Should I buy Motherson Sumi stock in 2025?
Is Motherson Sumi stock a buy right now?
Samvardhana Motherson International Limited (Motherson Sumi), a prominent force in India's auto ancillary sector, is currently trading at approximately ₹147.64 on the NSE with an average daily volume of 12.23 million shares. This active participation underscores robust investor interest, especially as the company maintains a strong growth trajectory despite global automotive headwinds. In recent quarters, Motherson Sumi has reported a 7.89% YoY revenue increase and an impressive 61.97% net profit surge, demonstrating its ability to outperform sector trends. Strategic moves—including acquisitions of Atsumitec and Baldi Auto, and new joint ventures with Japanese partners—position the company for further diversification and innovation. Initiatives such as expansion into the aerospace sector and new greenfield projects strengthen long-term growth prospects. Market sentiment is generally constructive, supported by resilient financials, global reach, and vertical integration, and is further bolstered by fundamental stability over cyclical industry volatility. Sectorally, Motherson Sumi's integration across auto, aerospace, and emerging fields aligns well with evolving transport trends. Based on the consensus of over 32 national and international banks, the medium-term price target is set near ₹192, reflecting optimism in both the company’s fundamentals and its ability to capture new opportunities.
- ✅Consistent revenue and profit growth outperforming industry averages.
- ✅Globally diversified operations across 40+ countries, limiting geographic risk.
- ✅New strategic acquisitions and JVs drive innovation and portfolio expansion.
- ✅Strong balance sheet with low net debt to EBITDA ratio of 0.9x.
- ✅Positioned for future opportunities through expansion into aerospace and non-auto sectors.
- ❌Moderate exposure to cyclicality in global automotive production volumes.
- ❌Relatively low dividend yield at 0.54% may not appeal to income-focused investors.
- ✅Consistent revenue and profit growth outperforming industry averages.
- ✅Globally diversified operations across 40+ countries, limiting geographic risk.
- ✅New strategic acquisitions and JVs drive innovation and portfolio expansion.
- ✅Strong balance sheet with low net debt to EBITDA ratio of 0.9x.
- ✅Positioned for future opportunities through expansion into aerospace and non-auto sectors.
Is Motherson Sumi stock a buy right now?
- ✅Consistent revenue and profit growth outperforming industry averages.
- ✅Globally diversified operations across 40+ countries, limiting geographic risk.
- ✅New strategic acquisitions and JVs drive innovation and portfolio expansion.
- ✅Strong balance sheet with low net debt to EBITDA ratio of 0.9x.
- ✅Positioned for future opportunities through expansion into aerospace and non-auto sectors.
- ❌Moderate exposure to cyclicality in global automotive production volumes.
- ❌Relatively low dividend yield at 0.54% may not appeal to income-focused investors.
- ✅Consistent revenue and profit growth outperforming industry averages.
- ✅Globally diversified operations across 40+ countries, limiting geographic risk.
- ✅New strategic acquisitions and JVs drive innovation and portfolio expansion.
- ✅Strong balance sheet with low net debt to EBITDA ratio of 0.9x.
- ✅Positioned for future opportunities through expansion into aerospace and non-auto sectors.
- What is Motherson Sumi?
- How much is Motherson Sumi stock?
- Our full analysis on Motherson Sumi stock
- How to buy Motherson Sumi stock in IN?
- Our 7 tips for buying Motherson Sumi stock
- The latest news about Motherson Sumi
- FAQ
- FAQ
What is Motherson Sumi?
Indicator | Value | Analysis |
---|---|---|
🏳️ Nationality | India | Leading Indian multinational in auto components, strong global footprint across 40+ countries. |
💼 Market | NSE (National Stock Exchange of India) | Listed on India's primary stock exchange, ensuring high liquidity and broad investor access. |
🏛️ ISIN code | INE775A01035 | Unique ISIN for global trading and transparent identification of the stock. |
👤 CEO | Vivek Chaand Sehgal | Founder-led leadership with strong industry experience drives sustained growth and expansions. |
🏢 Market cap | ₹103,883 crores (~$12.5 billion) | Large-cap status reflects significant market share, global reach, and investor confidence. |
📈 Revenue | ₹27,666 crores (Q3 FY25); est. ₹100,000+ crores FY25 | Revenue growth of ~8% YoY signals demand resilience and successful diversification. |
💹 EBITDA | ₹2,686 crores (Q3 FY25); margin ~10% | Stable EBITDA margin supports healthy cash flow and ongoing investment in growth initiatives. |
📊 P/E Ratio (Price/Earnings) | 25.19 | Attractive valuation vs. sector avg; potential for rerating if growth momentum sustains. |
How much is Motherson Sumi stock?
