Samvardhan Motherson Bonus Announcement:Here’s a comprehensive overview of Samvardhana Motherson International Ltd’s (SAMIL) upcoming bonus issue, current performance, and future outlook
🧾 Upcoming Bonus Share Issue-Samvardhan Motherson Bonus Announcement:
- Bonus Ratio & Purpose
SAMIL’s board has approved a 1:2 bonus share issue—one free equity share (face value ₹1) for every two shares held—to mark the Group’s 50th anniversary and reward shareholders - Key Details
- Number of shares: ~351.81 crore shares, valued at ₹351.81 crore, to be issued from the securities premium account
- Post-issue equity share capital will increase from ₹703.63 crore to ₹1,055.44 crore
- Record and exact credit/dispatch dates are pending; issuances expected by July 28, 2025, subject to postal ballot approval
- CCD Conversion Update
In accordance with SEBI guidelines, the minimum conversion price of ₹1,500 cr of compulsorily convertible debentures (CCDs) will be reset to ~₹126.67 post-bonus (from ₹190)
📊 Current Business Performance (FY25 & Q4 FY25 Highlights)
- Revenue & Profit Growth
- Q4 FY25 revenue reached ₹25,805–₹29,317 cr, up ~8–21% YoY; EBITDA rose ~13% to ₹2,053 cr; consolidated PAT was ₹654–₹1,115 cr (reported variances due to reporting metrics)
- FY25 net income jumped
40% YoY to ₹3,800 cr (₹38 bn) - Operating margin held steady at ~8–9% .
- Capital Allocation & Shareholder Returns
- Board recommended final dividend of ₹0.35/share, in addition to the interim ₹0.50/share, total ~₹0.85/share for FY25
- Q4 saw ~4–5% stock price rise post bonus/dividend announcement
- Capex & Diversification
- Plans to spend ₹6,000 cr in FY26 capex, with ~70% focused on non-automotive segments such as aerospace, electronics, and medical
- Credit Ratings & Outlook
- Fitch downgraded SAMIL’s outlook to Stable, expecting leveraged balance sheet amid global automotive headwinds; projected EBITDA margin ~8–8.5% for FY26–27 from ~9% in FY25
- ICRA flagged dependence on cyclicality in passenger vehicle markets
🔭 Future Outlook-Samvardhan Motherson Bonus Announcement:
- Book-to-Bill & Order Pipeline
SAMIL commands a strong total “booked business” portfolio of ~US $83.9 bn, with execution expected over the next 5–6 years - Growth Drivers
- Three-pronged strategy: Organic growth, M&A, and strategic alliances
- Diversification: Expansion into non-auto sectors, targeting longer-term revenue stability
- Global presence: Robust performance in Europe/North America and strong EV order pipeline
- Analyst Sentiment
- ICICI Securities maintains a Buy, raising its FY27 target to ₹185 (implying ~25% upside)
- Technical analysts point to strong long-term momentum, though stock currently trades below its 52-week high (
₹217), and above its recent low (₹107) . - Risks & Challenges
- Automotive cycle volatility and potential tariff disruptions in key markets .
- EBITDA margin pressure due to macro conditions and integration costs of M&A.
✅ Summary-Samvardhan Motherson Bonus Announcement:
SAMIL’s 1:2 bonus issue is a strategic gesture to reward shareholders on its 50th anniversary, backed by strong FY25 fundamentals: ~20% PAT growth, solid capex plans focused on diversification, and robust booked orders. Moody’s stresses a more cautious near-term margin outlook amid global headwinds.
However, with diversified end-markets, a healthy balance of organic and inorganic growth, and supportive analyst sentiment, SAMIL appears poised for sustainable long-term growth—albeit with typical cyclicality and margin scrutiny.
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