auto
Samvardhana Motherson
MOTHERSON · Nifty 50
₹145.1
Price 2026-06-17
At a Glance
Fundamental
90/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Samvardhana Motherson scores 90/100 on fundamentals (strong). Samvardhana Motherson: BROAD EXPANSION regime.
Fundamental Score: 90/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 9.4% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 9.43% is modest efficiency-driven and stable. Net margin of 3.1% × asset turnover of 1.13x × leverage of 2.7x.
What This Means
Net margin of 3.1% means the company keeps ₹3.1 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 1.13x means the company efficiently uses its assets to generate revenue. Leverage of 2.7x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
45.7%
Operating
5.8%
Net
3.1%
Gross margin 45.7% → operating margin 5.8% → net margin 3.1%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
STRONGCash flow covers net income 2.9x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.
Debt Sustainability
COMFORTABLEInterest covered 4.5x — adequate buffer. Debt is manageable. Debt/EBITDA at 1.5x is low — balance sheet has capacity.
Free Cash Flow
STRONGFCF margin at 4.2% — moderate. Generating cash after investments.
Peer Comparison
Samvardhana Motherson is compared against 10 peers in the auto sector.
Key Watchpoints
Breaks above ₹152 (+5%)
Trend reversal confirmation
Breaks below ₹138 (-5%)
Further downside risk
Auto sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Special charges of ₹414K Cr. May indicate restructuring, impairment, or one-time costs.
Strong insider alignment. Promoters have significant skin in the game.
Company not overvalued on revenue basis.
⚠️ 1 critical + 1 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes