Samvardhana Motherson International Ltd, formerly known as Motherson Sumi Systems Limited, is a prominent player in the global automotive supply chain. Established in 1986 as a joint venture with Sumitomo Wiring Systems, the company has grown into one of the world’s leading specialised automotive component manufacturers for Original Equipment Manufacturers (OEMs). SAMIL, listed on the BSE and NSE in India since 1993, operates more than 400 facilities across 44 countries, supporting a diverse global customer base.
On 2nd July 2024, SAMIL’s share price crossed the significant mark of Rs 200. This milestone follows a steady progression in the company’s stock performance over the years. The share price journey includes crossing Rs 50 on 1st July 2014, Rs 100 on 30th May 2017, and Rs 150 on 30th May 2024. The leap from Rs 150 to Rs 200 occurred in just 33 days, reflecting robust market confidence.
| Share price | Date on which respective share prices were crossed | Days Required |
| Rs 50 | July 01, 2014 | – |
| Rs 100 | May 30, 2017 | 1064.00 |
| Rs 150 | May 30, 2024 | 2557.00 |
| Rs 200 | July 02, 2024 | 33.00 |
SAMIL delivered its best-ever performance in FY24, with full-year revenues of approximately Rs 98,700 crores, marking a 25% increase. The EBITDA rose by 46% to over Rs 9,300 crores, and the PAT increased by 82% to over Rs 2,700 crores compared to FY23. The Emerging Businesses segment reached a revenue of approximately $1 billion, showing strong profitability and the highest margins among all divisions.
The global light vehicle production grew by approximately 8% to 91 million in FY24, with emerging markets driving volume growth despite Europe and North America still being 10% to 15% below pre-COVID levels. SAMIL’s portfolio is powertrain agnostic, positioning it to benefit from industry trends like premiumisation, SUVs, and a gradual shift towards EVs and hybrids.
SAMIL’s growth strategy is centred around organic growth, inorganic growth through mergers and acquisitions, and strategic alliances. The company has a robust automotive booked business of USD 83.9 billion, having completed 43 acquisitions since 2002, along with establishing 27 strategic partnerships. This strategy has significantly enhanced SAMIL’s market presence and diversified its product offerings.
In FY25, SAMIL plans to invest Rs 2,000 crores in 18 new Greenfield plants across India, China, and Poland. The company has also improved its leverage ratio to 1.4x from 1.7x and reduced gross debt by Rs 1,800 crores compared to December 2023. With strong liquidity, including undrawn committed lines and cash of approximately Rs 15,000 crores as of March 31, 2024, SAMIL is well-positioned for continued growth.
SAMIL has closed key acquisitions, including Dr. Schneider and SAS, with the impact of acquisitions like Yachiyo, AD Industries, and Lumen expected to be visible from Q1 FY25. The company anticipates its reported revenues to increase to approximately Rs 1,13,000 crores, surpassing the current reported revenue of approximately Rs 98,700 crores for FY24.
SAMIL remains focused on ROCE and absolute profitability, with a strategic vision to achieve consolidated revenues of USD 36 billion by 2025 and a 40% return on capital employed. The company’s non-automotive business, incubated as part of its Vision 2025 strategy, shows potential for exponential growth, benefiting from tailwinds in emerging markets and continuous investments in capex and acquisitions.
Conclusion
Samvardhana Motherson International Ltd’s achievement of surpassing Rs 200 per share marks a significant milestone, reflecting the company’s robust financial performance, strategic growth initiatives, and strong market position. Over the last ten years, SAMIL has achieved a compound annual growth rate (CAGR) of 12% in sales, 14% in profit, and 13% in stock price.
As the company maintains its focus on sustainability and customer-centric solutions, it remains a key player in the global automotive supply chain and beyond. . In the past six months, shares have delivered 100% returns, with 70% gains in the past three months and 32.96% in the past month.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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