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The market expects Samvardhana Motherson to carry on much as it has.
At today’s share price, buyers are assuming Samvardhana Motherson grows about 15% a year, forever. Over the last ten years it actually grew about 18% a year. The two are close, so the share price does not need the business to improve or to stumble. It needs it to keep doing roughly what it already does.
- How it is valued: Discounted cash flow.
- What the price assumes: 15% growth, against 18% the model takes from its own record.
- Ten-year record: Between FY2018 and FY2026, Samvardhana Motherson's revenue went from ₹56,521 crore to ₹1,26,104 crore — it compounded at about 11% a year over 8 years.
- Biggest swing factor: Global vehicle production. Main risk: Thin margins.
01From wiring harnesses to a global supplier
Samvardhana Motherson International, founded by Vivek Chaand Sehgal and part-owned by Japan's Sumitomo Wiring Systems, makes wiring harnesses, rear-view mirrors, bumpers, dashboards, lighting and other parts for car and truck makers.
Most of its revenue comes from outside India — Europe, the Americas and Asia — largely through a long run of acquisitions of auto suppliers that it then tries to turn round.
02What the market is assuming
Work backwards from today's share price and you can see what buyers are quietly taking for granted. Here is the growth that price implies for Samvardhana Motherson, next to what the model assumes from the company's own record.
The further apart these two numbers are, the bigger the bet a buyer at today's price is making.
03Samvardhana Motherson's record, in plain numbers
Between FY2018 and FY2026, Samvardhana Motherson's revenue went from ₹56,521 crore to ₹1,26,104 crore — it compounded at about 11% a year over 8 years. Net profit grew from ₹2,260 crore to ₹4,086 crore, about 8% a year — slower than revenue, so margins narrowed. In FY2026 it kept 3.2% of revenue as net profit — against a low of 1.9% in FY2022 and a high of 4.0% in FY2018. The latest year added 10.9% to revenue, close to its own long-run pace.
Revenue and earnings per share in ₹, return on equity and leverage as ratios — all from the filed statements.
Revenue and net profit by year (₹ crore)
| Year | Revenue | Net profit | Margin |
|---|---|---|---|
| FY2018 | 56,521 | 2,260 | 4.0% |
| FY2019 | 63,523 | 2,098 | 3.3% |
| FY2020 | 63,537 | 1,294 | 2.0% |
| FY2021 | 57,370 | 1,569 | 2.7% |
| FY2022 | 63,536 | 1,182 | 1.9% |
| FY2023 | 78,701 | 1,670 | 2.1% |
| FY2024 | 98,692 | 3,020 | 3.1% |
| FY2025 | 1,13,663 | 4,146 | 3.6% |
| FY2026 | 1,26,104 | 4,086 | 3.2% |
04How Samvardhana Motherson gets valued — and why
Discounted cash flowThis business is valued on the cash it is expected to generate, discounted back at its cost of capital — with growth taken from its own ten-year record rather than from guidance.
05What decides Samvardhana Motherson's value
Global vehicle production
Sales follow car output worldwide.
Content per vehicle
Premium and electric cars use more of its parts.
Acquisition turnarounds
Lifting margins at bought companies creates value.
Diversification
Aerospace, health and logistics add new revenue.
06What could go wrong
- Thin margins. Small cost changes move profit.
- European auto weakness. Its biggest market is slowing.
- Debt from deals. Acquisitions add borrowing.
07What the full Motherson valuation shows
Sign in free to see the complete Samvardhana Motherson valuation
- ✓Fair value per share — from a ten-year discounted cash flow, every step shown
- ✓The Workbench — change revenue growth, the discount rate or terminal growth and watch Motherson's value move
- ✓Bull, base and bear cases — and exactly which assumptions move between them
- ✓Peer comparison — against Bosch India and other auto-parts makers
- ✓Downloadable report — the full write-up, yours to keep
08Questions people ask about Samvardhana Motherson
What does Motherson make?
Wiring harnesses, mirrors, bumpers, interiors, lighting and other vehicle parts.
Where does Motherson earn its revenue?
Mostly outside India, especially Europe and the Americas.
Why does Motherson buy other companies?
To add customers and products, often buying weak suppliers cheaply and improving them.
Is Samvardhana Motherson overvalued?
At ₹165 the market is pricing in roughly 15% sustained growth, against the ~18% its own record supports. That is less than it has delivered — on these numbers the market is asking the business for less than its own record, which usually means it doubts the record repeats.
What is the intrinsic value of Samvardhana Motherson?
It is computed from the filed financial statements using the method that fits this business (discounted cash flow), with every assumption shown alongside the result. The per-share figure and the full working are in the report.
How much debt does Samvardhana Motherson carry?
Debt to equity stands at 0.26, down from 0.30 at the start of the period — the balance sheet is a core input to the cost of capital used here.