Synopsis:
Samvardhana Motherson approved a 1:2 bonus share issue with 97.58% shareholder support via electronic voting in July 2025.
The shares of the Large-cap company, specializing primarily in the manufacture and sale of components to automotive original equipment manufacturers, are in focus after securing shareholders’ approval for a 1:2 bonus share issue
With a market capitalization of Rs. 1,09,622.01 Crores on Monday, the shares of Samvardhana Motherson International Ltd rose by 1.2 percent after making a high of Rs. 155.85 compared to its previous closing price of Rs. 153.85.
Samvardhana Motherson International Ltd, primarily in the manufacture and sale of components to automotive original equipment manufacturers, has received shareholders’ approval for a bonus issue.
They have announced that shareholders have approved the issue of bonus shares in a 1:2 ratio (one bonus share for every two shares held) through a postal ballot, with 97.58% votes in favor and only 2.42% against. The voting was conducted electronically from June 6 to July 5, 2025, and the resolution passed with the required majority.
Financials & Others
The company’s revenue rose by 8.4 percent from Rs. 27,141 crore to Rs. 29,433 crore in Q4FY24-25. Meanwhile, the Net profit declined from Rs. 1,371.82 crore to Rs. 1,050.5 crore during the same period.
The company’s P/E ratio of 28.49 is significantly lower than the industry average of 47.53, and its PEG ratio of 0.82 indicates potential undervaluation. It also maintains a low debt-to-equity ratio of 0.49, reflecting prudent financial management.
Over the past three years, the company has achieved an average revenue growth of 15.67% and an average net profit growth of 54.59%, showcasing strong operational performance and profitability.
Samvardhana Motherson International has set a capex guidance of Rs. 6,000 crore for FY26. About 50% will be allocated to growth initiatives and 50% to regular capex, with nearly 70% of the total spend focused on non-automotive businesses as part of its diversification strategy.
Its revenue is component-wise diversified: Wiring Harness contributes 25%, Vision Systems 15%, Bumpers 11%, Integrated Assembly 8%, Door Panels 8%, Instrument Panel 5%, Sunroof and Fuel Tank 5%, Engineering 4%, Other Polymer Products 13%, and Others 6%.
The company’s customer base is well diversified, with key clients including Volkswagen (9%), Mercedes Benz (7%), Audi (7%), BMW (6%), Maruti Suzuki (5%), Honda Cars (5%), Porsche (4%), and several other major global and Indian automotive manufacturers each contributing between 1% and 3% of revenue.
Samvardhana Motherson International Ltd (formerly Motherson Sumi Systems Ltd) is a Noida‑based Indian multinational and one of the world’s top automotive component suppliers. Founded in 1986 as a joint venture with Japan’s Sumitomo, it designs and manufactures wiring harnesses, rear‑view mirror systems, plastic and polymer modules, precision metal parts, lighting, electronics, and industrial IT solutions.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post 1:2 Bonus Share: Auto ancillary stock jumps after securing approval for bonus issue appeared first on Trade Brains.