Shares of Samvardhana Motherson International Ltd. gained 2.01% on Monday, September 8, closing at ₹96.50 on the NSE after the company outlined an ambitious five-year roadmap.
The auto component manufacturer is targeting gross revenue of $108 billion by FY30, over 4x the $25.7 billion reported in FY25. As part of the plan, the group also aims to double its Return on Capital Employed (RoCE) to 40% from the 18% recorded in the last financial year, while maintaining a dividend payout ratio of up to 40%.
The company emphasized that no single country will contribute more than 10% to its overall topline, reflecting its global diversification strategy. It also expects over 75% of incremental revenue growth to come from recent acquisitions. Additionally, management indicated that more group entities could be listed in the future, once they become self-sustainable.
On the policy front, Samvardhana Motherson clarified that the recently announced 50% U.S. tariffs by the Trump administration will have no material impact on its business.
Brokerages’ Views & Price Targets
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JPMorgan: Maintained “overweight” rating with a ₹105 target, citing the company’s ability to quadruple sales in past five-year cycles.
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Jefferies: Retained “buy” with a ₹110 target, highlighting the pivot from autos into broader manufacturing, including electronics and aerospace.
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InCred: Assigned “add” with a ₹117 target, but flagged that the quadrupling of sales looks stretched, adding that execution on RoCE improvement will be critical for shareholder value.
Investor sentiment turned positive in Monday’s session, with the stock climbing steadily as the group’s growth appetite and strategic diversification drew attention.
