By [Pradeep Saran]
October 9, 2024
Samvardhana Motherson International Ltd. (SMIL) is one of India’s top automotive components manufacturers with a global footprint. Over the years, it has expanded significantly, producing high-quality parts for the automotive, aerospace, and healthcare industries. The company’s focus on innovation and diversification has made it a strong contender for long-term investors.
This article outlines the share price target for Samvardhana Motherson in 2024, 2025, 2030, 2040, and 2050 based on market trends and company growth.
Explore Samvardhana Motherson Share Price Target for 2024, 2025, 2030, 2040, and 2050. Discover the company’s growth prospects, competitors, financial performance, and future plans for long-term success.
What is Samvardhana Motherson International Ltd (NSE: MOTHERSON)?
Samvardhana Motherson International Ltd. is a Noida-based automotive components manufacturer. Established in 1975, the company supplies key automotive parts such as wiring harnesses, mirrors, dashboards, plastic parts, and electric vehicle (EV) components. The company has strong partnerships with major global car manufacturers like BMW, Audi, and Mercedes-Benz, and it is also diversifying into aerospace and medical equipment manufacturing.
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Annual Report of Samvardhana Motherson International Ltd (SAMIL) for the year 2023-2024,
Financial Metric | FY 2023-2024 | FY 2022-2023 | % Growth |
---|
Revenue from Operations (Million ₹) | 986,917 | 787,881 | 25.26% |
Consolidated Profit After Tax (Million ₹) | 27,162 | 14,956 | 81.61% |
Total Assets (Million ₹) | 1,180,562 | 962,345 | 22.67% |
Total Liabilities (Million ₹) | 345,123 | 280,410 | 23.08% |
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) (Million ₹) | 94,742 | 64,647 | 46.57% |
Depreciation and Amortization Expense (Million ₹) | 38,105 | 31,358 | 21.59% |
Finance Costs (Million ₹) | 18,112 | 7,809 | 131.95% |
Exceptional Expenses (Million ₹) | 2,499 | 995 | 151.18% |
Return on Capital Employed (ROCE) | 17% | 11% | – |
Summary:
- Revenue Growth: The company experienced a remarkable revenue increase of 25.26%, primarily driven by strong demand in the automotive sector.
- Profit Growth: Consolidated Profit After Tax surged by 81.61% due to better operational efficiency and the successful integration of strategic acquisitions.
- EBITDA: SAMIL’s EBITDA increased by 46.57%, showcasing robust performance across all business segments.
- ROCE Improvement: Return on Capital Employed (ROCE) improved from 11% to 17%, reflecting enhanced capital utilization despite high capital expenditures and acquisitions.
Samvardhana Motherson Share Price Target (2024 to 2050)
Year | Minimum Price (₹) | Maximum Price (₹) |
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2024 | ₹110 | ₹240 |
2025 | ₹230 | ₹355 |
2030 | ₹790 | ₹960 |
2040 | ₹1,620 | ₹1,910 |
2050 | ₹2,700 | ₹3,120 |
Summary of Share Price Targets:
- 2024: In 2024, Samvardhana Motherson is expected to see continued growth due to increasing global demand for electric vehicle (EV) components. The share price is projected to range between ₹110 and ₹240.
- 2025: By 2025, the company’s ongoing expansions and strategic partnerships are likely to drive the stock price to between ₹230 and ₹355, benefiting from strong revenue growth and global market presence.
- 2030: As the company plays a critical role in the EV market, with increasing demand for wiring harnesses and automotive parts, the share price is expected to rise to between ₹790 and ₹960 by 2030.
- 2040: In 2040, Samvardhana Motherson’s entry into the aerospace and healthcare industries, alongside continued innovation, could lead the stock price to rise further, ranging from ₹1,620 to ₹1,910.
- 2050: By 2050, with major investments in R&D and a strong global footprint across industries, Samvardhana Motherson’s stock is projected to reach between ₹2,700 and ₹3,120, reflecting the company’s long-term growth and sustainability.
Samvardhana Motherson Share Price Target 2024
In 2024, the automotive industry is expected to continue its recovery, with increasing demand for electric vehicles (EVs). Samvardhana Motherson is well-positioned to take advantage of this trend due to its focus on EV components and innovative automotive solutions.
Year | Minimum Price (₹) | Maximum Price (₹) |
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2024 | ₹110 | ₹240 |
Summary:
By 2024, Samvardhana Motherson’s stock is expected to see solid growth, with prices ranging from ₹110 to ₹240, driven by expanding global partnerships and increasing demand for EV components.
Samvardhana Motherson Share Price Target 2025
As the company continues its global expansion and establishes a stronger foothold in the electric vehicle market, its revenue is expected to increase steadily in 2025. With a focus on innovation and diversification, the share price is expected to rise.
Year | Minimum Price (₹) | Maximum Price (₹) |
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2025 | ₹230 | ₹355 |
Summary:
In 2025, Samvardhana Motherson’s price target is between ₹230 and ₹355, driven by increasing demand for electric vehicles and the company’s strategic global partnerships.
