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Samvardhana Motherson International Ltd. Fundamental Analysis English

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Samvardhana Motherson International Ltd Fundamental Analysis

Samvardhana Motherson International Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹1,27,498 crore, PE ratio of 44.5, debt-to-equity ratio of 0.76, and return on equity of 11.8%. These figures reflect the company’s financial health and current market valuation.

Samvardhana Motherson International Ltd Overview

Samvardhana Motherson International Ltd is a leading global automotive supplier headquartered in India. It specializes in manufacturing wiring harnesses, mirrors, and other components for vehicles, with a broad international presence and a focus on innovation and quality.

The company has a market capitalization of ₹1,27,498 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 9.93% below its 52-week high and 117% above its 52-week low.

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Samvardhana Motherson International Financial Results

Samvardhana Motherson International Ltd’s financial results for FY 24 show notable growth in sales and profitability. The company reported a substantial increase in revenue and net profit, reflecting effective operational improvements and strategic financial management.

  1. Revenue Trend: Sales increased from ₹63,536 million in FY 22 to ₹98,692 million in FY 24, highlighting a consistent growth trajectory.
  1. Equity and Liabilities: Equity and liabilities saw EBITDA rise from ₹4,957 crore in FY22 to ₹9,474 crore in FY24, with interest increasing from ₹542.6 crore to ₹1,811 crore and depreciation from ₹2,958 crore to ₹3,811 crore..
  1. Profitability: Operating profit grew to ₹9,287 million in FY 24, with an operating profit margin of 9%, indicating enhanced profitability.
  1. Earnings Per Share (EPS): EPS improved from ₹2.50 in FY 22 to ₹4.01 in FY 24, reflecting better earnings distribution to shareholders.
  1. Return on Net Worth (RoNW): RoNW improved as net profit grew from ₹1,182 crore in FY22 to ₹3,020 crore in FY24, reflecting efficient equity utilization and enhanced shareholder value, supported by rising EPS.
  1. Financial Position: The company’s financial position appears robust with rising sales and net profit, suggesting strong operational and financial health.

Samvardhana Motherson International Financial Analysis

FY 24FY 23FY 22
Sales98,69278,70163,536
Expenses89,40572,49359,075
Operating Profit9,2876,2084,461
OPM %987
Other Income-62.29157.5447.6
EBITDA9,4746,4654,957
INTEREST1,811780.9542.6
Depreciation3,8113,1362,958
Profit Before Tax3,6032,4491,408
Tax %22.7830.0343.1
Net Profit3,0201,6701,182
EPS4.012.212.5
Dividend Payout %029.4126

*All values in ₹ Crores

Samvardhana Motherson International Company Metrics

Samvardhana Motherson International Ltd boasts a substantial market cap of ₹1,27,498 crore and a stock price of ₹188. The company shows impressive performance metrics with significant returns and solid financial ratios, reflecting its strong market position and operational efficiency.

  1. Market Cap: The market capitalization stands at ₹1,27,498 crore, reflecting the company’s substantial value and significant presence in the automotive sector.
  1. Book Value: The book value per share is ₹38.6, representing the company’s net asset value attributable to each share.
  1. Face Value: The face value of the stock is ₹1.00, which is the nominal value assigned to each share.
  1. Turnover: Asset turnover is 1.36, indicating efficient use of assets to generate revenue.
  1. PE Ratio: The price-to-earnings ratio is 44.5, suggesting a premium valuation relative to earnings.
  1. Debt: Total debt amounts to ₹19,922 crore, indicating leverage used for financing operations and growth.
  1. ROE: Return on equity is 11.8%, reflecting the company’s efficiency in generating profits from shareholders’ equity.
  1. EBITDA Margin: The EBITDA margin is 14.5, showing a strong proportion of earnings before interest, taxes, depreciation, and amortization relative to sales.
  1. Dividend Yield: The dividend yield is 0.43%, indicating the return on investment from dividends relative to the stock price.

Samvardhana Motherson International Stock Performance 

The table shows impressive returns with 95% over one year, 16% over three years, and 28% over five years. These figures highlight strong long-term growth and substantial returns on investment, reflecting the company’s robust performance and market value increase.

PeriodReturn on Investment (%)
5 Years28%
3 Years16%
1 Year95%

Example:

Suppose A invested ₹1,00,000 in Samvardhana Motherson International Ltd a year ago. With a 95% return, A’s investment would now be worth ₹1,95,000, resulting in a ₹95,000 profit.

Similarly, if A invested ₹1,00,000 three years ago, the investment would be worth ₹1,48,000 with a 16% return over this period, yielding a ₹48,000 profit.

