Shares of Samvardhana Motherson surged over 4% to ₹158.60 on the BSE on Friday after the company reported a robust 20% year-on-year (YoY) increase in net profit for Q4 FY25 and announced a 1:2 bonus share issue.
The leading auto components manufacturer posted a net profit of ₹1,050.5 crore for the March quarter, up from ₹878.63 crore in Q4 FY24. Revenue from operations rose 6% YoY to ₹29,316.83 crore, compared to ₹27,665.92 crore in the same quarter last year.
In a boost to shareholder returns, the company’s board recommended a 1:2 bonus issue—entitling shareholders to one bonus share for every two shares held—pending approval at the upcoming general meeting.
In addition, the board proposed a final dividend of ₹0.35 per equity share for FY25. The record date for dividend eligibility is June 23, and payment is expected on or before September 26, subject to shareholder approval.
The board also cleared a plan to raise up to ₹8,500 crore via the private placement of rated, listed, unsecured, redeemable non-convertible debentures (NCDs).
For the full fiscal year ending March 31, 2025, Samvardhana Motherson reported an impressive 40% YoY jump in net profit to ₹3,803.02 crore. Annual revenue grew over 15% to ₹1.14 lakh crore, while EBITDA climbed 17% YoY to ₹10,877 crore.
“Our performance reflects the resilience and adaptability of our business model,” said Vivek Chaand Sehgal, Chairman. “With strong engineering and manufacturing capabilities, we are well-positioned for sustainable long-term growth. Our booked business value of over $88 billion, including non-automotive ventures, lays a strong foundation for the future.”
Sehgal further noted that FY25 marked a record-breaking year with the company achieving its highest-ever sales, successfully executing 23 acquisitions, expanding into new industries, and winning multiple global quality awards, all while maintaining a sharp focus on free cash flow and lowering leverage.
Outlook and Analyst Sentiment
According to Trendlyne, the average target price for Samvardhana Motherson stands at ₹158, indicating a modest upside of about 3%. Among the 23 analysts covering the stock, the consensus rating remains a ‘Buy’.
