Samvardhana Motherson International Limited (MOTHERSON) AI Stock Analysis

• Market Cap: ₹982.48B
• Dividend Yield: 0.61%
• Average Volume (3M): 723.22K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 1.43
• Revenue Growth: 9.43%
• EPS Growth: -13.28%
• Country: IN
• Employees: 93,971
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Parts
• EPS (TTM): 0.48
• Shares Outstanding: 10,554,077,000
• 10 Day Avg. Volume: 674,415
• 30 Day Avg. Volume: 723,217
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹107.85
• Price Target Upside: 15.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 70 Neutral
• Price Target: ₹109.00 ▲(17.09% Upside)

Samvardhana Motherson International Limited shows strong financial performance with robust revenue growth and profitability, although cash flow and liability management require attention. The technical analysis indicates weak momentum, and the valuation appears fair but with limited dividend yield.

Samvardhana Motherson International Limited Business Overview & Revenue Model

Company Description

Samvardhana Motherson International Limited (MOTHERSON) is a global manufacturer and supplier of automotive components, offering a diverse range of products and services to automotive OEMs and other industries. The company operates across various sectors, including automotive, technology, and industrial solutions, providing products such as wiring harnesses, mirrors, cockpits, bumpers, and more. MOTHERSON is known for its commitment to innovation, quality, and sustainability, serving a wide array of customers worldwide.

How the Company Makes Money

MOTHERSON makes money through the production and sale of automotive components and solutions to original equipment manufacturers (OEMs) in the automotive industry. The company's key revenue streams include the manufacturing and distribution of wiring harnesses, rearview mirrors, polymer products, lighting systems, and other automotive components. MOTHERSON also generates revenue from its technology and industrial solutions sectors, which provide specialized products and services to various industries. Significant partnerships with global automotive giants and a strategic focus on expanding its product portfolio and geographic presence contribute to its earnings. The company's ability to innovate and adapt to changing industry demands, along with its extensive manufacturing capabilities, underpin its robust revenue model.

Samvardhana Motherson International Limited Financial Statement Overview

Summary

The company demonstrated strong revenue growth and improved profit margins, indicating robust financial health. However, concerns over increasing liabilities and reduced operational cash flow suggest caution in future cash and leverage 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.11T	1.13T	977.79B	778.71B	634.93B	569.51B
Gross Profit	354.02B	514.89B	160.16B	311.64B	267.56B	232.86B
EBITDA	116.61B	116.37B	83.25B	63.88B	48.89B	45.22B
Net Income	41.24B	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	124.79B	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	-347.40B	557.19B	568.06B	374.75B	339.06B	315.01B
Stockholders Equity	347.40B	348.80B	261.55B	224.51B	205.88B	125.61B
Cash Flow
Free Cash Flow	-11.80B	17.25B	34.44B	24.22B	-454.00M	30.81B
Operating Cash Flow	8.14B	62.86B	75.69B	46.43B	24.63B	50.51B
Investing Cash Flow	-33.31B	-48.62B	-66.62B	-22.45B	-23.12B	-18.93B
Financing Cash Flow	78.44B	-25.51B	12.81B	-27.34B	-12.17B	-20.98B

Samvardhana Motherson International Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 93.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 93.09 is below the 20-day moving average (MA) of 97.07, below the 50-day MA of 100.27, and below the 200-day MA of 97.83, indicating a bearish trend. The MACD of -2.41 indicates Positive momentum. The RSI at 40.44 is Neutral, neither overbought nor oversold. The STOCH value of 27.41 is Neutral, 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
SUPREMEIND	73 Outperform	₹545.99B	61.36		0.79%	0.16%	-21.08%
UNOMINDA	72 Outperform	₹660.07B	63.77		0.20%	18.23%	13.98%
LGBBROSLTD	71 Outperform	₹40.16B	13.16		1.58%	11.99%	6.85%
MOTHERSON	70 Neutral	₹982.48B	23.39		0.61%	9.43%	-13.28%
ENDURANCE	66 Neutral	₹352.63B	41.06		0.38%	13.54%	19.14%
VARROC	57 Neutral	₹79.35B	58.31		0.20%	8.55%	-74.55%
Sector *	56 Neutral	HK$25.46B	5.05	-2.69%	5.69%	-0.43%	-53.15%

Samvardhana Motherson International Limited Corporate Events

Samvardhana Motherson Announces Bonus Share Issue

Samvardhana Motherson International Limited announced the successful passing of a resolution to issue bonus shares in a 1:2 ratio, meaning one fully paid-up equity share will be issued for every two existing shares. This move, approved through a postal ballot, is expected to enhance shareholder value and reflects the company’s commitment to rewarding its investors.

Samvardhana Motherson Announces Dividend Tax Deduction Details

Samvardhana Motherson International Limited announced a communication to its shareholders regarding the deduction of tax on dividends for the financial year ending March 31, 2025. The company has recommended a final dividend of Re. 0.35 per equity share, subject to shareholder approval, and will deduct tax at source as per applicable laws. This announcement is significant for shareholders as it outlines the tax implications and the necessary documentation required for compliance.