For a five-year investment of ₹1,00,000, A would see the investment grow to ₹1,28,000, reflecting a 28% return and a profit of ₹28,000.

Samvardhana Motherson International Peer Comparison

Samvardhana Motherson International Ltd stands out in the industry with a market cap of Rs. 125,037.81 crore, showing strong growth potential compared to peers like Bosch and Exide Industries. Competitors exhibit varied performance, with Samvardhana Motherson International Ltd demonstrating a robust 1-year return of 91.26%.

Sl No.NameCMP Rs.Mar Cap Rs.Cr.PEG3mth return %1Yr return %
1Samvardh. Mothe.184.57125037.813.245.0591.26
2Bosch30993.1591322.7816.52-0.1671.24
3Uno Minda110763578.142.952.0589.52
4Exide Inds.486.241335.3925.552.7583.68
5Sona BLW Precis.652.3538272.261.917.8218.67
6Endurance Tech.2482.534947.69.7722.5550.46
7Motherson Wiring69.0130505.7-0.7116.18

Samvardhana Motherson International Shareholding Pattern

The shareholding pattern of Samvardhana Motherson International Ltd reveals a stable distribution across different categories. Promoters hold a significant 60.36% as of June 2024, while FIIs, DIIs, and retail investors have varying stakes, reflecting a balanced ownership structure with consistent investor engagement.

Jun 2024Mar 2024Dec 2023Sept 2023
Promoters60.3660.3664.7864.77
FII12.8812.4410.7811.41
DII18.1618.2715.3314.98
Retail & others8.628.929.18.84

*All values in %

Samvardhana Motherson International History

Incorporated in 1986 as Motherson Auto Pvt. Ltd., the company evolved from manufacturing wiring harnesses to a public entity by 1987. It initially acquired Noida Steel Fabricators and diversified into plastic and steel components.

By the mid-1990s, Samvardhana Motherson expanded globally through joint ventures with companies like Kromberg & Schubert and Britax. The company significantly increased its manufacturing capacity and obtained ISO certifications, enhancing its market position.

In recent years, the company continued to grow through strategic acquisitions, including Bombardier’s electrical components and interior modules from Reydel Automotive. In 2022, it rebranded to Samvardhana Motherson International Ltd., reflecting its global expansion and diversification.

How To Invest In Samvardhana Motherson International Ltd Share?

Investing in Samvardhana Motherson International Ltd shares is a straightforward process:

  • Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
  • Complete KYC: Submit necessary documents for KYC verification.
  • Fund Your Account: Deposit funds into your trading account.
  • Buy Shares: Search for Samvardhana Motherson International Ltd shares and place your buy order.
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Samvardhana Motherson International Limited Fundamental Analysis – FAQs.

1. What Is The Fundamental Analysis Of Samvardhana Motherson International?

Samvardhana Motherson International Ltd’s fundamental analysis shows a market capitalization of ₹1,27,498 crore, a PE ratio of 44.5, a debt-to-equity ratio of 0.76, and a return on equity of 11.8%, indicating a strong financial health and market valuation.

2. What is the Market Cap of Samvardhana Motherson International Ltd?

The market capitalization of Samvardhana Motherson International is ₹1,27,498 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.

3. What Is Samvardhana Motherson International Limited?

Samvardhana Motherson International Limited is a leading global automotive supplier specializing in manufacturing wiring harnesses, mirrors and other components. It operates through extensive joint ventures and acquisitions, serving major automobile manufacturers worldwide with advanced technological solutions.

4. Who Is Samvardhana Motherson International Owner?

Samvardhana Motherson International Limited is primarily owned by the Sehgal family, who are major shareholders through their various entities. The company’s ownership includes significant stakes held by institutional investors and strategic partners, reflecting a diverse ownership structure.

5. Who Are The Main Shareholders Of Samvardhana Motherson International?

The main shareholders of Samvardhana Motherson International Limited include the Sehgal family, which holds a significant portion of the shares, along with institutional investors such as foreign institutional investors (FIIs) and domestic institutional investors (DIIs), and retail investors.

6. What Type Of Industry Is Samvardhana Motherson International?

Samvardhana Motherson International operates in the automotive industry, focusing on manufacturing and supplying automotive components such as wiring harnesses, mirrors, and other related products. It serves major global automobile manufacturers, providing integrated solutions for vehicle systems.

7. How To Invest In Samvardhana Motherson International Ltd Share?

To invest in Samvardhana Motherson International Ltd shares, open a demat and trading account with a registered stockbroker. Once your account is active, you can purchase shares through a stock exchange, such as NSE or BSE, using your broker’s platform.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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