The price of Motherson Sumi stock is rising this week. Currently trading at ₹147.64, the stock gained 0.41% (+₹0.60) in the last 24 hours and is up 1.78% for the week.
With a market capitalization of ₹1,03,883 crores, the average trading volume over the past 3 months stands at 12.23 million shares.
Metric | Value |
---|---|
Price-to-Earnings (P/E) ratio | 25.19 |
Dividend yield | 0.54% |
Beta | 1.52 |
The stock’s beta of 1.52 indicates higher volatility compared to the broader market. Investors should note the dynamic nature of the stock, offering both growth opportunities and increased price swings.
Check out the best brokers in India!Compare brokersOur full analysis on Motherson Sumi stock
Having thoroughly reviewed Motherson Sumi’s (Samvardhana Motherson International Limited) latest financial disclosures and analyzed the stock’s three-year performance trajectory, our proprietary screening—integrating quantitative financials, chart signals, competitive benchmarking, and market analytics—yields a multilayered assessment. In a sector that continues to see transformative change, Motherson Sumi stands out as a highly resilient and fundamentally sound player. So, why might Motherson Sumi stock once again become a strategic entry point into the global auto and transport technologies sector in 2025?
Recent Performance and Market Context
Motherson Sumi has posted a meaningful rebound from its lows, with the stock currently priced at ₹147.64, registering a month-on-month appreciation of 13.86% and an annual gain of 13.61%. Over a three-year horizon, the return stands at a compelling +83.93%, comfortably outperforming many sector peers. This price action is set against a backdrop of continued volatility across global auto ancillaries; nevertheless, Motherson Sumi’s diversified business activities and robust earnings profile have provided a cushion.
Recent positive events cement the company’s forward momentum:
- Strong Q3 FY25 earnings with net profit surging nearly 62% YoY to ₹984 crores.
- Successful completion of strategic acquisitions (Atsumitec and Baldi Auto) and new joint ventures with Sanko and Matsui (both of Japan), which will enhance both vertical integration and process automation capabilities.
- Expansion as a Tier-1 supplier to Airbus, solidifying Motherson’s position beyond core automotive into high-value aerospace.
- Commencement of 14 greenfield projects, with near-term capacity coming online, fortifying long-term growth.
- Continued improvement in leverage and liquidity, with net debt to EBITDA declining to 0.9x.
On the macroeconomic front, while global automotive production faced setbacks, diversification across geographies and entry into non-auto adjacencies have insulated Motherson Sumi from singular regional dependencies. EV and hybrid vehicle penetration, a critical secular theme, continues to rise—a tailwind for companies with adaptive technology bases.
Technical Analysis
From a technical vantage point, the setup on Motherson Sumi looks increasingly constructive:
- Momentum Indicators: The RSI (14) stands at 63.36—bullish, but not near overbought territory, suggesting further room to run. The MACD (12,26,9) registers a positive 1.40, flashing a clear bullish signal, while the Stochastic oscillator also leans bullish at 64.96.
- Moving Averages: The current price sits above the 5-day, 20-day, 50-day, and 100-day SMAs, underscoring robust short- and medium-term momentum. The only lag—trading just below the 200-day SMA (₹161.56)—highlights the opportunity for the stock to reclaim and potentially break out above a long-term ceiling.
- Support and Resistance: Immediate supports at ₹146.24 and ₹144.83 have held firm on recent pullbacks, while resistance at ₹149.52 and ₹151.39 beckons as achievable upside targets.
- Price Structure: The confluence of indicators points to an emerging bullish structure—supported by sustained accumulation and absence of exhaustion in buying interest—potentially setting the stage for a renewed medium-term uptrend.
Fundamental Analysis
Fundamentals remain the cornerstone of Motherson Sumi’s positive outlook:
- Growth Trajectory: Q3 FY25 revenue grew by 7.89% YoY to ₹27,666 crores, backed by segmental diversity. Net profit advanced 61.97% YoY, translating into an EPS (TTM) of ₹5.86, a notable 46.2% increase.
- Operating Leverage: EBITDA of ₹2,686 crores (10% margin) is testament to ongoing operational optimization, while net debt to EBITDA has dropped to an enviable 0.9x ratio.
- Valuation: On a trailing P/E of 25.19, the stock trades well below the sector average (102.8), underscoring relative undervaluation. With a price-to-book of 4.0 and reasonable PEG, the earnings multiple seems justified by growth prospects.
- Balance Sheet Strength: Gross debt remains manageable, liquidity robust at ₹9,103 crores, and the debt-to-equity ratio stands at a prudent 0.66.
