Motherson Sumi Wiring surges 6% on fixing record date for 1:2 bonus issue

Business Standard

08-07-2025

Motherson Sumi Wiring has fixed July 18, 2025 as 'Record Date', for the purpose of ascertaining the eligibility of shareholders entitled for issuance of bonus shares by the company.
SI Reporter Mumbai
Motherson Sumi Wiring India share price
Shares of Motherson Sumi Wiring India (MSWIL) hit an over six-month high at ₹65.47, as they rallied 6 per cent on the BSE in Tuesday's intra-day trade backed by heavy volumes after fixing the record date for 1:2 bonus issue.
The stock price of this auto ancillary company was quoting at its highest level since December 2024. It had hit a 52-week high of ₹77 on July 29, 2024.
At 02:40 PM; MSWIL was trading 5 per cent higher at ₹65, as compared to 0.04 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped over four-fold. A combined 22.72 million equity shares changed hands on the NSE and BSE.
Motherson Sumi fixes July 18, 2025 as record date for 1:2 bonus issue
The board of directors of the company at their meeting held on May 29, 2025 recommended issue of bonus shares to the shareholders in the ratio of 1 (one) bonus equity share against 2 (two) existing equity shares, subject to the approval of the shareholders.
On July 7, after market hours, MSWIL informed that the company fixed July 18, 2025 as 'Record Date', for the purpose of ascertaining the eligibility of shareholders entitled for issuance of bonus shares by the company.
Motherson Sumi - Company outlook
In the March 2025 quarter, MSWIL delivered robust performance, with revenue growth surpassing industry averages. While maintaining a debt-free status and a strong focus on enhancing operational efficiencies, the management said the company was investing in expanding its capacities. This will allow the company to scale production to meet our customers' evolving requirements for current and future internal combustion engine (ICE) and electric vehicle (EV) programs.
MSWIL is in the process of setting up three Greenfield plants for new programs (EV/ICE) for Maruti Suzuki, Mahindra, and Tata Motors. These plants are located in Pune (Maharashtra), Navagam (Gujarat), and Kharkhoda (Haryana). These Greenfield plants are in different stages of completion and ramp-up.
The management anticipates annual revenues of approximately ₹2,100 crore to come on stream, once all the plants are in production phase by H2FY26. Analysts at Choice Equity Broking believe the EBITDA margin will remain impacted for the coming quarters, with normalization in margin to be seen by H2FY26 as new plants start production and ramp up. Start-up costs will likely peak in H1CY25 and moderate thereafter, with a positive contribution expected from Q4FY26.
The brokerage firm remains constructive on the long-term opportunity as the company is well-positioned to benefit from the industry's shift toward EV and hybrid powertrains, which is expected to drive an increase in content per vehicle. Ongoing capacity expansion and incremental order wins should support a steady growth trajectory over the medium term.
Meanwhile, analysts at Elara Securities India believe the actualization of these revenues will be subject to ramp-up of the models in new plants and how these new models cannibalize existing models in the industry (thus restricting MSWIL's outperformance versus industry growth in a meaningful way). The brokerage firm in the quarterly update said that they also monitor margin profile of new orders; especially in high voltage wiring harness (herein margins are expected to be lower than the company average initially).
About Motherson Sumi Wiring India Limited (MSWIL)
Motherson Sumi Wiring India Limited (MSWIL) is a leading and fast-growing full-system solutions provider to original equipment manufacturers (OEMs) in the wiring harness segment in India.
Motherson Sumi Wiring India is a joint venture between Samvardhana Motherson International Limited (SAMIL) and Sumitomo Wiring Systems, Ltd. (SWS). MSWIL has a product profile that benefits from favourable industry trends of premiumisation, which leads to an increase in automobile electrification and supports current and future automotive trends.