In addition to that, it also plans to double its Return on Capital Employed (RoCE) to 40% by the end of the current plan, from the 18% that it had reported in the previous financial year.
No one country will account for more than 10% of the company’s overall topline, while the company also aspires to maintain a dividend payout ratio of up to 40%.Samvardhana Motherson is confident that more than 75% of their incremental revenue will come from the acquisitions that the company has made in the recent past.
With regards to value unlocking, Samvardhana Motherson said that more entities of the group will be listed, once they become more self-sustainable. The company has also clarified earlier that the 50% tariffs imposed by the Trump administration, stating that those will have no material impact on the business.Brokerage firm JPMorgan has maintained its “overweight” rating with a price target of ₹105, stating that over the last two five-year plans, Samvardhana Motherson’s sales have grown by 4x, even as the company missed its own aggressive targets.
Jefferies also has a “buy” rating with a price target of ₹110, stating that more than the absolute number, what stands out is the company’s huge growth appetite and a strategic pivot from autos to broader manufacturing ambition spanning sectors including electronics & aerospace.
The brokerage also adds that it likes the company’s strong manufacturing capabilities and its expanding addressable market.
InCred has an “add” rating on the stock with a price target of ₹117, stating that the quadrupling of sales target of the next five years appears stretched.
While Samvardhana Motherson’s RoCE has increased to the high-teens, it still falls short of the 40% management target, and that this aspect will remain the key for shareholder value creation, the brokerage added.
Shares of Samvardhana Motherson ended little changed on Friday at ₹94.39. The stock has declined 9% so far in 2025.
