Samvardhana Motherson has unveiled a new five-year plan, targeting a gross revenue of $10.8 thousand crore by FY2030 and aiming to increase RoCE to 40%. Following this announcement, the company's shares surged by 4% to ₹98.59. Brokerage firms have issued 'buy' and 'overweight' ratings.
Samvardhana Motherson Shares: Samvardhana Motherson International has revealed a new five-year plan, setting a target of $10.8 thousand crore in gross revenue by FY2030 and doubling its Return on Capital Employed (RoCE) to 40%. Investors reacted positively to this plan, with the company's shares trading 4.22% higher on the BSE at ₹98.59. Global brokerage firms have assigned 'overweight' and 'buy' ratings, with target prices set between ₹105-117.
Recent Share Performance
On September 27, 2024, last year, the company's share reached an annual high of ₹144.74 on the BSE. However, in the following 9 months, it declined by approximately 50%, reaching ₹71.57 on April 7, 2025. Investors capitalized on the upward momentum following the announcement of the company's new five-year plan. This new strategy has bolstered market confidence in the company and generated enthusiasm among investors.
Company's New Five-Year Goals
Samvardhana Motherson's new five-year plan aims to achieve a gross revenue of $10.8 thousand crore by FY2030. This represents an almost four-fold increase from the $2.57 thousand crore revenue recorded in FY2025. Furthermore, the company intends to double its RoCE to 40%. The RoCE stood at 18% in FY2025.
The company also stated that the revenue share from any single country will be capped at 10%. The goal is to maintain a dividend payout ratio of up to 40%. The company expects that over 75% of the increased revenue will come from recently acquired entities. Additionally, the group plans to de-list companies that become self-sufficient on their own.
Strong Manufacturing, Investor Enthusiasm Persists
Global brokerage firm JPMorgan has maintained its 'overweight' rating on Samvardhana Motherson, setting a target price of ₹105. The firm notes that the company has quadrupled its sales over the last two five-year plans.
Jefferies has also issued a 'buy' rating with a target price of ₹110. The brokerage firm believes that the company's b manufacturing capabilities and a rapidly growing market will support its business.
Another brokerage firm, Incred, has assigned an 'add' rating with a target price of ₹117. However, the firm also cautioned that quadrupling sales over the next five years could be challenging.
Investor Excitement
The enthusiasm among investors is clearly visible following the unveiling of the new five-year plan. The company's robust strategy, focus on acquisitions, and plans for sustainable growth in the global market are attracting investors. This positive sentiment has also been reflected in the share price.