- Structural Strengths: From a strategic standpoint, Motherson Sumi’s scale, vertical integration, global reach (operations in 40+ countries), and best-in-class customer relationships position it as a category leader equipped for industry inflection points—be it in automotive, aerospace, or new mobility technologies.
Volume and Liquidity
- Trading Volume: Daily average volumes of 12.23 million shares illustrate significant institutional and retail interest, reinforcing confidence in both price discovery and exit flexibility.
- Liquidity Metrics: Ample liquidity aids valuation dynamism and cushions against market-wide shocks, enabling efficient entry and rebalancing for investors.
Catalysts and Positive Outlook
Motherson Sumi’s forward prospects are buoyed by tangible and high-impact catalysts:
- Acquisitions & JVs: Integration of Atsumitec and Baldi Auto, plus new Japanese joint ventures, will deliver revenue synergies and technology enhancements in advanced packaging and process improvement.
- Aerospace Foray: Expansion as a Tier-1 supplier to Airbus commercial aircraft signifies a strategic leap beyond automotive, opening up new, less cyclical end-markets.
- Greenfield Expansions: Commissioning of six new plants over the next two quarters will drive incremental revenue and scale benefits.
- Operational Excellence: Continued cost discipline and process automation offer further margin expansion.
- ESG and Electrification: Enhanced focus on sustainable practices, lightweighting, and electrification aligns Motherson Sumi with both regulatory and customer preferences—key themes driving auto ancillary outperformance.
- Sector Tailwinds: Rising EV/hybrid adoption, trend towards premiumization and intelligent electronics, and the shift of global OEM supply chains towards reliable, diverse partners all support a favorable outlook.
Investment Strategies
Investors can consider the stock across multiple time horizons, taking advantage of both technical and fundamental tailwinds:
- Short-Term: With the current price just above major support and all key oscillators signaling bullish momentum, traders can look for upside moves towards ₹149.50–₹152.80 in the short run—especially if the price breaks above the 200-day SMA, which could trigger additional momentum buying.
- Medium-Term: Forthcoming catalysts—commissioning of new plants, closing of strategic deals, further financial deleveraging—point toward continued re-rating for the stock across the next 6–12 months.
- Long-Term: For investors with a multi-year view, Motherson Sumi’s combination of innovation, global diversification, and structural financial improvement underpins the case for sustained compounding, particularly as the company further expands into less-cyclical adjacencies like aerospace, healthcare, and logistics.
Optimal positioning may be achieved by accumulating near current levels, as the stock has recently rebounded from strong technical support and lies well below last year’s highs, offering an attractive risk-reward setup ahead of key operational milestones.
Is it the Right Time to Buy Motherson Sumi?
Motherson Sumi’s investment narrative is built on an impressive foundation: robust financial delivery, sector outperformance, prudent balance sheet management, and adaptability to industry megatrends. Recent technical signals, favorable trading volumes, and a valuation well below the sector norm add conviction that the stock may be entering a new bullish phase.
With diverse revenue streams, deepening global integration, and bold strategic moves—alongside upcoming catalysts in both core and emerging businesses—Motherson Sumi seems to represent an excellent opportunity for investors seeking exposure to India’s rising role in the world’s auto and transport supply chain. The fundamentals, momentum, and growth pipeline justify a renewed, constructive perspective, and the current price structure suggests the timing is particularly favorable for strategic portfolio entry.
For those attuned to both the transformation of mobility and the value of operational discipline, Motherson Sumi offers a window into the next phase of Indian industrial leadership—underscoring why the stock deserves serious attention as a future-facing investment opportunity.
How to buy Motherson Sumi stock in IN?
Buying Motherson Sumi stock online is easier and more secure than ever before, thanks to regulated brokers accredited by Indian authorities. As a retail investor, you can invest directly in shares (“spot buying”) or trade short-term movements using Contracts for Difference (CFDs)—each method suits different goals and risk appetites. The whole process can be completed swiftly using your smartphone or laptop, with safety measures like KYC verification to protect your interests. Not sure which approach or platform is right for you? Read on for a detailed comparison of spot buying and CFD trading methods, and find our broker comparison tool further down the page.
Spot Buying
A cash purchase (also known as spot buying) means you buy actual shares of Motherson Sumi (Samvardhana Motherson International Ltd.) on the National Stock Exchange (NSE), becoming a direct shareholder. This classic approach is ideal for investors aiming for long-term growth, dividends, and voting rights. Most brokers charge a fixed commission per order, usually between ₹10 and ₹25, alongside small regulatory fees and GST.
