Samvardhana Motherson International Ltd (SAMIL) has had a roller-coaster ride in the stock market lately, but it’s now making waves once again. The company, a key player in the auto components sector, reported a solid Q4 FY25 performance that has caught the attention of investors.
The share price rose by 4%, following a 20% jump in net profit and an increase in revenue. So, what’s driving this positive momentum, and is now the right time to invest?
Let’s take a closer look at what’s been happening with Samvardhana Motherson and what it means for the stock moving forward.
Also read: LIC Q4 results highlights
Strong Q4 FY25 performance
Samvardhana Motherson reported a net profit of ₹1,050.5 crore for Q4 FY25, marking a 20% increase from the ₹878.63 crore in the same quarter last year. This is a strong sign of recovery after a few challenging quarters. Along with this, revenue from operations grew by 6%, reaching ₹29,316.83 crore, compared to ₹27,665.92 crore in Q4 FY24.
However, while the overall numbers were impressive, EBITDA didn’t live up to expectations. The company reported an EBITDA of ₹2,640 crore, which was 10% lower compared to last year, marking a slight miss on the estimates. This was reflected in the EBITDA margin, which slipped by 70 basis points to 9%.
But despite these challenges, the company’s performance in Q4 FY25 shows that it’s on the right track. Investors were encouraged by the strong net profit and the growth in revenue. In fact, SAMIL shares rose by 4%, hitting ₹158.60 per share, on the back of this positive result.
Full-year performance
When we look at the full-year FY25 performance, it’s clear that Samvardhana Motherson has bounced back from the difficulties of previous years. Net profit for the entire year soared by 40%, reaching ₹3,803 crore, compared to ₹2,716 crore in FY24. The company also reported a 15% increase in revenue, totalling ₹1.14 lakh crore, up from ₹98,692 crore in the previous year.
The company’s EBITDA grew by 17%, reaching ₹10,877 crore, driven by solid sales and operational efficiency. However, it’s important to note that despite the overall positive figures, the Q4 performance did reveal some challenges, particularly in margins.
Here’s a quick breakdown of the full-year performance:
| Metric | FY24 (₹ Cr) | FY25 (₹ Cr) | YoY Change |
| Revenue | 98,692 | 1,14,000 | +15% |
| EBITDA | 9,297 | 10,877 | +17% |
| EBITDA Margin | 9.4% | 9.6% | +2% |
| Net Profit | 2,716 | 3,803 | +40% |
The growth in net profit and revenue over the year is a sign that Samvardhana Motherson is navigating through the rough patches and focusing on operational efficiency and product diversification.
You may also read:Â Brainbees Solutions Q4 FY25 results & share price analysis
Analyst recommendation
Following the strong Q4 FY25 results, analysts have been positive on the stock, but with mixed outlooks. Emkay Global raised its target price to ₹180, from ₹150, after reviewing the strong performance. They also maintained their buy recommendation, noting that Samvardhana Motherson’s expansion into consumer electronics could provide significant future growth.
Other brokerages, like Nomura and Jefferies, have also raised their targets, with Nomura setting a price target of ₹170 and Jefferies going for ₹180. While Nomura acknowledges some challenges with US tariffs, they remain optimistic about the company’s expansion into non-automotive sectors, such as electronics and medical devices.
Overall, the consensus among analysts remains positive, with most recommending a buy on the stock. That said, the stock has been volatile, so retail investors should be mindful of the potential risks that come with it.
You may also read: Hindustan Copper’s strong Q4 results
The bonus issue and dividend announcement
In addition to the Q4 performance, Samvardhana Motherson’s board announced a 1:2 bonus issue (1 share for every 2 held) and a final dividend of ₹0.35 per share. This is a good sign for investors, as it shows that the company is committed to rewarding its shareholders.Â
The bonus issue will increase the number of shares in circulation, but it’s an indication that the company believes it’s on a solid footing moving forward.
Bottom line
The key takeaway is that Samvardhana Motherson has shown a strong recovery in FY25, with impressive growth in both net profit and revenue. While EBITDA margins took a slight hit, the overall results were encouraging. The bonus issue and dividend announcement provide extra value to shareholders, and the positive outlook from analysts suggests that the company could continue to do well in the coming years.
However, investors should keep an eye on the challenges the company faces, such as margin pressure, tariff risks, and volatility in the auto market. For retail investors, Samvardhana Motherson looks like a solid long-term play, but always consider your risk tolerance and stay updated on future developments in the auto components and consumer electronics sectors.
