Samvardhana Motherson International Limited was listed on the BSE on August 14, 1996. In the last five years, its stock has given a massive return of around 150%. Will Samvardhana Motherson continue to provide such great returns in the future as well? Let’s explore Samvardhana Motherson’s growth potential and the Samvardhana Motherson share price target 2025 to 2050 in this article.
About Samvardhana Motherson
Samvardhana Motherson was founded in 1975. It is a global supplier of automotive parts and solutions, offering products such as wiring harnesses, mirrors, interior and exterior parts, and more. The company works with numerous car manufacturers worldwide. It operates in several countries and prioritises innovation and quality to meet customer demands.
Samvardhana Motherson Business Model
- Automotive Parts Manufacturing: Samvardhana Motherson manufactures various automotive parts, including mirrors, bumpers, wiring, and interior components.
- Supplying Major Car Brands: The company works with top automakers such as BMW, Mercedes, and Toyota. It receives contracts to supply parts in large quantities, ensuring regular revenue.
- Aftermarket Sales: In addition to selling to automakers, the company sells spare parts for repair and replacement.
- Plastic Moulding: Samvardhana Motherson manufactures plastic components for automobile interiors, reports, and door panels.
- Non-Automotive Business: Apart from automobiles, the company manufactures parts for aeroplanes, medical equipment, and other industries, allowing it to earn revenue from several sources.
Samvardhana Motherson Fundamental Analysis
| Stock Name | Samvardhana Motherson International Ltd. |
|---|---|
| NSE Symbol | MOTHERSON |
| Sector | Auto Ancillaries |
| Market Cap | ₹ 1,03,434 Cr. |
| 52W High | ₹ 217 |
| 52W Low | ₹ 107 |
| Stock P/E | 25.1 |
| Book Value | ₹ 46.4 |
| Dividend Yield | 0.56 % |
| ROCE | 13.7 % |
| ROE | 11.8 % |
| Face Value | ₹ 1.00 |
| Industry PE | 27.4 |
| Price to book value | 3.20 |
| Debt to equity | 0.78 |
| PEG Ratio | 2.05 |
| Quick ratio | 0.87 |
| Shareholders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 64.77% | 60.36% | 58.12% |
| FIIs | 10.87% | 12.44% | 12.42% |
| DIIs | 14.74% | 18.15% | 20.96% |
| Government | 0.06% | 0.06% | 0.05% |
| Public | 9.55% | 8.98% | 8.44% |
| No. of Shareholders | 10,27,023 | 10,39,407 | 13,06,219 |
Key Factors Driving Samvardhana Motherson’s Future Growth
- Strategic Acquisitions: Since September 2022, Samvardhana Motherson has bought 16 companies, including Yachiyo, Lumen, and ADI. These purchases have helped the company grow. These purchases should bring in an extra ₹14,500 crore in sales for the company in FY25, making its products and market reach better.
- Putting money into new projects: The business has planned ₹5,000 crore in capital expenditures for FY25, with 70% of that going to new facilities in India, China, and Poland that are not related to cars.
- Moving Out of the Automotive Sector and Going into Other Sectors: Samvardhana Motherson is moving out of the automotive sector and going into aerospace, healthcare, and medical devices. As soon as possible, the company wants to get at least 25% of its income from businesses that aren’t related to cars.
- Strategic partnerships that improve capabilities: Samvardhana Motherson has teamed up with REE Automotive to manage the sourcing, logistics, and assembly of REE’s electric truck models as part of a supply chain partnership. This partnership should help increase production and meet the rising demand for REE’s cars.
- Product Innovation and R&D Investment: Samvardhana Motherson is putting a lot of money into research and development (R&D). It spends about 5% of its annual revenue on developing new products for electric vehicles (EVs) and advanced driver assistance systems (ADAS).
- Taking Advantage of the Premiumization Trend: There is a global trend towards high-end vehicles. Samvardhana Motherson can benefit by providing high-value parts like camera-based detection systems and high-end upholstery, which will increase its revenue per vehicle.
Pros of Samvardhana Motherson
- Strong Sales Growth: Samvardhana Motherson has achieved a strong sales growth of 20% CAGR over the last three years.
- Strong Profit Growth: Samvardhana Motherson has achieved a strong profit growth of 39% CAGR over the last three years.
- Low PE Ratio Compared to Peers: Samvardhana Motherson has a PE ratio of 25.1, which is lower than the industry average of 27.4, making it relatively undervalued and potentially a good investment opportunity.
- Increase in DIIs Holding: DIIs holding increased from 19.20% in December 2024 to 20.96% in March 2025, showing a positive outlook towards Samvardhana Motherson by the DIIs.
Cons of Samvardhana Motherson
- Low Return on Equity (ROE): Samvardhana Motherson’s 5-year average ROE is 8.83%, which indicates inefficient use of shareholder funds to generate profits.
- Low Return on Capital Employed (ROCE): Samvardhana Motherson’s 5-year average ROCE is 9.12%, indicating inefficient use of capital to generate profits.
- High Price to Book Value: Samvardhana Motherson is trading at a Price-to-Book Value (P/B) ratio of 3.20, which indicates that its stock is significantly overvalued compared to its book value.
