Samvardhana Motherson International
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Samvardhana Motherson International (MOTHERSON) is navigating a complex landscape marked by strategic diversification and disciplined capital allocation. Management's focus on expanding into high-growth sectors such as consumer electronics and aerospace, alongside a robust pipeline of greenfield projects, positions the company for sustained revenue growth. Despite facing near-term challenges from commodity inflation and regional market weaknesses, the company's operational agility and strong liquidity support its long-term outlook. Vista's forecast anticipates stable revenue growth and margins, underpinned by a favorable market environment for auto ancillaries and supportive government policies promoting electric vehicle adoption. However, potential headwinds from global automotive market fluctuations and execution risks in new technology segments warrant close monitoring. Over the next 12-24 months, key opportunities include leveraging its scale in emerging markets and capturing growth in non-automotive sectors, while watchpoints include commodity cost pressures and demand variability in certain automotive segments
Why We Like This Stock
- Management's focus on high-growth sectors like consumer electronics and aerospace enhances revenue potential
- A robust pipeline of greenfield projects and disciplined capital allocation support long-term growth
- Stable demand across various vehicle segments and improving pricing power in the auto ancillaries sector
Things To Watch Out For
- Commodity inflation poses challenges to profit margins in the near term
- Weak demand in certain automotive segments may impact overall revenue growth
- Execution risks associated with aggressive expansion into new technology areas like healthcare and robotics
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 98,692 | 113,663 | 126,104 | 132,389 | 149,356 |
| Profit Before Tax (Cr.) | 4,091 | 5,119 | 6,039 | 6,444 | 7,727 |
| PBT Margin | 4.1% | 4.5% | 4.8% | 4.9% | 5.2% |
| Net Profit (Cr.) | 2,746 | 3,785 | 4,229 | 4,536 | 5,148 |
| Earnings Per Share | 2.3 | 3.3 | 3.8 | 4.1 | 4.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Emkay Global | ▲ Buy | 190 | 10-Sep-2026 |
| CLSA | ▲ Outperform | 190 | 04-Sep-2026 |
| Goldman Sachs | ► Neutral | 158 | 02-Sep-2026 |
| JPMorgan | ▲ Buy | 170 | 13-Aug-2026 |
| Axis Securities | ▲ Buy | 180 | 07-Aug-2026 |
| ICICI Securities | ▲ Buy | 195 | 07-Aug-2026 |
| JMFinancials | ▲ Buy | 180 | 07-Aug-2026 |
| Jeffries | ▲ Buy | 190 | 07-Aug-2026 |
| Motilal Oswal | ▲ Buy | 178 | 07-Aug-2026 |
| Nomura | ▲ Buy | 171 | 07-Aug-2026 |
| Citigroup | ▼ Sell | 110 | 21-May-2026 |
| Elara Capital | ▼ Reduce | 118 | 21-May-2026 |
| Morgan Stanley | ▲ Overweight | 150 | 21-May-2026 |
Company Overview
Show Company Profile
Samvardhana Motherson International Limited, together with its subsidiaries, manufactures and sells components to automotive original equipment manufacturers in India, Germany, the United States, and internationally. It operates through Wiring Harness, Modules and Polymer Products, Vision Systems, Integrated Assemblies, and Emerging Businesses segments. The company offers wiring harness components, power modules, electrical cabinets and power packs, and electrical distribution systems; and exterior and interior rearview mirrors, and camera monitoring systems. It also provides plastic parts and system modules for vehicle interiors and exteriors, under-bonnet products, upholstery, sunroofs, and fuel tanks; cockpit modules, centre consoles, headliners, door panels, and exterior front-end modules, as well as value-added module assemblies; and full module service and system integration, and logistic services. In addition, the company engages in emerging businesses, including elastomers and extruded rubber components, lighting and electronics, precision metals and modules, technology and industrial, aerospace, and health and medical solutions; provision of HVAC and compressors, body control modules, struts, shock absorbers, and backward integration products; and other support services, such as engineering, consultation, project management, and turnkey solutions, as well as operation of an industrial park; and OEM-certified products, such as vehicle lighting and accessories, plastic components, safety systems, wiring harnesses, and body electronics. Further, it offers enterprise resource planning system; waste recycling; and product engineering, in-house application tooling, and testing and validation services. 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 founded in 1975 and is headquartered in Noida, India.