Samvardhana Motherson Share PriceRises After Tariff Clarification

Samvardhana Motherson share price jumped by nearly 4% on early Friday. This followed the company’s clarification on potential US tariffs. The tariffs, proposed by US President Donald Trump, are targeted at imported cars and auto components.

The company stated most of its US-bound products are US-made or USMCA-compliant. Thus, the tariffs are unlikely to significantly impact its financials.

However, future impact depends on specific tariff details. These include product, component, and territory inclusions. The stock had fallen sharply on Thursday after the tariff announcement. The US is Samvardhana’s second-largest market, contributing 20% of revenue.

Samvardhana Motherson Share Price Performance And Financials

Samvardhana Motherson is India’s largest auto parts maker. The company reported a net profit of ₹879 crore for Q3 FY25. This was higher than the ₹542 crore in the same period last year. However, investors are disappointed, as they were expecting a larger profit. Weak global car sales were cited as a contributing factor by the management.

Global car sales declined by about 1% in the December quarter. This affected the company’s profitability. Margins in its modules and polymers business also decreased. They fell to 8% from 8.8%. This segment used to be a major revenue driver for the company.

Samvardhana Motherson share price has shown mixed performance. It has gained over 12% in the past year. However, it has declined by over 15% year-to-date. The recent rise reflects investor relief after the tariff clarification. The company’s significant US presence mitigates immediate concerns.

Conclusion

Samvardhana Motherson share price rebounded after clarifying the limited impact of US tariffs. This is due to its US manufacturing and USMCA compliance. Earlier tariff worries had negatively affected the share price. The stock’s future performance will depend on tariff developments and market conditions.

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