Samvardhana Motherson International Limited (MOTHERSON) AI Stock Analysis

• Market Cap: ₹1.10T
• Dividend Yield: 0.49%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 26.2
• Beta (1Y): 1.50
• Revenue Growth: 7.25%
• EPS Growth: -31.46%
• Country: IN
• Employees: 93,971
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.78
• Shares Outstanding: 10,554,077,000
• 10 Day Avg. Volume: 573,705
• 30 Day Avg. Volume: 1,195,965
• PEG Ratio: 0.64
• Price to Book (P/B): 2.60
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 52.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹102.50
• Price Target Upside: -11.87% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹121.00 ▲(4.04% Upside)

Samvardhana Motherson International Limited demonstrates strong financial performance with robust revenue growth and profitability, which is the most significant factor in the score. Technical analysis supports a bullish trend, enhancing the stock's appeal. However, the valuation is relatively high, which could limit upside potential. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for MOTHERSON's products and services, enhancing its market position and supporting long-term business expansion.

Margin Improvement

Improved margins reflect enhanced cost efficiency and pricing power, which contribute to sustainable profitability and competitive advantages in the market.

Balance Sheet Health

A solid equity base and manageable leverage indicate financial stability, providing resilience against economic fluctuations and supporting strategic investments.

Negative Factors

Increasing Liabilities

Rising liabilities could strain financial resources and limit flexibility, potentially impacting the company's ability to invest in growth opportunities or weather downturns.

Cash Flow Decline

A decline in operating cash flow may affect liquidity and the ability to fund operations and investments, posing a risk to financial health if not addressed.

Earnings Per Share Decline

A decline in EPS indicates potential challenges in maintaining profitability, which could affect investor confidence and the company's ability to attract capital.

Samvardhana Motherson International Limited Business Overview & Revenue Model

Company Description

Samvardhana Motherson International Limited engages in the manufacture and sale of components for automotive original equipment manufacturers in India and internationally. The company offers interior and exterior mirrors, and camera-based detection systems; modules and polymer products; cutting and gear cutting tools, and machining of high precision metal machined components; and technology, engineering, and manufacturing solutions. It also provides exterior lighting and electronics, passenger car HVAC and compressors, body control module, struts, shock absorbers, and backyard integration products; logistics solutions; and health and medical products, solutions, and services, as well as integrated solutions for aerospace industry. In addition, the company offers industrial park; manufacturing engineering, consultation, project management, and turnkey supplies to the automotive industry; and machine tools and hydraulic products trading. Further, it designs, manufactures, and integrates electrical distribution systems, electronics, and related components for commercial vehicle industries, rolling stock manufacturers, and other related segments. The company was formerly known as Motherson Sumi Systems Limited and changed its name to Samvardhana Motherson International Limited in May 2022. The company was incorporated in 1986 and is headquartered in Noida, India.

How the Company Makes Money

MOTHERSON generates revenue primarily through the manufacturing and supply of automotive components, with key revenue streams including the production of wiring harnesses, interior and exterior automotive parts, and modular systems. The company has established long-term partnerships with several leading automotive companies, which secure consistent orders and revenue. Additionally, MOTHERSON benefits from its global presence, allowing it to tap into various automobile markets and leverage economies of scale. The company's focus on research and development also enables it to introduce new products and technologies, further driving growth and profitability.

Samvardhana Motherson International Limited Financial Statement Overview

Summary

Samvardhana Motherson International Limited has demonstrated strong financial performance with significant revenue growth and improved margins. The balance sheet is stable with moderate leverage, though increasing liabilities need monitoring. Cash flow stability is a concern due to reduced operational inflows, but positive free cash flow is maintained.

Income Statement

Samvardhana Motherson International Limited demonstrated strong revenue growth with an increase from 977.794 billion to 1.1254 trillion, representing a growth rate of 15.8% in the most recent year. The gross profit margin improved significantly to 45.8%, indicating improved cost efficiency. Net profit margin and EBIT margin were stable at 3.4% and 5.4% respectively, showing consistent profitability. EBITDA margin was robust at 10.3%, reflecting strong operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with an equity ratio of 37.6%, indicating a solid equity base. The debt-to-equity ratio is manageable at 0.49, suggesting moderate leverage. Return on equity improved to 10.9%, reflecting efficient use of equity capital. However, the total liabilities have increased, which is a point of concern for future leverage risk.

Cash Flow

The cash flow statement shows a decline in operating cash flow from 75.689 billion to 62.8618 billion, impacting the operating cash flow to net income ratio, which stood at 1.65. Free cash flow decreased significantly by 49.9% from the previous period, reflecting higher capital expenditures, yet it remains positive, indicating sound cash management. The free cash flow to net income ratio is at 0.45, showing adequate coverage.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.15T	1.13T	981.55B	782.17B	633.41B	571.74B
Gross Profit	507.81B	496.78B	419.47B	315.10B	254.36B	235.09B
EBITDA	99.55B	103.98B	92.99B	58.69B	42.97B	42.58B
Net Income	33.21B	38.03B	27.16B	14.96B	8.74B	10.39B
Balance Sheet
Total Assets	0.00	928.47B	850.22B	618.52B	562.70B	480.85B
Cash, Cash Equivalents and Short-Term Investments	60.00B	115.00B	76.81B	46.95B	51.93B	59.83B
Total Debt	0.00	172.22B	199.22B	137.92B	141.30B	119.30B
Total Liabilities	-371.29B	557.19B	568.06B	374.75B	339.06B	315.01B
Stockholders Equity	371.29B	348.80B	261.55B	224.51B	205.88B	125.61B
Cash Flow
Free Cash Flow	-2.09B	17.25B	34.44B	24.22B	-454.00M	30.81B
Operating Cash Flow	10.20B	62.86B	75.69B	46.43B	24.63B	50.51B
Investing Cash Flow	-14.24B	-48.62B	-66.62B	-22.45B	-23.12B	-18.93B
Financing Cash Flow	59.44B	-25.51B	12.81B	-27.34B	-12.17B	-20.98B

Samvardhana Motherson International Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 116.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MOTHERSON, the sentiment is Positive. The current price of 116.3 is above the 20-day moving average (MA) of 108.66, above the 50-day MA of 107.31, and above the 200-day MA of 97.22, indicating a bullish trend. The MACD of 2.27 indicates Negative momentum. The RSI at 70.88 is Negative, neither overbought nor oversold. The STOCH value of 83.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MOTHERSON.

Samvardhana Motherson International Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGBBROSLTD	76 Outperform	₹57.93B	17.95	―	1.08%	14.37%	12.68%
MOTHERSON	72 Outperform	₹1.10T	26.25	―	0.49%	7.25%	-31.46%
VARROC	69 Neutral	₹95.64B	71.43	―	0.15%	7.38%	-73.62%
UNOMINDA	66 Neutral	₹721.66B	69.49	―	0.17%	17.14%	17.75%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ENDURANCE	59 Neutral	₹408.13B	47.52	―	0.38%	15.84%	14.80%
SUPREMEIND	56 Neutral	₹493.75B	58.23	―	1.01%	1.68%	-22.27%

Samvardhana Motherson International Limited Corporate Events

Samvardhana Motherson Faces GST Penalty, Plans Appeal

Samvardhana Motherson International Limited has received a penalty order from the Joint Commissioner (ST), GST Appeals, Chennai, for non-payment of GST on guarantee commissions related to corporate guarantees for its subsidiaries. The penalty amounts to INR 38,82,240, but the company asserts that it has already discharged the GST liability under Uttar Pradesh GST registration. As a result, the company plans to appeal the order, and it states that there is no material impact on its financials or operations.

Samvardhana Motherson Appoints New Chief Procurement Officer

Samvardhana Motherson International Limited has announced the appointment of Mr. Hemant Barge as the new Chief Procurement Officer, effective October 29, 2025. Mr. Barge, with over three decades of experience at Tata Motors, brings extensive expertise in sourcing, manufacturing, and business transition, which is expected to enhance the company’s operational efficiency and strengthen its market position.