- Decrease in FIIs Holding: Foreign Institutional Investors (FIIs) have reduced their holding to 12.42% in March 2025 from 14.31% in December 2024, indicating a decline in FII’s confidence in the company’s future growth prospects.
Samvardhana Motherson Ltd Balance Sheet
| Particulars | March 2023 | March 2024 | Sept 2024 |
|---|---|---|---|
| Equity Capital | 678 | 678 | 704 |
| Reserves | 21,774 | 25,477 | 31,930 |
| Borrowings | 13,792 | 19,922 | 25,417 |
| Other Liabilities | 25,086 | 38,101 | 39,828 |
| Total Liabilities | 61,330 | 84,178 | 97,879 |
| Fixed Assets | 23,147 | 30,122 | 32,455 |
| CWIP | 1,478 | 2,498 | 2,693 |
| Investments | 6,290 | 6,521 | 6,615 |
| Other Assets | 30,415 | 45,037 | 56,115 |
| Total Assets | 61,330 | 84,178 | 97,879 |
By the end of 2025, the Samvardhana Motherson share price is expected to be around ₹200 in normal conditions. In a bear market, it might be ₹180, and in a bull market, it may go up to ₹250.
| Samvardhana Motherson Share Price Target 2025 | Rupees (₹) |
|---|---|
| 1st Target | 180 |
| 2nd Target | 200 |
| 3rd Target | 250 |
In 2026, the Samvardhana Motherson share price is expected to be around ₹260 in a normal situation. In a bear market, it might be ₹250, and in a bull market, it may cross ₹300.
| Samvardhana Motherson Share Price Target 2026 | Rupees (₹) |
|---|---|
| 1st Target | 250 |
| 2nd Target | 260 |
| 3rd Target | 300 |
According to our analysis, the Samvardhana Motherson share price is expected to be around ₹350 in 2027. In a bear market, it might be ₹300, and in a bull market, it may cross ₹450.
| Samvardhana Motherson Share Price Target 2027 | Rupees (₹) |
|---|---|
| 1st Target | 300 |
| 2nd Target | 350 |
| 3rd Target | 450 |
According to our analysis, the Samvardhana Motherson share price may trade near ₹400 by 2028; bearish conditions could pull it down to ₹350, while a strong bull run might lift it to ₹550.
| Samvardhana Motherson Share Price Target 2028 | Rupees (₹) |
|---|---|
| 1st Target | 350 |
| 2nd Target | 400 |
| 3rd Target | 550 |
In a normal situation, the Samvardhana Motherson share price is projected to be approximately ₹450 in 2029. In a bear market, the value may be as low as ₹400, while in a bull market, it may rise to ₹700.
| Samvardhana Motherson Share Price Target 2029 | Rupees (₹) |
|---|---|
| 1st Target | 400 |
| 2nd Target | 450 |
| 3rd Target | 700 |
In a normal situation, the Samvardhana Motherson share price is projected to be approximately ₹600 in 2030. In a bear market, the value may be as low as ₹450, while in a bull market, it may rise to ₹950.
| Samvardhana Motherson Share Price Target 2030 | Rupees (₹) |
|---|---|
| 1st Target | 450 |
| 2nd Target | 600 |
| 3rd Target | 950 |
By 2035, the Samvardhana Motherson share price is projected to be around ₹1500 under normal conditions. In adverse markets, the price could fall to ₹900, while favorable conditions might push it up to ₹2850.
| Samvardhana Motherson Share Price Target 2035 | Rupees (₹) |
|---|---|
| 1st Target | 900 |
| 2nd Target | 1500 |
| 3rd Target | 2850 |
Under normal conditions, the Samvardhana Motherson share price might hit ₹3500 by 2040. A bearish trend could lower it to ₹1800, whereas a bullish surge could raise it to ₹8550.
| Samvardhana Motherson Share Price Target 2040 | Rupees (₹) |
|---|---|
| 1st Target | 1800 |
| 2nd Target | 3500 |
| 3rd Target | 8550 |
In 2050, the Samvardhana Motherson share price is expected to be around ₹25,000 in a normal situation. In a bear market, it might be ₹7200, and in a bull market, it may go up to ₹51,300.
| Samvardhana Motherson Share Price Target 2050 | Rupees (₹) |
|---|---|
| 1st Target | 7200 |
| 2nd Target | 25,000 |
| 3rd Target | 51,300 |
| Years | Target Price |
|---|---|
| Samvardhana Motherson Share Price Target 2025 | ₹180 to ₹250 |
| Samvardhana Motherson Share Price Target 2026 | ₹250 to ₹300 |
| Samvardhana Motherson Share Price Target 2027 | ₹300 to ₹450 |
| Samvardhana Motherson Share Price Target 2028 | ₹350 to ₹550 |
| Samvardhana Motherson Share Price Target 2029 | ₹400 to ₹700 |
| Samvardhana Motherson Share Price Target 2030 | ₹450 to ₹950 |
| Samvardhana Motherson Share Price Target 2035 | ₹900 to ₹2850 |
| Samvardhana Motherson Share Price Target 2040 | ₹1800 to ₹8550 |
| Samvardhana Motherson Share Price Target 2050 | ₹7200 to ₹51,300 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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