Example
Suppose the Motherson Sumi share price is ₹147.64 and you wish to invest ₹83,000 (approximately $1,000 USD). You can buy about 562 shares (₹83,000 ÷ ₹147.64 ≈ 562), accounting for a brokerage fee of ₹400 (~$5).
✔️ If the share price rises by 10%: your shares become worth ₹91,300.
Result: +₹8,300 gross gain (≈$100), i.e. +10% on your investment.
Trading via CFD
CFD trading (Contracts for Difference) allows you to speculate on price changes in Motherson Sumi without owning underlying shares. CFDs are popular for short-term strategies, as you can profit from both rising and falling prices, and use leverage to amplify gains (and risks). With CFDs, fees mainly comprise the spread (difference between buy and sell prices) and overnight financing charges if positions are kept open beyond market hours.
Example
You open a CFD position worth ₹83,000 (~$1,000), and the broker offers 5x leverage—giving you ₹415,000 exposure to Motherson Sumi.
✔️ If the stock climbs by 8%: your position gains 8% × 5 = 40%.
Result: +₹33,200 (≈$400) gain on a ₹83,000 bet (excluding spreads and overnight fees).
Final Advice
Before you start investing, it’s important to compare brokerage platforms for their fees, tools, and investor protection measures. Each broker can have unique pricing and features that can impact your returns, whether you prefer cash shares or CFD trading. Ultimately, your choice should depend on your investment goals, risk tolerance, and time horizon. For a tailored overview, check out our broker comparison lower on this page to help you move forward confidently.
Check out the best brokers in India!Compare brokersOur 7 tips for buying Motherson Sumi stock
Step | Specific tip for Motherson Sumi |
---|---|
Analyze the market | Assess factors influencing Motherson Sumi, such as global auto sector trends, EV adoption, and its recent acquisition moves. |
Choose the right trading platform | Opt for a SEBI-registered Indian trading platform offering NSE access with competitive brokerage to trade Motherson Sumi safely. |
Define your investment budget | Allocate capital considering Motherson Sumi’s higher volatility (beta 1.52) and diversify within your portfolio. |
Choose a strategy (short or long term) | Motherson Sumi’s growth prospects and expansion favour a long-term approach, but watch for short-term technical opportunities. |
Monitor news and financial results | Track quarterly earnings, new project launches, JV announcements, and global auto production updates for timely decisions. |
Use risk management tools | Set stop-loss and target levels due to sector cyclicality; consider SIPs to average your purchase price over time. |
Sell at the right time | Book profits near key resistance levels or after sharp rallies, and review your position if fundamental or sector shifts occur. |
The latest news about Motherson Sumi
Motherson Sumi has reported strong financial performance for Q3 FY2024-25, with net profit up 61.97% YoY. In its latest results released within the last week, the company announced a substantial YoY rise in net profit to ₹984.35 crores and reported revenue growth of 7.89% to ₹27,666 crores. This strong bottom-line expansion was supported by improved margins, with EBITDA at ₹2,686 crores and a healthy 10% margin. The sustained growth in core segments, especially Modules and Polymer Products—which delivered double-digit growth despite macro challenges—highlights the resilience and adaptability of Motherson’s business model, which is particularly constructive for its Indian investor base.
The stock has experienced a notable price momentum, rising 13.86% over the past month and almost 2% in the last week. Recent trading data indicates renewed investor interest and positive sentiment: the share price has stayed above its 5, 20, 50, and 100-day simple moving averages, and technical indicators such as the RSI (14) at 63.36 and bullish MACD reinforce the upward trend. Despite global industry softness, this market momentum—supported by robust Indian market volumes averaging 12.23 million shares daily—signals confidence in the company’s strategies and outlook among local investors, with the price currently showing potential upside from being 31.96% below its 52-week high.
Motherson Sumi has bolstered its diversification and growth prospects through two strategic acquisitions and new joint ventures this quarter. The company officially completed the acquisitions of Atsumitec and Baldi Auto, in moves designed to broaden product offerings and enhance vertical integration within auto components. Additionally, Motherson has established new JVs with Japanese firms Sanko and Matsui, strengthening its capability in packaging and process automation—both of which are strategic, non-cyclical areas that support resilience amid automotive sector volatility. Such expansions are expected to support long-term growth and further secure Motherson’s already strong relationships with major OEMs operating in India.
