Samvardhana Motherson Shares Rally 6% After Declaring €50 Mn Cost Cuts

SamvardhanaMotherson shares went up by nearly 6% on Friday, April 11, after the company shared plans to cut costs by €50 million. The stock reached a high of ₹120.00 on the NSE during the day, showing fresh interest from investors after a long period of weak performance.

Company Plans to Cut Costs in Europe

Samvardhana Motherson International is implementing a cost reduction strategy through its subsidiary, SMRP BV. The plan aims to save around €50 million by improving the way the company works in Central and Western Europe. This move comes as the company deals with changes in the global auto industry, supply chain issues, and new rules in different countries.

The company said, “Motherson is focused on creating value for its stakeholders. Since 2020, we have completed 23 acquisitions and made big investments across the world. This step will help us stay strong in a changing market.”

Though the company did not give full details of how the cost cuts will happen, the large number shows that it is serious about improving efficiency and long-term performance.

Small Tax Penalty in South Africa

Along with this news, the company also said that its step-down unit, MSSL RSA, received a tax notice from the South African Revenue Services. The penalty is ZAR 4,985,770 (around ₹2.19 crore) for late tax payment. However, the company said this will not have a big impact on its business or financial health.

SamvardhanaMotherson Share Price History

Despite the recent uptick, SamvardhanaMotherson shares have struggled over the past year, falling 3.95% in the last 12 months. Since the beginning of the year, the stock has declined by 27.15%. In the last six months, it fell by 45.12%, while in the past three months, it went down 23.94%. Over the last month alone, the stock lost 11.50%.

On Friday, April 11, SamvardhanaMotherson share price rose to ₹120.00 on the NSE, up 6%. As of 2:58 PM, it was trading at ₹118.59, up 4.94%, offering some relief after recent declines.

Conclusion

The new cost-cutting plan shows that Samvardhana Motherson is taking steps to improve its business and stay strong in a changing market. While the stock is still under pressure, this move may help bring back investor confidence over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.