Samvardhana Motherson shares rise 4% on Vision 2030 plan; upside left?

Samvardhana Motherson International (SAMIL) has impressed Dalal Street with its ambitious 'Vision 2030' strategy, aimed at transforming the auto ancillary giant into a diversified global powerhouse

Samvardhana Motherson share price today

Samvardhana Motherson International's (SAMIL's) 'Vision 2030' growth strategy has received a thumbs up from analysts on Dalal Street. 

Calling the auto ancillary company's five-year roadmap "bold, transformative, and aggressive”, analysts believe Samvardhana's impressive track record shall help it preserve return ratios and lead to value accretion for investors.

  From an investment view point, they maintained a 'Buy' rating on the stock with a share price target of up to ₹120.

  On the bourses, Samvardhana Motherson share price rallied 3.5 per cent to an intraday high of ₹97.96 per share. By comparison, the BSE Sensex index was up 0.15 per cent at 10:31 AM.

 

Make smarter market moves with The Smart Investor. Daily insights on buzzing stocks and actionable information to guide your investment decisions delivered to your inbox.

Subscribe

 

What is Samvardhana's 'Vision 2030' strategy?

Unveiling its five-year growth strategy at its Annual Investor Day 2025, Samvardhana Motherson reiterated its group-level revenue and return on capital employed (RoCE) targets of $108 billion and 40 per cent, respectively, for FY30.

  For this, SAMIL plans to deepen its penetration with American, Chinese, Japanese, and Korean original equipment manufacturers (OEMs), as against the current focus on European and Indian OEMs, by offering multiple existing products, while also expanding into new ones.

  The company also aims to move closer to full car assembly which, as per analysts, could gain traction as OEMs look to fast-track the launch of electric vehicles (EV) with shorter product cycles.

  That apart, Samvardhama aims to make non-auto verticals key growth drivers under 'Vision 2030', with revenue contribution rising from 5 per cent in FY25 to 25–30 per cent by FY30, led by strong growth across medical, aerospace, consumer electronics, and semiconductor manufacturing equipment.

  By FY30, aspirational vertical mix is 75:25 for auto:non-auto where auto segment will be the core business, but non-auto segments will be major growth drivers.

  "M&A will also play an important role in achieving these targets, given the opportunities available,” the management said.

  Notably, over the past five year, Samvardhana Motherson has outpaced the auto industry with 2.5x growth. Its Ebit (earnings before interest and tax) surged 3x, net profit 5x, and RoCE 2x during the period. The company also strengthened its balance sheet with lower leverage despite heavy investments.

 

Samvardhana's diversified portfolio

Samvardhana has built one of India's fastest growing aerospace businesses, scaling to $250 million revenue, becoming a tier-1 supplier to Airbus and Boeing, and the only Indian exporter to Japan, backed by over $1 billion orderbook.

  It forayed into consumer electronics segment with a global brand entrusting it to develop the consumer electronics ecosystem in India (mega greenfield operational from Q3FY27) – positioning SAMIL 3-5 years ahead of competition in India's nascent electronics industry. 

 

Samvardhana Motherson stock strategy

Nomura | Buy | Share price target: ₹116

According to Nomura, SAMIL grew its revenues by ~1.6x to $10 billion over FY15-20 and ~2.5x to ~$25 billion over FY20-25. Hence, the company's current target of 4x increase over FY25-30 looks rather aggressive. It estimates around $28 billion in gross group revenue by FY28, and $21 billion for FY25, assuming a USD/INR exchange rate of 85/$. 

"The company has a track record of taking risks without undermining shareholder returns, which leads us to believe that prioritising RoCE over revenues should contribute to value accretion. The stock currently trades at 17.7x FY27F EPS, which is attractive, given the outlook,” Nomura said.

 

Emkay Global Financial Services | Buy | ₹120

India is the third biggest aviation market globally, despite having a low per-capita penetration. Even a partial conversion of train passengers into air travellers could multiply demand for planes by 4x. 

In this backdrop, SAMIL has built credibility as a tier-1/tier-2 aerospace supplier with strong execution, aligning well with the capability requirements and long-cycle nature of aerospace.

  "The company applies its auto DNA of addressing customer pain-points, disciplined execution, and willingness to invest upfront without compromising on safety or specifications. This customer-subservient model is a differentiator, as most overseas suppliers lack similar discipline and delivery reliability,” the brokerage said.

 

Nuvama Institutional Equities | Buy | ₹110

Nuvama believes there can be upside to the management's revenue target as it is exploring multiple inorganic opportunities across the auto and non-auto segments. The current revenue target of $108 billion implies a ~33 per cent CAGR. 

Diversification efforts into emerging segments (auto and non-auto categories), it added, is gaining momentum, with the business delivering a stellar 41 per cent growth in FY25, driven by successful acquisitions/tie-ups (Irillic, Cirma, AD Industries, BIEL, etc) and the scale up of aerospace and consumer electronics businesses.

  "Going forward, acquisition of Atsumitec and capacity addition across lighting and electronics, precision metals, consumer electronics, and aerospace, is expected to further accelerate growth. We expect emerging business revenue CAGR at 23 per cent over FY25-28,” Nuvama said.

 

Motilal Oswal Financial Services | Buy | ₹114

Motilal Oswal expects Samvardhana Motherson to continue to outperform global automobile sales, fuelled by rising premiumisation, and EV transition, a robust order backlog in autos and non- autos, and successful integration of recent acquisitions. 

"While the ongoing tariff issue may lead to some near-term slowdown in some of its key geographies, we expect SAMIL to be the least impacted by these tariffs as it has all its facilities close to its customers and can effectively realign supplies as per customer needs,” it said.