Samvardhana Motherson International Limited (MOTHERSON) AI Stock Analysis

• Market Cap: ₹1.18T
• Dividend Yield: 0.47%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 30.9
• Beta (1Y): 1.60
• Revenue Growth: 7.25%
• EPS Growth: -36.27%
• Country: IN
• Employees: 93,971
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.97
• 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: ₹142.00
• Price Target Upside: 27.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.74
• Revenue Forecast (FY): ₹1.25T

• Rating: 72 Outperform
• Price Target: ₹135.00 ▲(20.97% Upside)
• Action: Upgraded Date: 11/14/25
• Date: Action: Upgraded 11/14/25

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 & rising gross margin

Sustained top-line growth (15.8% year) plus a materially higher gross margin (45.8%) indicate stronger product mix, pricing or cost discipline. These durable improvements enhance long-term profitability potential, support reinvestment in tooling and programs, and strengthen competitiveness across OEM platforms.

Healthy balance sheet and moderate leverage

A solid equity base (37.6%) and sub-0.5 debt/equity ratio provide financial flexibility to fund capital expenditures, acquisitions, and program ramp-ups without excessive refinancing risk. Improved ROE (10.9%) signals efficient capital use that supports long-term shareholder value creation.

Positive free cash flow and strong EBITDA margin

Positive free cash flow and a healthy EBITDA margin (10.3%) show the business generates operating cash and has underlying operational leverage. Even with FCF compression, continued positive cash generation supports program investments, working capital needs and gives capacity for strategic spending.

Negative Factors

Declining operating and free cash flow

A meaningful drop in operating cash flow and nearly 50% fall in free cash flow weaken the company’s internal funding ability. Over several quarters this reduces buffers for capex, program tooling and debt repayment, potentially forcing reliance on external financing or slower reinvestment.

Rising total liabilities

An increase in total liabilities, even with current moderate leverage metrics, raises the risk of higher interest and refinancing exposure if the trend continues. Coupled with weaker cash conversion, growing liabilities could constrain strategic flexibility and increase credit sensitivity over time.

Thin net margins and EPS contraction

A modest net margin (3.4%) leaves limited room to absorb cost inflation or pricing pressure from OEMs. The large negative EPS growth suggests earnings volatility or one-off impacts that reduce retained earnings and could limit the company’s ability to consistently fund growth or returns to shareholders in the medium term.

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 primarily makes money by manufacturing and selling automotive components and systems to original equipment manufacturers (OEMs) and other automotive suppliers under long-term, program-based supply arrangements tied to specific vehicle platforms and production volumes. Its key revenue streams come from (1) wiring harnesses and electrical distribution systems sold per vehicle (often as engineered-to-spec assemblies with customer-specific designs, tooling, and quality requirements), (2) mirrors/vision systems and related assemblies supplied to OEM production lines, and (3) other module and component businesses (including polymer and precision/metal or other value-added assemblies) sold either as individual parts or as integrated modules. Revenue is generally recognized on the sale/delivery of manufactured goods; pricing is typically agreed with customers and can include pass-through elements for raw materials, periodic price adjustments, and compensation mechanisms linked to commodity or currency movements depending on contract terms. Earnings are supported by scale manufacturing, global footprint near customer plants, operational efficiencies, and winning/retaining vehicle platform programs; once a supplier is selected for a vehicle program, recurring production orders typically continue for the life cycle of that model, subject to performance and volume changes. The company also benefits from cross-selling multiple product lines to the same OEMs and from acquisitions and integration of new component capabilities that expand its content per vehicle; specific partnership details beyond customer-supplier relationships with OEMs are null.

Samvardhana Motherson International Limited Financial Statement Overview

Summary

Samvardhana Motherson International Limited has shown strong growth and profitability with a notable increase in revenue and margins. The balance sheet remains stable with moderate leverage, although increasing liabilities warrant monitoring. Cash flow stability is a concern due to reduced operational inflows, but the company maintains positive free cash flow. Overall, the financial health is robust with a positive growth trajectory, but caution is advised regarding leverage and cash flow management.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.17T	1.13T	981.55B	782.17B	633.41B	571.74B
Gross Profit	515.67B	496.78B	419.47B	315.10B	254.36B	235.09B
EBITDA	103.48B	103.98B	92.99B	58.69B	42.97B	42.58B
Net Income	32.68B	38.03B	27.16B	14.96B	8.74B	10.39B
Balance Sheet
Total Assets	1.01T	928.47B	850.22B	618.52B	562.70B	480.85B
Cash, Cash Equivalents and Short-Term Investments	130.01B	115.00B	76.81B	46.95B	51.93B	59.83B
Total Debt	197.77B	172.22B	199.22B	137.92B	141.30B	119.30B
Total Liabilities	612.30B	557.19B	568.06B	374.75B	339.06B	315.01B
Stockholders Equity	371.32B	348.80B	261.55B	224.51B	205.88B	125.61B
Cash Flow
Free Cash Flow	7.24B	17.25B	34.44B	24.22B	-454.00M	30.81B
Operating Cash Flow	34.19B	62.86B	75.69B	46.43B	24.63B	50.51B
Investing Cash Flow	-23.90B	-48.62B	-66.62B	-22.45B	-23.12B	-18.93B
Financing Cash Flow	-1.90B	-25.51B	12.81B	-27.34B	-12.17B	-20.98B

Samvardhana Motherson International Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 111.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MOTHERSON, the sentiment is Negative. The current price of 111.6 is below the 20-day moving average (MA) of 123.04, below the 50-day MA of 120.86, and above the 200-day MA of 109.42, indicating a neutral trend. The MACD of -3.09 indicates Positive momentum. The RSI at 37.17 is Neutral, neither overbought nor oversold. The STOCH value of 17.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹54.54B	16.13	―	1.07%	14.37%	12.68%
MOTHERSON	72 Outperform	₹1.18T	30.91	―	0.47%	7.25%	-36.27%
VARROC	69 Neutral	₹76.08B	-220.37	―	0.16%	7.38%	-73.62%
UNOMINDA	66 Neutral	₹615.01B	67.05	―	0.17%	17.14%	17.75%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ENDURANCE	59 Neutral	₹320.87B	41.08	―	0.38%	15.84%	14.80%
SUPREMEIND	56 Neutral	₹486.20B	69.47	―	1.05%	1.68%	-22.27%

Samvardhana Motherson International Limited Corporate Events

Samvardhana Motherson lists INR 250 crore commercial paper on BSE

Samvardhana Motherson International Limited has listed a new tranche of commercial paper worth INR 250 crore on BSE Limited, structured as 5,000 unsecured instruments with a face value of Rs. 500,000 each. The paper carries a coupon of 6.00%, was issued on March 17, 2026, matures on June 12, 2026, and is placed in favour of BNP Paribas, with interest charged upfront.

The short-tenor, unsecured issuance underscores the company’s use of money-market instruments to meet near-term funding needs while maintaining flexibility in its capital structure. The successful listing and clearly defined terms signal continued access to institutional debt markets, which may support liquidity management and ongoing operational requirements without diluting equity holders.

Motherson Expands Renewable Push With New Energy Subsidiary

Samvardhana Motherson International Limited has announced that its wholly owned subsidiary, Motherson New Energy Limited, has incorporated a new indirect wholly owned unit, Motherson Energy Systems Naarangwadi Limited, on February 24, 2026. The new entity will design, develop, own and operate power, energy and infrastructure projects based primarily on renewable sources for captive use within the Motherson Group, signaling a deeper push into in-house renewable energy infrastructure and potential cost and sustainability benefits for its operations.

Motherson Sets Up New Renewable Energy Subsidiary for Captive Power Needs

Samvardhana Motherson International Limited has expanded its energy portfolio via its wholly owned arm Motherson New Energy Limited, which has incorporated a new indirect wholly owned subsidiary, Motherson Energy Systems Bhend Limited. The new entity will focus on designing, developing, owning and operating renewable energy and infrastructure projects at Bhendwade in Maharashtra, primarily to supply captive power to the wider Motherson Group and support its long-term energy needs.

The incorporation of Motherson Energy Systems Bhend Limited marks a strategic move to secure in-house renewable power and enhance energy efficiency for the group’s operations. By internalising renewable generation capacity, the company aims to strengthen cost control, reduce dependence on external power sources and align its industrial footprint with the growing regulatory and ESG focus on clean energy within India’s manufacturing sector.

Samvardhana Motherson Confirms SEBI Demat Compliance for Q3 FY26

Samvardhana Motherson International Limited has filed a compliance certificate with Indian stock exchanges confirming adherence to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The registrar and share transfer agent, KFin Technologies, has certified that all dematerialisation requests during the period were processed within the stipulated timeframe, related security certificates were verified, cancelled and updated in the company’s records, and that the underlying shares are properly reflected as listed on the relevant exchanges, underscoring the company’s ongoing focus on regulatory compliance and robust shareholder record-keeping.

Motherson, Egtronics Finalise Joint Venture for Clean Mobility Vehicle Electronics

Samvardhana Motherson International Limited has completed the formation of its joint venture with South Korea’s Egtronics Co. Ltd. through its subsidiary Motherson Egtronics Electronics Solutions Limited, following the satisfaction of conditions precedent. The new entity, in which Motherson holds 51% and Egtronics 49%, will design, develop, manufacture and assemble clean mobility-related vehicle electronics, including DC-DC converters, auxiliary and traction inverters, on-board chargers and power distribution units for automotive and other industrial applications, underscoring the company’s strategic push into next-generation electric and electronic vehicle systems.

Samvardhana Motherson Delays Closing of Stake Purchase in Renewable Power SPV to Q4 FY26

Samvardhana Motherson International Limited has updated investors on its planned acquisition of a 28.15% stake in HR Dhauliganga Private Limited, a special purpose vehicle set up by Hinduja Renewables Energy Private Limited, which is tied to previously approved power delivery agreements for captive power generation and consumption under Indian electricity regulations. The company now expects the transaction to close in the fourth quarter of the 2025-26 financial year, instead of the earlier target of the third quarter, due to ongoing completion of conditions precedent, signalling a procedural delay but continued commitment to securing renewable captive power, with implications for its long-term energy costs and regulatory compliance.