The group’s roadmap aims for a fourfold increase in revenue by FY2030, stronger returns, and unlocking value through new listings, while brokerages including JPMorgan, Jefferies, and InCred offered mixed optimism regarding execution.
Samvardhana Motherson shares rose nearly 4% on Monday after the company unveiled its latest five-year plan, targeting gross revenue of $108 billion by FY2030, more than four times the $25.7 billion reported in FY25.
The company also aims to double the return on capital employed to 40% from 18%, keep no single country above 10% of overall revenue, and maintain a dividend payout ratio of up to 40%.
The company said over 75% of incremental revenue will come from acquisitions made in recent years, while value unlocking will be pursued by listing more group entities once they become self-sustainable. It reiterated earlier that the 50% tariffs imposed by the Trump administration will not materially impact its business.
Investor interactions are scheduled this week, including one with ICICI Securities on Sept. 12.
Brokerage Views
JPMorgan kept its ‘overweight’ rating with a price target of ₹105, noting that while past five-year plans missed aggressive targets, sales still quadrupled. Jefferies maintained a ‘buy’ call with a target of ₹110, highlighting Motherson’s pivot from autos to broader manufacturing, spanning electronics and aerospace.
InCred gave an ‘add’ rating with a target of ₹117, flagging the fourfold sales target as ambitious but pointing out a RoCE improvement to high teens as a key factor for shareholder value creation.
Technical Outlook
SEBI-registered analyst Deepak Pal said Motherson Sumi has shown a strong recovery after a recent correction, making higher highs for five consecutive sessions.
He noted the stock is finding support at the 14-day EMA and moving toward the 55-day EMA, which may act as the next hurdle.
Relative strength index (RSI) around 59 and a potential moving average convergence divergence (MACD) reversal signal improving strength, he said, adding that dips could be opportunities for long-term investors to accumulate.
Recent Performance And Upcoming Triggers
The company reported first-quarter (Q1) revenue of ₹2,495 crore, up 14% year-over-year, with a net profit of ₹143 crore and margins of 5.7%. Management visibility has been high with frequent investor meetings.
The second quarter results, expected in early November, will be the next major trigger, with a strong beat or optimistic commentary seen as potential catalysts.
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘bearish’ amid ‘low’ message volume.
Samvardhana Motherson’s stock has declined 5.3% so far in 2025.
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