COMPANY PROFILE:
Samvardhana Motherson International Limited (SAMIL) is a leading global automotive components manufacturer, providing wiring harnesses, rearview mirrors, bumpers, dashboards, and more to major OEMs like Maruti Suzuki, Mercedes-Benz, and Volkswagen. With a strong global presence, SAMIL has expanded through strategic acquisitions, including PKC Group and Reydel Automotive. In July 2024, CRISIL upgraded SAMIL’s long-term rating to ‘CRISIL AAA/Stable’ from ‘CRISIL AA+/Positive’ and reaffirmed its short-term rating as ‘CRISIL A1+’, citing its strong market position and growing scale. Recently, SAMIL announced a $715 million QIP to fund expansion and debt repayment.
AREAS OF BUSINESS
- Wiring Harness & Electrical Components – Manufacturing wiring harnesses, connectors, and electrical distribution systems for vehicles.
- Interiors & Plastics – Producing dashboards, door panels, center consoles, and other plastic components for automobiles.
- Vision Systems – Manufacturing rearview mirrors, camera-based vision systems, and smart mirrors.
- Offering bumpers, lighting systems, and exterior body parts.
- Metal Processing & Engineering – Providing precision machining, metal forming, and tooling for various automotive applications.
- IT Services & Digital Solutions – Supporting automotive digitalization, software development, and IT infrastructure.
- Aerospace & Health Tech – Expanding into aerospace components and healthcare-related engineering solutions.
| Market cap | ₹ 87,919 Cr |
| P/E | 21.32 |
| Earnings per share | 5.86 |
| Industry P/E | 29.47 |
| Book Value | 46.38 |
| Price to Book | 2.69 |
MANAGEMENT OVERVIEW
- Vivek Chaand Sehgal (Chairman) – Co-founder and visionary leader driving SAMIL’s global expansion and strategic growth.
- Laksh Vaaman Sehgal (Vice Chairman) – Focuses on business innovation, digital transformation, and future-ready strategies.
- G. N. Gauba (Chief Financial Officer – CFO) – Manages financial planning, risk management, and capital allocation.
- Pankaj Mital (Chief Operating Officer – COO) – Oversees global operations, ensuring efficiency and supply chain optimization.
- K. Sugahara (Director) – Represents Sumitomo Wiring Systems, strengthening global partnerships.
- Sudhir Kumar Arya (Company Secretary & Compliance Officer) – Ensures regulatory compliance and corporate governance.
Awards and achievements
· 2024 – CRISIL Rating Upgrade to ‘CRISIL AAA/Stable’
· 2023 – Recognized among Forbes “Global 2000” Companies
· 2022 – Best Supplier Award from Daimler and Volkswagen
· 2021 – Industry 4.0 Leadership Award for Digital Transformation
· 2020 – Frost & Sullivan Award for Excellence in Automotive Components
Economy outlook
Global growth remains stable at 3.2%-3.3% for 2024-2025, with inflation and interest rates declining, including a 0.5% US Fed rate cut. India’s economy is projected to grow at 7%-7.2% in FY 2025, with Q1 GDP growth at 6.7%, driven by 7.4% private consumption growth and 7.5% investment growth, despite reduced government capital expenditure. Inflation has eased to 3.65%, while the fiscal deficit significantly declined from ₹6.1 lakh crore to ₹2.8 lakh crore. Financial markets are thriving, with record-high stock markets, doubled mutual fund SIP contributions, and 15% bank credit growth.
Outlook of Automobile Components in India
The automobile components industry in India continues to thrive; growing to ₹3.32 lakh crore ($39.6 billion) in H1 FY 2024-25 with an 11.3% YoY increase. EV adoption, government policies such as the PLI scheme, and increasing exports are expected to push the sector $200 billion in value by 2030 at a CAGR of 16%. Exports are projected to increase five times to $100 billion, while domestic OEM sales and the aftermarket segment will be $89 billion and $16 billion, respectively. Fueled by innovation and expansion of the supply chain India is going to be the key global auto component market
Motherson role in the industry growth
Samvardhana Motherson International Limited (SAMIL) is a key driver of India’s automobile components industry growth, contributing through global expansion, innovation, and localization. With a presence in 41+ countries, it strengthens India’s role in global supply chains. Motherson is investing in EV components, ADAS, and lightweight materials, aligning with the shift toward electric mobility and smart vehicles. By supporting the Make in India initiative, enhancing manufacturing capabilities, and focusing on sustainability, Motherson plays a crucial role in making India a global auto component hub, boosting exports and technological advancements.
Outlook and Projections of Motherson Company
Samvardhana Motherson International Limited (SAMIL) is poised for significant growth in the coming years, driven by strategic acquisitions, technological advancements, and a robust global presence.
Financial Projections:
- Revenue Growth: Analysts project SAMIL’s revenue to reach approximately ₹1,171.68 billion for the full year 2025, with an expected increase to ₹1,266.37 billion in 2026.
- Earnings Per Share (EPS): The forecasted EPS is ₹5.66 for 2025, with a projected rise to ₹8.96 by March 2027.
Strategic Initiatives:
- Acquisitions: SAMIL has agreed to acquire a 100% equity stake in SAS Auto system Technik GmbH from Faurecia for an enterprise value of €540 million. This move aims to enhance SAMIL’s capabilities in cockpit module assemblies and expand its footprint across 12 countries.
- Technological Advancements: The company is investing in electric vehicle (EV) components, advanced driver-assistance systems (ADAS), and lightweight materials, aligning with the automotive industry’s shift towards electrification and smart technologies.
Market Position and Challenges:
- Global Presence: Operating in over 41 countries, SAMIL continues to strengthen India’s position in global automotive supply chains.
- Market Conditions: Despite a 62% year-over-year increase in net profit and over 35% growth in revenue from operations in Q3 FY2025, SAMIL faces challenges due to weak global automotive component demand.
Financial Analysis
Income Statement
Quarterly Snippet
| Particulars(in Cr) | DEC 24 | SEP 24 | JUN 24 | MAR 24 |
| Total Income | 27777 | 28071 | 28938 | 27141 |
| Expenses | 26092 | 26466 | 27157 | 25211 |
| EBIT | 1684 | 1604 | 1781 | 1930 |
| Net Profit (PAT) | 881 | 764 | 989 | 1367 |
The Total income saw a decline in the latest quarter which is seen to be a part of a QoQ decline from MAR24 which shows that the business has declined, though EBIT was better than previous quarter.
Annual Snippet
| Particulars | Mar 24 (₹ in Cr) | Mar23 (₹ in Cr) |
| Total Income | 98879 | 78957 |
| Total Expenses | 93465 | 75728 |
| EBIT | 5413 | 3229 |
| Net Profit (PAT) | 2782 | 1713 |
The annual outlook of the income statement is very good shows goof growth from the previous year.
Share Holding Pattern
Target price
Samvardhana Motherson International Limited (SAMIL) is well-positioned in the global automotive components industry, driven by strong financials, strategic acquisitions, and investments in emerging technologies like EV components and ADAS. Its global presence and alignment with India’s ‘Make in India’ initiative further strengthen its market position.
Despite short-term market fluctuations, Motherson’s long-term outlook remains positive. With a target price range of ₹150 to ₹180 and potential for improved earnings, it presents a promising investment opportunity for long-term investors.
