Motherson Sumi Wiring gains amid stock market crash as board to meet this week to consider bonus share issue

Motherson Sumi Wiring India share price in focus: Despite the sell-off across the broader market, shares of Motherson Sumi Wiring India—a prominent automotive products manufacturer—rose 1.3% in early trade on Tuesday, May 27, reaching a three-month high of ₹59.75 apiece as investors reacted positively to the company's plan to consider a bonus issue.

In an exchange filing on Monday, the company announced that its board will meet on May 29, 2025, to consider recommending the issuance of bonus shares.

“We wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Thursday, May 29, 2025, inter alia, to consider the proposal for issuance of bonus shares to the equity shareholders of the Company,” the company said in its regulatory filing.

If approved, this would mark the second bonus issue by the company in the last 2.5 years. In November 2022, the company had announced a bonus issue in the ratio of 2:5, according to the latest Trendlyne data.

The company reported a lower net profit in the March quarter as higher costs weighed on its margins, particularly due to a sharp rise in copper prices, which impacted profitability. Motherson Sumi Wiring India, which supplies wiring harness solutions to carmakers including Maruti Suzuki and Tata Motors, reported a net profit of ₹165 crore, down from ₹191 crore in the same quarter last year.

Revenue from operations during the reporting quarter rose to ₹2,510 crore, up from ₹2,233 crore in Q4FY24. Operating expenses surged 15% year-on-year to ₹2,238 crore. The company, which counts copper as a key raw material, said costs remained elevated during the January-to-March period. Its input costs rose 12% to ₹1,593 crore in the quarter.

Meanwhile, Motherson Sumi is setting up greenfield plants to support its automotive clients, with projects at various stages of completion. The company stated that one of the three greenfield plants has commenced production this year, while the other two are progressing well and remain on track to begin operations as scheduled.

According to its investor presentation, the expansion plans had an impact of ₹23 crore on profit after tax during the March quarter.

Motherson Sumi Wiring share price trend

The company’s shares have maintained a steady upward trend over the past three months, including gains in May, rising by 26% so far. This rally follows a sharp correction between June 2024 and February 2025, during which the stock declined by 37%.

From its all-time high of ₹80 apiece, recorded in June 2024, the stock is currently trading 26% lower. Motherson Sumi Wiring India is a joint venture between Samvardhana Motherson International Limited (SAMIL) and Sumitomo Wiring Systems, Ltd. (SWS).

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