter in the last three quarters.

However, besides the positive aspects, the company has some weaknesses which you should focus upon:

1. In the last quarter, mutual funds reduced their shareholding in the company.
2. The company has seen a decline in net profit leading to falling profit margins.
3. First Negative Breakdown Support

Conclusion

Motherson Sumi seems like a strong share to get hold of. The investor can consider buying the share.However, it is essential that all the aspects, whether fundamental or technical, be kept in mind.An investor should also try not to invest in just one share. Diversification is the key to avoiding unforeseen changes in the stock market.For now, Motherson Sumi can be considered as a buy option.