Motherson Wiring (MSUMI)

FairStock Score: 68/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me look at Motherson Wiring the way I'd look at any business. It has many qualities I admire: high return on equity of 36.67%, return on capital employed of 42.53%, negligible debt at 0.16 times equity, and a Piotroski score of 8 out of 9. The company generated ₹305 Cr of free cash flow and the Altman Z-score of 8.85 suggests no financial distress. Promoters own 61.72%, so their interests are aligned with mine. These are attributes of a good business. But a good business is not always a good investment. At ₹40.53, the market capitalisation is ₹28,649 Cr, which is 46 times trailing earnings and 15.83 times book value. EV/EBITDA of 25.18 and a PEG of 2.82 tell me the optimism is already baked in. Graham would insist on a margin of safety; here I calculate a negative margin of nearly 484%. The Graham Number is ₹7.40 and even a conservative DCF lands at ₹6.82 — far below the current price. Revenue grew 17.79%, yet profits fell 1.51%, so the expansion is not dropping to the bottom line. Latest quarterly net profit of ₹149 Cr on sales of ₹2,887 Cr is a thin 5.2% margin. I would rather wait for a better price and proof that margins are stabilising before putting my money to work. Patience is the investor's greatest ally.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer