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Samvardhana Motherson International Ltd logo

Samvardhana Motherson International Ltd

NSE: MOTHERSON BSE: 517334

111.88

(-0.90)%

Mon, 02 Feb 2026, 00:21 am

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (2.5x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
  • Motherson Sumi Systems's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Motherson Sumi Systems's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Motherson Sumi Systems's earnings are expected to grow significantly at over 20% yearly.
  • Motherson Sumi Systems's earnings growth is expected to exceed the India market average.
  • Motherson Sumi Systems's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Motherson Sumi Systems's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Motherson Sumi Systems's net income is expected to increase by more than 50% in 2 years time.
  • Performance (ROE) is expected to be above the current IN Auto Components industry average.
  • An improvement in Motherson Sumi Systems's performance (ROE) is expected over the next 3 years.
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Cons

  • Cash flow for Motherson Sumi Systems is expected to decrease over the next 2 years.
  • Motherson Sumi Systems's earnings are expected to decrease over the next year.
  • Motherson Sumi Systems is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Motherson Sumi Systems's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Motherson Sumi Systems's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
  • Motherson Sumi Systems's revenue growth is positive but not above the India market average.

health

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Pros

  • Motherson Sumi Systems is profitable, therefore cash runway is not a concern.
  • Motherson Sumi Systems is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (54.4%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 1.7x debt.
  • Motherson Sumi Systems's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (115.3% vs 78.7% today).
  • Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).
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Cons

  • Motherson Sumi Systems's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Motherson Sumi Systems's level of debt (78.7%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Motherson Sumi Systems board of directors is about average.
  • Pankaj's remuneration is lower than average for companies of similar size in India.
  • Pankaj's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

    misc

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    Pros

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      Cons

      • Motherson Sumi Systems has significant price volatility in the past 3 months.

      past

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      Pros

      • Motherson Sumi Systems's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
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      Cons

      • Motherson Sumi Systems's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Motherson Sumi Systems used its assets less efficiently than the IN Auto Components industry average last year based on Return on Assets.
      • Motherson Sumi Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Motherson Sumi Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Motherson Sumi Systems's 1-year earnings growth is negative, it can't be compared to the IN Auto Components industry average.

      value

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      Pros

      • Motherson Sumi Systems is good value based on expected growth next year.
      • BSE:517334 is up 11.7% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Motherson Sumi Systems's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Motherson Sumi Systems's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Motherson Sumi Systems is overvalued based on assets compared to the IN Auto Components industry average.
      • Motherson Sumi Systems is overvalued based on earnings compared to the IN Auto Components industry average.
      • Motherson Sumi Systems is overvalued based on earnings compared to the India market.
      • 517334 underperformed the Auto Components industry which returned -22.4% over the past year.
      • 517334 underperformed the Market in India which returned -14.5% over the past year.
      • BSE:517334 is up 11.7% underperforming the Auto Components industry which returned 13.2% over the past month.

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