Stock to BUY under Rs 50: Brokerages bet on 16% upside – Here’s why this auto component stock is in focus – Markets

Stock to BUY under Rs 50: Brokerages bet on 16% upside - Here’s why this auto component stock is in focus - Markets


Stock to BUY under Rs 50: Global brokerages such as Emkay Global Financial Services and Motilal Oswal Financial Services have issued stock recommendations for Motherson Sumi Wiring India, along with price targets below Rs 50, making it an attractive bet for investors looking for stocks to buy under Rs 50.

Motherson Sumi Wiring India is a component of the BSE 500 and is engaged in the business related to auto components and equipment. Additionally, the company has a market capitalisation of ₹25,366.11 crore.

Motherson Sumi Q4 Update

However, the company also recently reported its results, where it posted a revenue growth of 32.90 per cent to Rs 3,334.62 crore and a net profit of Rs 167.30 crore.

Additionally, for the full year FY26, revenue increased 23.14 per cent to Rs 11,477.58 crore, with net profit at Rs 625.18 crore. The Board recommended a final dividend of Rs 0.58 per equity share.

Considering its positive quarterly results, the company has maintained a bullish outlook.

Emkay holds positive outlook

Emkay Global Financial Services maintains an ADD rating on Motherson Sumi Wiring India with a target price of Rs 45, implying over 16 per cent upside from the current market price.

Additionally, the brokerage highlighted that EBITDA margins declined by 143 bps QoQ due to copper inflation, though costs were passed on. Revenue rose 33 per cent YoY on premiumisation and volumes.

Strong orders support momentum, with cost pressures expected to ease in H1FY27, it added.

MOSL notes that the copper price surge impacted margins and led to PAT missing estimates in Q4. However, the demand outlook remains healthy.

The brokerage expects 11 per cent / 18 per cent / 18 per cent CAGR in revenue, EBITDA, and PAT over FY26–28, with premium valuations justified by strong positioning and EV tailwinds.

As of 10:30 am, the stock price of the BSE 500 stock was up 1.5 per cent (Rs 0.60) at Rs 38.68. However, the price went as low as Rs 37.91, reflecting a downside of 3.4 per cent from the previous close of Rs 39.26.

(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.)



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