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

Score

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.

Schaeffler India

Sona BLW Precis.

Bharat Forge

Endurance Tech

ZF Commercial

Tube Investments

Motherson Wiring

Bosch

Uno Minda

Exide Inds.

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 17.00% and Operating profit at 38.24%

Positive results in Mar 26

DEBT-EQUITY RATIO(HY) Lowest at 0.47 times
NET SALES(Q) Highest at Rs 34,309.31 cr
PBDIT(Q) Highest at Rs 3,790.79 cr.

With ROCE of 13.1, it has a Attractive valuation with a 3 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 39.38%, its profits have risen by 9.5% ; the PEG ratio of the company is 3.3

High Institutional Holdings at 33.58%

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.

39.38%

1.16

33.81%

Sensex

-6.84%

-0.53

12.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.00%

EBIT Growth (5y)

38.24%

EBIT to Interest (avg)

3.39

Debt to EBITDA (avg)

2.32

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

2.09

Tax Ratio

27.37%

Dividend Payout Ratio

15.73%

Pledged Shares

2.90%

Institutional Holding

33.58%

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

3.51

EV to EBIT

22.83

EV to EBITDA

12.98

EV to Capital Employed

2.98

EV to Sales

1.23

PEG Ratio

3.25

Dividend Yield

0.43%

ROCE (Latest)

13.06%

ROE (Latest)

10.16%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

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

18What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at 0.47 times

NET SALES(Q)

Highest at Rs 34,309.31 cr

PBDIT(Q)

Highest at Rs 3,790.79 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 11.05%

PBT LESS OI(Q)

Highest at Rs 2,126.36 cr.

PAT(Q)

Highest at Rs 1,649.73 cr.

EPS(Q)

Highest at Rs 1.42

-3What is not working for the Company

INTEREST(Q)

Highest at Rs 471.76 cr

Loading Valuation Snapshot...

Here's what is working for Samvardh. Mothe.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2,126.36 cr has Grown at 87.24%

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 1,649.73 cr has Grown at 57.0%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 34,309.31 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 3,790.79 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 11.05%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 2,126.36 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 1,649.73 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 1.42

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

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 - Quarterly

At Rs 471.76 cr has Grown at 38.32%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Interest - Quarterly

Highest at Rs 471.76 cr

in the last five quarters and Increased by 38.32 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)