Motherson Wiring lists at Rs 65.02 per share; details here

Motherson Sumi Wiring India Limited, which is a domestic wiring harness business, listed on Monday. At Rs 65, it was bang in line with the range of Rs 60 to Rs 70 that most brokerages had put out, so no surprises there.

However, this domestic wiring harness business is very strong. The company has a market share of over 40 percent. It is an extremely mature business, the company has been seeing a ROCE (return on capital employed) of around 50 percent for the last many years in this business.

There is a lot of growth potential here as well because the company can benefit from increased premiumisation, increase electrification, and they supply to a lot of the electric passenger vehicle makers as well. Looking at the fundamentals of this business, the margins have been quite strong between 11 and 13 percent band, it is a profitable business, and the revenue growth has been good.