Samvardhana Motherson International Ltd (MOTHERSON) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Samvardh. Mothe.

Endurance Tech

Exide Inds.

Tube Investments

Sona BLW Precis.

Uno Minda

Bosch

Bharat Forge

Schaeffler India

ZF Commercial

Motherson Wiring

Why is Samvardhana Motherson International Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.61 times

Healthy long term growth as Net Sales has grown by an annual rate of 15.01% and Operating profit at 18.22%

The company has declared Positive results for the last 3 consecutive quarters

PBT LESS OI(Q) At Rs 1,451.33 cr has Grown at 56.42%
PAT(Q) At Rs 1,032.05 cr has Grown at 70.1%
DEBT-EQUITY RATIO(HY) Lowest at 0.47 times

With ROCE of 13.1, it has a Attractive valuation with a 3.6 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 78.67%, its profits have risen by 34.4% ; the PEG ratio of the company is 1.1

High Institutional Holdings at 33.51%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Samvardh. Mothe. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Samvardh. Mothe. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Samvardh. Mothe.

78.67%

2.30

34.25%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.01%

EBIT Growth (5y)

18.22%

EBIT to Interest (avg)

3.40

Debt to EBITDA (avg)

2.32

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

2.09

Tax Ratio

27.53%

Dividend Payout Ratio

15.73%

Pledged Shares

2.34%

Institutional Holding

33.51%

ROCE (avg)

10.88%

ROE (avg)

8.65%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.33

EV to EBIT

25.89

EV to EBITDA

15.02

EV to Capital Employed

3.64

EV to Sales

1.44

PEG Ratio

1.13

Dividend Yield

0.36%

ROCE (Latest)

13.06%

ROE (Latest)

10.16%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

PBT LESS OI(Q)

At Rs 1,451.33 cr has Grown at 56.42%

PAT(Q)

At Rs 1,032.05 cr has Grown at 70.1%

DEBT-EQUITY RATIO(HY)

Lowest at 0.47 times

NET SALES(Q)

Highest at Rs 35,243.77 cr

-2What is not working for the Company

INTEREST(Latest six months)

At Rs 930.73 cr has Grown at 27.92%

Loading Valuation Snapshot...

Here's what is working for Samvardh. Mothe.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1,451.33 cr has Grown at 56.42%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 1,032.05 cr has Grown at 70.1%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 35,243.77 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.47 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Samvardh. Mothe.

Interest - Latest six months

At Rs 930.73 cr has Grown at 27.92%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)