Samvardhana Motherson Stock Price Up By More Than 2% Today

Mumbai, June 5, 2025: Shares of Samvardhana Motherson International Ltd surged 2.06% to close at Rs 155.85 during Thursday’s trading session, signalling strong investor confidence amid an overall bullish market mood.

The stock, included in both the NIFTY NEXT 50 and NIFTY 100 indices, saw an intraday high of Rs 156.25 and a low of Rs 153.30, with a total trading volume exceeding 52.6 lakh shares.

Samvardhana Motherson International Ltd opened the trading session at ₹154.00 on 5 June 2025, slightly above its previous close of ₹152.71. The stock witnessed a high of ₹156.90 and a low of ₹153.30, with a total traded volume of 87.31 lakh shares, amounting to a turnover of ₹13,641.91 lakh. The Volume Weighted Average Price (VWAP) stood at ₹155.39. With a market capitalisation of ₹1,09,928 crore and a beta of 1.78, the stock exhibits higher-than-average volatility. It currently trades within an upper circuit limit of ₹167.98 and a lower circuit limit of ₹137.43.

The scrip has touched a 52-week high of ₹216.99 and a low of ₹107.25, while the all-time high remains ₹216.99 and the all-time low ₹0.13. The 20-day average volume is approximately 2.13 crore shares with an average delivery percentage of 39.05%.

The company’s book value per share stands at ₹46.38, and it offers a dividend yield of 0.54%. On a trailing twelve-month (TTM) basis, the earnings per share (EPS) is ₹5.40, marking a 34.72% year-on-year growth, resulting in a price-to-earnings (PE) ratio of 28.93, considered low in comparison to the sector PE of 69.05. The price-to-book (P/B) ratio is 3.37, indicating an average valuation on this metric.

Robust Financial Performance Drives Investor Optimism

The upward movement in the share price coincides with the company’s impressive financial results, showcasing sustained growth in both revenue and profits over recent quarters.

Annual Financial Growth (FY21 to FY25):

• Revenue increased from Rs 57,369.90 crore in FY21 to Rs 113,662.57 crore in FY25
• Net Profit rose from Rs 1,157.80 crore in FY21 to Rs 3,618.20 crore in FY25
• EPS improved from 3.29 to 5.50
• Return on Equity (ROE) enhanced from 8.27% to 10.90%
• Debt-to-Equity Ratio reduced from 0.85 to 0.42

Stable Cash Flow and Strong Balance Sheet

As of March 2025, the company reported:

• Operating Cash Flow: Rs 6,286 crore
• Total Assets: Rs 92,847 crore
• Reserves and Surplus: Rs 34,176 crore
• Share Capital: Rs 703 crore

Motherson Accelerates Ahead with Strategic Growth, Robust Financials, and Global Expansion Plans

Samvardhana Motherson International reported a 22.75% year-on-year decline in consolidated profit after tax (PAT), which fell to ₹1,115.38 crore in Q4 FY25, down from ₹1,444 crore in the same period last year. Despite this dip in profitability, the company posted a healthy 8.34% increase in revenue, reaching ₹29,317 crore, compared with ₹27,058 crore in Q4 FY24.

On a sequential basis, the quarter showed improvement. Q4 PAT rose by around 13.3% from ₹984.35 crore in Q3, while revenue grew approximately 6% from ₹27,666 crore.

However, margins were under pressure. EBITDA dipped 1.6% YoY to ₹2,643 crore, and the EBITDA margin narrowed by 70 basis points, from 9.7% to 9%, reflecting cost escalations and inflationary challenges.

Motherson continues to outshine the broader industry, outperforming it by nearly 15%, due to consistent product-level content growth and a robust M&A approach that has supported its entry into new markets and segments. The company’s financial strength is evident in its consolidated ROCE of 17.2% and a comfortable net debt-to-EBITDA ratio of 0.9x. With capital expenditure of ₹4,433 crore in FY25, investments were strategically aligned with market dynamics while prioritising long-term growth.

Currently, 14 greenfield projects are in progress, of which nine are expected to go live in FY26, reflecting the company’s forward-looking development strategy. Its total booked business value has surpassed USD 88 billion, underpinned by increasing traction in non-automotive verticals. Moreover, by ensuring compliance with the US-Mexico-Canada Agreement and proactively engaging customers to manage tariff-related costs, Motherson has reinforced its global competitiveness and profitability outlook.

Corporate Actions & Value Enhancements

• Bonus Share & Dividend: The board approved a 1:2 bonus issue, along with a final dividend of ₹0.35 per share, subject to shareholder approval.
• Fundraising Plan: An in-principle decision was taken to issue up to ₹8,500 crore in unsecured, redeemable, non-convertible debentures (NCDs).

Final Words

The consistent earnings growth, stronger financial footing, and improved profitability metrics position Samvardhana Motherson International favourably in the market. This solid financial foundation has been a key factor contributing to the recent surge in the company’s stock price.

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