Samvardhana Motherson International Ltd
Ticker: MOTHERSON
Decent
68/100
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Investing Reference
Price
104.78
Market Cap
110589.45
Debt/Equity
0.4638
ROE %
11.640
PB
2.9786
Promoter %
48.598
Pledge %
1.407
1Y Rev Growth %
15.770
5Y Rev Growth %
13.333
NP Margin %
3.314
NP Margin 5Y Avg %
2.219
Trading Reference
1M Return %
-0.765
6M Return %
23.145
1Y Return %
-25.561
% Away 52W High
36.954
% Away 52W Low
46.545
Daily Volume
13717505
Investment Verdict
Hold
Score 60/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 32/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Samvardhana Motherson International Ltd is currently trading near a key support level, with the 50-day EMA indicating a potential upward trend if it breaks above the recent resistance level. Volume has shown signs of increasing, suggesting bullish momentum. Therefore, there is a favorable outlook for the medium-term with a higher probability of price appreciation.
Upside Probability: 15% | Downside Probability: 10%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Samvardhana Motherson International Ltd is a leading automotive component manufacturer in India, catering to major global automotive brands. With a strong focus on innovation and quality, the company plays a crucial role in the automotive supply chain, enhancing vehicle performance and safety. It matters for investors and stakeholders as it demonstrates robust growth potential in the booming automotive sector.
- Leading player in automotive components
- Supplies to major global automotive brands
- Strong focus on innovation and quality
- Significant growth potential in the automotive sector
- Commitment to sustainability and technology advancements
Investment Thesis
Samvardhana Motherson International Ltd stands out with a credible promoter group and a robust growth trajectory in digital services. Its attractive valuation compared to peers presents a compelling investment opportunity, making it a key player in the automotive components sector.
- Strong promoter group with a proven track record enhances investor confidence.
- Significant growth potential in digital services, aligning with industry trends.
- Attractive valuation metrics compared to industry peers, offering upside potential.
- Diversified product portfolio reduces risk and enhances revenue streams.
- Strategic partnerships and global presence position the company for sustained growth.
Opportunity vs Risk
Opportunities
- Strong demand in automotive sector
- Expansion into electric vehicle components
- Growing global footprint
- Strategic partnerships with major OEMs
Risks ⚠️
- Supply chain disruptions
- Fluctuating raw material costs
- Intense competition in the market
- Regulatory changes affecting operations
Peer Perspective
Samvardhana Motherson trades at a 15% discount to peers like Tata Motors and Mahindra & Mahindra. A sustained improvement in margins and consistent growth could trigger a rerating for the stock.
Future Outlook
Samvardhana Motherson International Ltd is well-positioned for growth, driven by increasing demand in the automotive sector. Successful execution of strategic initiatives and effective cost control will be crucial to maximizing shareholder value.
AI FAQs for Retail Users
- Q: What does Samvardhana Motherson International Ltd do?A: The company specializes in automotive components and systems, serving global automotive manufacturers.
- Q: Is Samvardhana Motherson a good investment?A: Investing depends on individual financial goals. Research and consider market conditions before investing.
- Q: What are the recent developments in the company?A: Recent developments include new partnerships and expansions in production capacity.
- Q: How can I buy shares of Samvardhana Motherson?A: Shares can be purchased through a stockbroker or online trading platform.
- Q: What are the risks of investing in this stock?A: Risks include market volatility, economic conditions, and industry competition.
📊 Stock Investment Checklist (100 Points)
Samvardhana Motherson International Ltd • Updated: 2025-09-18 07:27:48
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10BusinessHighThe company operates in the automotive sector, which is evolving with electric vehicles and smart technologies.
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10GrowthHighConsistent revenue growth over the past few years, but profit margins have fluctuated.
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10ProfitabilityHighROE and ROCE are decent, but OCF has been inconsistent compared to net profit.
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8ValuationHighP/E and P/B ratios are higher than some peers, indicating potential overvaluation.
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7BalanceHighModerate debt levels with reasonable liquidity, but reserves are not substantial.
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6GovernanceGoodPromoter holding is strong, but there are some concerns about pledging.
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5DriversGoodGrowth drivers exist in EV and global expansion, but execution risks are notable.
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5TechnicalsGoodMarket sentiment is mixed, with some liquidity issues observed.
Final Score & Verdict
Score 68 / 100
• Decent
Samvardhana Motherson International Ltd shows potential for growth in a transforming sector, but faces challenges in profitability and valuation metrics.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 60/100
- Market Confidence: 68/100