Samvardhana Motherson International Ltd.
NSE: MOTHERSONSamvardhana Motherson International Ltd.: A 30-second snapshot
Samvardhana Motherson International (₹126.32) is a global auto-ancillary manufacturer that has returned 38.2% over the past 12 months, trading above its 50-DMA (₹120.32) and 200-DMA (₹112.24). Revenue has grown at a 5-year CAGR of 14.5% and earnings at 16.4%, though net profit margin remains thin at 2.83% and debt-to-equity of 49.9 is notably high for the sector. Quality score of 43 ranks near the bottom of its 6-member Auto peer group.
P/E
39.0
Forward P/E
25.2
ROE
—
Debt / Equity
49.94
Profit Margin
+2.8%
Div. Yield
+0.5%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
55/100
News
8 headlines · 3 positive · 0 negative
Samvardhana Motherson Completes 51% Stake Acquisition in Nissin India - scanx.trade
scanx.trade
Samvardhana Motherson Buys Stake in South Africa's Vacuform for Full Control - Whalesbook
Whalesbook
Samvardhana Motherson International Issues Corporate Guarantee for Subsidiary's EUR 720 Million Revolving Credit Facility - scanx.trade
scanx.trade
Samvardhana Motherson International Grants 23,211,370 Employee Stock Options Under ESOP Scheme 2025 - scanx.trade
scanx.trade
Samvardhana Motherson International Incorporates Digital Technology Subsidiary MDTL - scanx.trade
scanx.trade
Recent context
- ·Samvardhana Motherson completed a 51% stake acquisition in Nissin India (May 2026) and acquired full control of Vacuform South Africa (April 2026), continuing a multi-year strategy of bolt-on global acquisitions.
- ·The company issued a corporate guarantee for a subsidiary EUR 720 million revolving credit facility in May 2026 and granted 23.2 million employee stock options under ESOP Scheme 2025 — both are balance-sheet-related disclosures filed in the same week.
- ·A new digital technology subsidiary (MDTL) was incorporated in May 2026, signalling an intent to build internal digital and technology capabilities alongside the traditional manufacturing business.
Strengths
- +5-year revenue CAGR of 14.5% and earnings CAGR of 16.4% indicate sustained top-line and bottom-line expansion over the medium term.
- +Price is 38.2% higher than 12 months ago and sits above both the 50-DMA (₹120.32) and 200-DMA (₹112.24), with RSI at 53.66 in neutral territory; 52-week drawdown is contained at -6.93%.
- +Forward PE of 25.2x versus trailing PE of 39.0x implies the market is pricing in a meaningful step-up in earnings; if realised, this would represent significant multiple compression.
- +Active inorganic expansion — 51% stake in Nissin India completed May 2026 and full control of Vacuform South Africa acquired April 2026 — reflects an ongoing global footprint build-out.
Weaknesses
- −Debt-to-equity of 49.9 is exceptionally high for an auto-ancillary manufacturer; the trend is rising, and a subsidiary EUR 720 million revolving credit facility (for which the parent issued a corporate guarantee in May 2026) adds contingent liability exposure.
- −ROE has not cleared 15% in any year of available data and is not currently reported; combined with a consistency score of 50 and an FCF-positive record of only 3 of available years, capital efficiency remains a persistent concern.
- −Net profit margin of 2.83% is thin and leaves limited cushion against input cost inflation, FX headwinds (given global operations), or revenue softness in key automotive end-markets.
- −Quality score of 43 ranks 5th of 6 in the Auto peer group; trailing PE of 39.0x is the highest among comparable peers (range: 20.9x–36.0x), representing a premium valuation with below-median quality metrics.
Open questions
- ?Does the 14.5% revenue CAGR reflect organic growth in core wiring harness and mirror businesses, or is it primarily driven by the acquisition pipeline — and how do the two components differ in margin profile?
- ?At a debt-to-equity of 49.9 with a rising debt trend, what is the interest coverage ratio and how sensitive is net profit (currently at 2.83% margin) to a 100 bps increase in borrowing costs?
- ?The forward PE of 25.2x implies a substantial earnings uplift from current levels — what specific operational or integration milestones would need to be achieved for trailing earnings to close that gap?
- ?How does Samvardhana Motherson's exposure to European OEM production volumes (given the EUR 720 million credit facility and multiple European subsidiaries) translate to earnings risk if EU auto demand contracts?
Peer comparison: Auto
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| MOTHERSON | Samvardhana Motherson International Ltd.You're viewing | 39.0 | — | 43 |
| Industry avg | across 5 peers | 28.8 | +20.4% | 49 |
| EICHERMOT | Eicher Motors Ltd. | 36.0 | — | 60 |
| BAJAJ-AUTO | Bajaj Auto Ltd. | 27.2 | +28.1% | 55 |
| M&M | Mahindra & Mahindra Ltd. | 20.9 | +18.8% | 52 |
| TMPV | Tata Motors Passenger Vehicles Ltd. | 31.8 | — | 46 |
| MARUTI | Maruti Suzuki India Ltd. | 28.0 | +14.4% | 31 |
Technical state
Current price
₹126.32
SMA 50
₹120.32
SMA 200
₹112.24
RSI (14)
53.7 (neutral)
From 52w high
-6.9%
1Y return
+38.2%
3M return
+1.9%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 49.9 is exceptionally elevated for a non-financial auto-ancillary manufacturer; the debt trend is classified as rising, and recent news includes a corporate guarantee issued for a subsidiary EUR 720 million revolving credit facility (May 2026), adding contingent liability exposure.
- highROE is not reported and 0 of available years cleared the 15% threshold; net profit margin of 2.83% is thin, leaving minimal buffer against revenue or cost shocks. FCF was positive in only 3 of available years, and the consistency score stands at 50 of 100.
- mediumQuality score of 43 ranks MOTHERSON 5th out of 6 Auto sector peers. Trailing PE of 39.0x on a 2.83% margin is among the highest in the peer group; sector PE range spans 20.9x (M&M) to 36.0x (Eicher), making MOTHERSON the most expensive on this metric.
- lowNews sample is 8 items — above the minimum threshold but thin. Recent headlines are dominated by acquisition and corporate-action disclosures; no independent operational performance commentary available in the sample.
Cross-section contradictions
- The stock is up 38.2% over 12 months and trades above both the 50-DMA (₹120.32) and 200-DMA (₹112.24), yet quality score of 43 ranks 5th of 6 peers and ROE has never cleared 15% in available data — price momentum and fundamental quality are diverging.
- Forward PE of 25.2x implies a material earnings recovery from the current 39.0x trailing PE; the path to that compression is not yet visible in reported margins of 2.83% or the rising debt trend.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days