Samvardhana Motherson Share Price Target 2030
The electric vehicle revolution will play a critical role in Samvardhana Motherson’s growth by 2030. The company’s ability to supply key EV components to major manufacturers is expected to significantly increase its market value.
Year | Minimum Price (₹) | Maximum Price (₹) |
---|
2030 | ₹790 | ₹960 |
Summary:
By 2030, Samvardhana Motherson’s stock price is expected to range from ₹790 to ₹960, benefiting from strong demand in both the automotive and non-automotive sectors, including aerospace and healthcare.
Samvardhana Motherson Share Price Target 2040
By 2040, Samvardhana Motherson’s expansion into the aerospace and healthcare industries will have further solidified its position as a key player in global manufacturing. The stock is expected to continue its upward trajectory as it diversifies and invests heavily in research and development (R&D).
Year | Minimum Price (₹) | Maximum Price (₹) |
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2040 | ₹1,620 | ₹1,910 |
Summary:
In 2040, Samvardhana Motherson’s stock is expected to trade between ₹1,620 and ₹1,910, bolstered by its successful expansion into non-automotive industries and continued growth in the EV sector.
Samvardhana Motherson Share Price Target 2050
Looking ahead to 2050, Samvardhana Motherson will likely be a global leader in both automotive and non-automotive sectors. With significant investments in new technologies and partnerships, the stock is expected to reach new heights.
Year | Minimum Price (₹) | Maximum Price (₹) |
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2050 | ₹2,700 | ₹3,120 |
Summary:
By 2050, the share price could rise to between ₹2,700 and ₹3,120, as the company’s long-term growth strategies and investments in research, technology, and sustainability pay off.
Samvardhana Motherson Share Performance Chart
Samvardhana Motherson Fundamental
Samvardhana Motherson Valuation and summery
Competitors of Samvardhana Motherson
Samvardhana Motherson faces competition from both Indian and global automotive component manufacturers, including:
- Bosch
- Valeo
- Magna International
- Continental AG
These companies, like Motherson, focus on automotive components, EV parts, and smart technologies.
Products and Services
Samvardhana Motherson offers a wide range of products and services, including:
- Wiring Harnesses
- Mirrors
- Plastic Interior and Exterior Parts
- Electric Vehicle Components
- Aerospace Parts
- Medical Equipment and Healthcare Solutions
Future Plans of Samvardhana Motherson
The company plans to further diversify its product offerings and expand into new industries such as aerospace and healthcare. Samvardhana Motherson is also investing heavily in EV components and plans to achieve carbon neutrality by 2040.
Profit and Loss Table
Metric | FY 2023-24 (₹ Cr) |
---|
Revenue | ₹98,692 |
Net Profit | ₹2,716 |
EBITDA | ₹9,325 |
ROCE (%) | 17% |
Summary:
In FY 2023-24, Samvardhana Motherson saw a 25% increase in revenue and an 82% rise in net profit, driven by global demand for its automotive components and EV-related products.
Pros and Cons
Pros:
- Strong global presence with key partnerships.
- Diversified product portfolio including EV and non-automotive sectors.
- Consistent investment in R&D and new technologies.
- Solid financial performance with strong revenue growth.
Cons:
- Heavy reliance on the automotive sector.
- High competition in the global market.
- Capital-intensive expansion strategies.
Risk Factors
- Economic Slowdown: A global economic downturn could affect demand for automotive parts.
- Technological Disruptions: Failure to adapt to new technologies could impact the company’s market share.
- Supply Chain Issues: Disruptions in the supply chain could lead to delays in product delivery and loss of business.
- Currency Fluctuations: As a global company, currency risks may affect earnings.
FAQs
What does Samvardhana Motherson specialize in?
The company specializes in automotive parts like wiring harnesses, mirrors, and electric vehicle components.
Is Samvardhana Motherson expanding into other sectors?
Yes, the company is expanding into aerospace, medical equipment, and healthcare sectors.
What are the stock price targets for 2025?
The stock price for 2025 is expected to be between ₹230 and ₹355.
Who are the major competitors of Samvardhana Motherson?
Competitors include Bosch, Valeo, and Magna International.
Is Samvardhana Motherson investing in electric vehicles?
Yes, the company is heavily investing in electric vehicle components and technologies.
What is the future outlook for the company?
The future looks bright with expansions into EV, aerospace, and healthcare, ensuring long-term growth.
What is the company’s revenue for FY 2023-24?
The company reported revenue of ₹98,692 crore for FY 2023-24.
Conclusion
Samvardhana Motherson International Ltd. is a major player in the global automotive components market, with a strong future ahead due to its diversification into non-automotive sectors. With consistent innovation, strong partnerships, and a growing focus on electric vehicles, the company’s stock is expected to show robust growth over the coming years. Long-term investors may find this a compelling opportunity given the company’s future plans and consistent performance.
Disclaimer: This forecast is based on available information and analysis. Actual stock prices can be influenced by various factors, including geopolitical events, unforeseen circumstances, and changes in market sentiment. It is essential to conduct thorough research and consider multiple factors before making any investment decisions.
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