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Samvardhana Motherson International Limited: Comprehensive Stock Analysis Report | Scrolls

by KarNivesh | 22 October, 2025


Samvardhana Motherson International Limited (SAMIL) stands among India’s largest auto component manufacturers, with a global presence across 44 countries and over 425 facilities. With a market capitalization of ₹1,10,525 crores and annual revenue of ₹1,13,663 crores (TTM), the company has evolved from a wiring harness producer in 1986 into a diversified automotive and technology conglomerate. The stock currently trades around ₹104.70, about 26% below its 52-week high, reflecting a blend of robust fundamentals and short-term headwinds.


Growth and Strategic Vision: SAMIL’s long-term performance has been remarkable - net profit has grown fivefold in five years, with Return on Capital Employed (ROCE) doubling from 10% to 18%. Under “Vision 2030,” the company targets revenue of ₹9,13,140 crores (US$108 billion) and 40% ROCE by expanding beyond automotive into aerospace, consumer electronics, and healthcare. However, a recent 42% quarterly profit drop due to European market weakness underscores the sector’s cyclicality.


Business Segments: The company operates five key divisions - Wiring Harness, Vision Systems, Modules & Polymer Products, Integrated Assemblies, and Emerging Businesses.

  • Modules & Polymer Products is the largest, contributing 44% of revenue, manufacturing interiors, exteriors, and sunroof systems.

  • Wiring Harness (25% of revenue) and Vision Systems (15%) are core profit drivers, benefiting from trends in electrification and driver-assistance technologies.

  • Emerging Businesses, including aerospace, healthcare, and electronics, now contribute 9% of revenue with the highest EBITDA margin (13.3%), projected to reach 25–30% by FY2030.


Recent Developments: SAMIL has pursued an acquisition-led strategy, completing 23 deals in five years. The acquisition of Yachiyo Industry (Honda’s subsidiary) added about ₹23,660 crores to the order book. The company also announced the purchase of Marelli Holdings and entered a joint venture with Crystan to supply Apple, marking its entry into consumer electronics. Its aerospace business has grown into a ₹2,082 crore segment with over ₹8,300 crores in confirmed orders.


Financial Highlights: Revenue has grown from ₹60,729 crores in FY2020 to ₹1,13,663 crores in FY2025, with net profit rising to ₹4,146 crores. ROCE improved to 17.3% in Q2 FY25, while net leverage reduced to 1.0x, supported by a ₹6,438 crore Qualified Institutional Placement (QIP) in September 2024. Despite acquisitions, the debt-to-equity ratio remains low at 0.32, showing sound financial health.


Samvardhana Motherson's revenue has grown consistently from Rs 60,729 crores in FY2020 to Rs 113,663 crores (TTM) in FY2025, representing a CAGR of approximately 13%.
Samvardhana Motherson's revenue has grown consistently from Rs 60,729 crores in FY2020 to Rs 113,663 crores (TTM) in FY2025, representing a CAGR of approximately 13%.

Industry Context: The Indian automobile sector, contributing 7.1% to GDP, grew 7.3% domestically in FY25, but European slowdowns affected exports. Declining steel prices, rural demand recovery, and interest rate cuts provide medium-term tailwinds, though global trade uncertainties and EV supply-chain dependencies remain risks.


Valuation and Outlook: SAMIL trades at a P/E ratio of 32.7x, below peers like Uno Minda and Schaeffler India, indicating potential undervaluation. Its ₹7,41,645 crore booked business and diversification into high-margin sectors provide strong visibility. With its aggressive Vision 2030 roadmap, stable governance, and global expansion, SAMIL remains a promising yet cyclical long-term investment, combining operational scale, diversification, and disciplined capital management.

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