📌 At a Glance
- FY25 revenue: ₹1,13,663 Cr 🚀 (up 15% YoY)
- EBITDA: ₹10,877 Cr (up 17%), margins steady at ~9.6%
- PAT: ₹3,803 Cr (up 40%) – big jump despite global chaos
- Final Dividend: ₹0.35/share + already paid ₹0.50 = ₹0.85 total for FY25
- Booked order book: $88+ billion (including non-auto)
- Celebrating 50 years with best-ever sales, 23 acquisitions, and 14 greenfield plants
5 decades later, Motherson is still proving one thing — “You don’t just survive in auto, you scale like a monster.”
🏢 About the Company
| Item | Details |
|---|---|
| Name | Samvardhana Motherson International Ltd |
| Formerly | Motherson Sumi Systems Ltd |
| Sector | Auto Ancillary + Non-Auto Diversification |
| Listed Since | 1993 (BSE/NSE) |
| Global Presence | 400+ facilities, 44 countries |
| Market Cap | ₹1.1+ Lakh Crore |
| Customers | Nearly all global OEMs (Auto, Aero, Medical) |
📊 Financial Highlights (FY25)
| Metric | FY25 | YoY Growth |
|---|---|---|
| Revenue | ₹1,13,663 Cr | +15% |
| EBITDA | ₹10,877 Cr | +17% |
| EBITDA Margin | 9.6% | Flat |
| PAT | ₹3,803 Cr | +40% |
| ROCE | 17.2% | ↑ Improved |
| Net Debt/EBITDA | 0.9x | ↓ Deleveraged |
| Capex | ₹4,433 Cr | On Track |
| Greenfield Projects | 14 underway | 9 launching in FY26 |
✅ Despite 23 acquisitions and volatile global demand, Motherson delivered its best ever topline and profitability.
🏗️ Strategic Growth Moves
- 88+ billion USD order book includes new sectors: aerospace, logistics, healthtech.
- Capex smartly done: Focused on ROCE, not reckless expansion.
- Trade barriers mitigated via localization, especially for US MCA compliance.
- 14 greenfields in progress, including EV components and non-auto verticals.
“If Tata Motors is EV king, Motherson is the guy selling the EV’s skeleton, nerves, and limbs.“
🧮 EduInvesting FV Calculation
Let’s look at the forward valuation 👇
| Parameter | Value |
|---|---|
| FY25 EPS (Estimated) | ₹5.40 |
| Forward P/E (Sector Avg) | 30x (Auto Ancillary – Tier 1 Global) |
| Fair Value (FV) | ₹162 |
| CMP | ₹152.12 |
| Upside | ~7% (Moderate) |
⚠️ This is not a deep value stock anymore. It’s a mega-cap compounder — priced for consistency, not surprise.
🔍 EduInvesting Verdict
“Motherson doesn’t pop — it grinds its way to the top.”
At ₹1.13L crore revenue and 9% margin, this is no longer a ‘cheap auto part maker’. It’s now:
- A tech-integrated, global parts empire
- Playing across multiple OEMs and multiple geographies
- Expanding into non-auto verticals like health & industrial solutions
Yet… the real flex?
“Despite 23 acquisitions, they still kept Net Debt/EBITDA below 1.”
⚠️ Risks & Red Flags
- Margins still <10% — not best-in-class
- Highly cyclical sector with commodity sensitivity
- Greenfield execution risk
- Dividend yield of ~0.5% is meh for such a large company
🔧 Final Thoughts
Samvardhana Motherson isn’t going to 10x from here. But it might be India’s Bosch + Flextronics + Magna rolled into one over the next 5 years.
The company just turned 50.
And by the looks of it — they’re only halfway done.
Author: Prashant Marathe
Date: 29 May 2025
Tags: Motherson FY25 Results, SAMIL financials, Auto ancillary India, global OEM suppliers, Motherson acquisitions, dividend, ROCE, ₹1.13 lakh crore revenue, 50-year milestone, EV component manufacturer
