Stock to BUY below Rs 50: These days, investors often joke that Rs 50 can barely buy anything. But in the stock market, even a share priced below Rs 50 can represent a company worth tens of thousands of crores.
One such stock is Motherson Sumi Wiring India Ltd (MSWIL), an auto components manufacturer and constituent of the BSE 500 index. Despite trading below Rs 40 per share, the company commands a market capitalisation of nearly Rs 25,678 crore.
According to Emkay, Motherson Sumi Wiring India’s technological capabilities and support from the Sumitomo Group continue to enhance its competitive positioning in the automotive wiring harness segment.
The brokerage noted that all three greenfield manufacturing facilities are progressing through the ramp-up phase and are collectively nearing EBITDA breakeven, excluding fluctuations in copper prices. However, a lag in the pass-through of higher copper costs could temporarily weigh on margins during Q1FY27.
Management is targeting an EBITDA margin of 12-13 per cent (excluding the impact of greenfield facilities) by Q2FY27, assuming copper prices remain stable. Emkay also highlighted the company’s disciplined capital allocation strategy, with recent investments expected to generate around 40 per cent return on capital employed (ROCE) upon full ramp-up and achieve payback within 3-3.5 years.
Motherson Sumi Wiring India shares have declined 2.5 per cent over the past week, 6.6 per cent in the last month and 20.8 per cent so far in 2026. The stock has also delivered negative returns over the six-month and two-year periods, while its three-year performance has remained largely flat.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
