Samvardhana Motherson International Limited (MOTHERSON.NS) fair value
Consumer Cyclical · Auto Parts · NSE · India
₹151.67-1.92%
Market cap ₹1.61TNext earnings 2026-11-05Updated Oct 25, 2026 · valuation updating
Our verdict
No fair value
We are missing the financial data our models need for this company. It will appear once the data arrives.
Not valued: there are no financial statements on file yet.
ACCE opinionSamvardhana Motherson International Limited (MOTHERSON.NS)
Fair value
Not available
ACCE price target
₹153
Rating
Not rated
Horizon
12 months
ACCE price target published on 22 Oct 2026, 16:00 CEST.
Price used: ₹152 at the close on 23 Oct 2026, 12:00 CEST.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
72
out of 100
P/E
37.2x
forward 21.8x
1-year return
+41.3%
Dividend yield
0.33%
Samvardhana Motherson International Limited in four questions
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Overview
ACCE thesis
Samvardhana Motherson makes wiring harnesses, mirrors, interior modules and polymer components for global automakers, and it has built its position by supplying nearly every major OEM across Europe, North America and Asia. Its moat is the breadth of its customer contracts and the switching costs embedded in multi-year platform awards, which lock in volumes for the life of a vehicle model. Revenue growth of 16.6% is running well ahead of what most global auto suppliers manage, and the forward P/E of 22.2 against a trailing 37.3 implies the market expects earnings to grow sharply as the company digests recent acquisitions and margins improve. The 5.0% operating margin against a 43.8% gross margin is the number to scrutinise: the gap between them is wide, so the investment case rests on whether scale and integration can convert top-line growth into durable operating leverage. This is a company worth a deeper look for the margin question alone.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
Earnings miss on latest quarter
Q2 2026 EPS came in 5.2% below expectations, even though trailing earnings grew 104.2% year on year. Momentum is strong but the latest print fell short.
moderate
Thin operating margin
Operating margin is 5.0% and net margin 3.4% against a 43.8% gross margin, so most of the gross profit is absorbed by costs. Small swings in cost could move earnings sharply.
moderate
Valuation rich on trailing basis
Trailing P/E is 37.2 against a forward P/E of 21.8, a gap that depends on earnings growth continuing. Shares trade 0.9% below the ACCE price target of ₹153.00, so the margin of safety is small.
AI research notes
AI-assisted·How I use AIWritten Oct 24, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 16.6% year over year in the June 2026 interim report, showing the business is expanding quickly.
Analysts' mean price target of INR 174.95 sits 15.4% above the current share price, implying upside in their view.
On forward earnings the stock trades at 21.8 times, well below its 37.2 times trailing multiple, suggesting profits are expected to grow.
Why it could disappoint
Net margin was only 3.4%, so most revenue growth is not turning into profit for shareholders.
The latest quarter's earnings per share missed expectations by 5.2%, with 0.98 reported against 1.03 expected.
The trailing price to earnings ratio of 37.2 times is expensive, leaving little room for disappointment.
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