Balance sheet strength has materially improved, with net debt-to-EBITDA dropping to 0.9x and liquidity increasing to ₹9,103 crores. This reduction in leverage, as disclosed in the latest quarterly report, highlights prudent capital management and risk mitigation. The company has also revised its FY25 capital expenditure guidance downward by ₹500 crores to ₹4,500 crores (+/-5%), indicating a focus on efficiency and cash flow preservation while continuing to invest in greenfield projects—six of which are set to commence operations in the next two quarters. Such measures appeal to financial analysts concerned with debt coverage and long-term sustainability in the often volatile auto ancillaries sector.
Motherson Sumi's ongoing expansion into aerospace and electronics is adding non-automotive growth drivers to its portfolio. Most recently, Motherson has achieved Tier-1 supplier status for Airbus commercial aircraft, expanding from its previous Tier-1 positions with Airbus helicopters and space programs. The company’s increased presence in non-automotive segments not only buffers against traditional automotive cycles but also opens up additional revenue streams in high-growth industries. For Indian investors and analysts, this marks a positive diversification strategy that could elevate returns and reduce risk amid ongoing transitions in the global mobility sector.
FAQ
FAQ
What is the latest dividend for Motherson Sumi stock?
Motherson Sumi currently pays a dividend, with the latest dividend yield standing at approximately 0.54%. The most recent dividend payment was ₹0.80 per share, distributed in August 2024. While the dividend yield is modest, the company has maintained a consistent payout history, reflecting its stable financial position. Investors may notice dividends are relatively low, as the company focuses on reinvestment for growth and expansion.
What is the forecast for Motherson Sumi stock in 2025, 2026, and 2027?
Based on the current share price of ₹147.64, the projected prices are ₹192 for end of 2025, ₹221 for end of 2026, and ₹295 for end of 2027. This outlook is supported by Motherson Sumi’s strong fundamentals, ongoing expansion in aerospace and new business verticals, and resilient performance in a challenging auto sector. The company’s diversified model and recently announced acquisitions may provide additional upside potential.
Should I sell my Motherson Sumi shares?
Holding on to Motherson Sumi shares may be advantageous, as the company shows robust growth prospects and strategic resilience. The stock remains reasonably valued with a price-to-earnings ratio below the sector average and a solid track record of profitability. Motherson Sumi’s diversified global presence and focus on operational efficiency support its mid- to long-term outlook. Given the positive technical and financial fundamentals, holding may be appropriate for investors seeking growth exposure in the auto ancillaries sector.
How are dividends and capital gains from Motherson Sumi taxed for Indian investors?
For Indian residents, dividends received from Motherson Sumi are tax-free in the hands of shareholders, but are subject to a 10% Tax Deducted at Source (TDS) if the total dividends exceed ₹5,000 in a financial year. Capital gains are taxed at 15% (short-term, held ≤12 months) or 10% (long-term, held >12 months) if gains exceed ₹1 lakh in a year. Motherson Sumi shares are fully eligible under these tax provisions since they are listed on Indian stock exchanges.
What is the latest dividend for Motherson Sumi stock?
Motherson Sumi currently pays a dividend, with the latest dividend yield standing at approximately 0.54%. The most recent dividend payment was ₹0.80 per share, distributed in August 2024. While the dividend yield is modest, the company has maintained a consistent payout history, reflecting its stable financial position. Investors may notice dividends are relatively low, as the company focuses on reinvestment for growth and expansion.
What is the forecast for Motherson Sumi stock in 2025, 2026, and 2027?
Based on the current share price of ₹147.64, the projected prices are ₹192 for end of 2025, ₹221 for end of 2026, and ₹295 for end of 2027. This outlook is supported by Motherson Sumi’s strong fundamentals, ongoing expansion in aerospace and new business verticals, and resilient performance in a challenging auto sector. The company’s diversified model and recently announced acquisitions may provide additional upside potential.
Should I sell my Motherson Sumi shares?
Holding on to Motherson Sumi shares may be advantageous, as the company shows robust growth prospects and strategic resilience. The stock remains reasonably valued with a price-to-earnings ratio below the sector average and a solid track record of profitability. Motherson Sumi’s diversified global presence and focus on operational efficiency support its mid- to long-term outlook. Given the positive technical and financial fundamentals, holding may be appropriate for investors seeking growth exposure in the auto ancillaries sector.
How are dividends and capital gains from Motherson Sumi taxed for Indian investors?
For Indian residents, dividends received from Motherson Sumi are tax-free in the hands of shareholders, but are subject to a 10% Tax Deducted at Source (TDS) if the total dividends exceed ₹5,000 in a financial year. Capital gains are taxed at 15% (short-term, held ≤12 months) or 10% (long-term, held >12 months) if gains exceed ₹1 lakh in a year. Motherson Sumi shares are fully eligible under these tax provisions since they are listed on Indian stock exchanges.