Samvardhana Motherson International Limited

Consumer Cyclical — Auto Parts · NSE

₹160.00−₹0.66 (−0.41%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Samvardhana Motherson International Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

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.

IndustryAuto Parts

SectorConsumer Cyclical

Annual revenue₹1.25 L Cr

How does it make money?

Turns over ₹1.25 L Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 11.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE23.0%

What is the outlook?

21 analysts covering the stock expect revenue to grow about 1079.6% and earnings to grow about 30.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+1079.6%

Est. earnings growth+30.8%

Analysts21

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +61% while net margin moved +61% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+61%

Margin effect+61%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 9.4% is weak

Quality vs. Valuation

Company Quality

64/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

56/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

38.6x

3Y Median

41.1x

40 monthly readings · mean 43.1x · range 25.3x–88.9x

Sector Median

45.7x

median of 4 sector peers

🟡Currently trading close to its 3y median of 41.1x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 16% below the peer median of 45.7x.

vs. its own history

Fair

41.1x median over 40 months · -6%

vs. sector peers

Fair

45.7x median of 4 peers · -16%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

14.4x

PEG

1.04

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 7.9% to 10.1% over 3 years.
Cash generation is improving
Free cash flow is up 116% over 3 years.
Return on capital is rising
ROCE has improved from 8.1% to 11.5%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 134% against revenue up 61% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 39% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.9% to 10.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹5,230 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 134% against revenue up 61%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.1% CAGR
Latest reported year was 16.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹5,230 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 11.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹1.70 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

38.6x

Fair

Fairly valued against the generic band

P/B Ratio

4.11x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.15

Profitable

Profitable on a per-share basis

ROE

9.4%

Moderate

Moderate capital efficiency

ROCE

11.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.44x

Low

Conservative leverage

Revenue Growth (YoY)

16.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

104.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.31%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹5,230 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

23.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.0%

Weak

Thin margins leave little room for error

Net Margin

3.4%

Average

Average bottom-line conversion

Current Ratio

1.06

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

1.07

Market-like

Moves roughly in line with the market

52W Range Position

82%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

160.0 / 163.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹77,871 Cr	₹97,779 Cr	₹1.13 L Cr	₹1.25 L Cr	+17.1%
EBITDA	₹6,146 Cr	₹9,443 Cr	₹11,076 Cr	₹12,626 Cr	+27.1%
EBITDA Margin	7.9%	9.7%	9.8%	10.1%	—
PAT (Net Profit)	₹1,496 Cr	₹2,716 Cr	₹3,803 Cr	₹3,860 Cr	+37.2%
EPS	₹1.47	₹2.67	₹3.67	₹3.66	+35.4%
ROE	6.7%	10.4%	10.9%	9.4%	—
ROCE	8.1%	12.0%	13.5%	11.5%	—
Total Debt	₹13,792 Cr	₹19,922 Cr	₹17,222 Cr	₹19,170 Cr	+11.6%
Free Cash Flow	₹2,422 Cr	₹3,444 Cr	₹1,725 Cr	₹5,230 Cr	+29.3%

🟢 Revenue has grown at 17.1% a year over 3 years.

🟢 EBITDA has grown at 27.1% a year over 3 years.

🟢 EBITDA Margin has risen from 7.9% to 10.1% over 3 years (+2.2 pts).

🟢 PAT (Net Profit) has grown at 37.2% a year over 3 years.

🟢 EPS has grown at 35.4% a year over 3 years.

🟢 ROE has risen from 6.7% to 9.4% over 3 years (+2.8 pts).

🟢 ROCE has risen from 8.1% to 11.5% over 3 years (+3.3 pts).

🔴 Total Debt has grown at 11.6% a year over 3 years.

🟢 Free Cash Flow has grown at 29.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.10 L Cr

Total Liabilities

₹66,836 Cr

Cash & Equivalents

₹7,428 Cr

Operating Cash Flow

₹11,284 Cr

Capex

-₹6,054 Cr

Shareholding (proxy)

Institutional Holding

25.3%

Insider Holding

59.0%

Corporate Actions

Next Earnings

12 Nov 2026

Dividend Rate

₹0.5

Ex-Dividend Date

14 Jul 2026

Analyst Consensus

Recommendations

18 Buy · 2 Hold · 2 Sell

Target Price (Mean)

₹174.95

+9.3% vs CMP

Target Range

₹115 – ₹210

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

3 mixed3 general

Motherson Share Price Rise Amid Auto Ancillaries Context

Univest, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Samvardhana Motherson International Ltd is Rated Buy

MarketsMojo, 17 Oct

Is Now The Time To Look At Buying Samvardhana Motherson International Limited (NSE:MOTHERSON)?

Simply Wall Street, 06 Jul

Samvardhana Motherson shares rally over 7% after Q1 earnings; Motilal Oswal, Nomura weigh in

The Economic Times, 07 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Is Samvardhana Motherson International the Best Stock in Its Sector? A Look at the Numbers

Univest, 16 Oct

Samvardhana Motherson rallies 6%, hits new high post Q1 results

Business Standard, 07 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Risk

MiddlingBusiness Quality · Valuation

WeakProfitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