Samvardhana Motherson Announces Leadership Changes to Drive Vision 2030

Samvardhana Motherson International Limited announced a significant leadership transition to align with its Vision 2030 goals. Kunal Malani has been appointed as President of Group Strategy & Transformation, stepping down from his role as Chief Financial Officer, while Gandharv Tongia takes over as the new Group CFO. These changes are expected to strengthen the company’s strategic initiatives and financial management, potentially impacting its market positioning and stakeholder relations positively.

Samvardhana Motherson’s Subsidiary Faces Tax Penalty in Argentina

Samvardhana Motherson International Limited’s indirect subsidiary, Motherson SAS Automotive Modules and Services Argentina S.A., has been penalized by the Agencia de Recaudacion de Control Aduanero for claiming non-compliant tax credits from 2019 to 2023. The penalty, amounting to ARS 56,436,886.20, relates to a period before the company’s acquisition of the business. The company states there is no material impact on its financial or operational activities and plans to address the issue with the seller under indemnity provisions.

Samvardhana Motherson Advances Share Capital Reduction Scheme for Subsidiary

Samvardhana Motherson International Limited announced an update regarding the scheme for the reduction of share capital by its subsidiary, Motherson Technology Services Limited (MTSL). The company, which holds a 92.96% stake in MTSL, is seeking approval from the National Company Law Tribunal to make MTSL a wholly-owned subsidiary. This move is part of the company’s strategic efforts to streamline its operations and strengthen its control over MTSL, potentially enhancing its market positioning and operational efficiency.

Samvardhana Motherson Restructures with Subsidiary Merger

Samvardhana Motherson International Limited announced the merger of its indirect subsidiary, SMP Automotive Solutions Slovakia s.r.o., with Motherson SAS Automotive Systems and Technologies Slovakia s.r.o. This merger, completed on October 8, 2025, led to the deregistration and cessation of SMP Slovakia. The merger is part of the company’s strategic restructuring, although SMP Slovakia contributed a minor percentage to the company’s overall revenue and net worth in the last financial year.

Samvardhana Motherson to Fully Acquire Motherson Technology Services

Samvardhana Motherson International Limited’s Board of Directors has approved a scheme for the reduction of share capital by its subsidiary, Motherson Technology Services Limited (MTSL). This move will result in MTSL becoming a wholly-owned subsidiary of SAMIL, as the company plans to reduce the shareholding of certain minority shareholders. The process involves a payout of approximately INR 335.25 million, with INR 150.76 million attributable to the promoters and promoter group. This strategic decision aims to consolidate SAMIL’s control over MTSL, potentially enhancing operational synergies and streamlining management within the group.

Samvardhana Motherson to Acquire Majority Stake in Yutaka Giken

Samvardhana Motherson International Limited has announced the approval of its Board of Directors to acquire an 81% stake in Yutaka Giken Co., Ltd., a company listed on the Tokyo Stock Exchange, and an 11% stake in Shinnichi Kogyo Co., Ltd. through its subsidiary, Motherson Global Investments B.V. Additionally, the company plans to acquire 100% of the shares and voting rights in Yutaka Autoparts India Private Limited from Yutaka Giken. This strategic acquisition is expected to enhance Samvardhana Motherson’s market presence in Japan and India, potentially strengthening its position in the automotive components sector.

Samvardhana Motherson Expands Stake in Youngshin Motherson Auto Tech

Samvardhana Motherson International Limited has announced the approval by its Board of Directors to acquire an additional 20% stake in Youngshin Motherson Auto Tech Limited, making it a wholly owned subsidiary. This strategic move is part of SAMIL’s ongoing efforts to consolidate its holdings and enhance its operational capabilities, particularly in the auto clutch product segment. The acquisition does not require any governmental or regulatory approvals and follows a previous increase in stake from June 2023. This development is expected to bolster SAMIL’s market position and operational efficiency, benefiting stakeholders by potentially increasing the company’s competitive edge in the automotive components industry.

Samvardhana Motherson Announces AGM Voting Results

Samvardhana Motherson International Limited announced the results of its 38th Annual General Meeting held on August 28, 2025, through video conferencing. The meeting included the presentation of voting results and a scrutinizer’s report on remote e-voting and voting conducted at the AGM, in compliance with SEBI regulations. This announcement reflects the company’s adherence to regulatory requirements and its ongoing efforts to maintain transparency and engagement with its stakeholders.