MOTHERSON - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.9

📊 Core Financial Analysis

Profitability & Returns

PAT Qtr: ₹1,050 Cr vs ₹879 Cr — strong absolute profit, though Qtr Profit Var shows -23.4%, indicating prior volatility.

EPS: ₹3.60 — modest, but consistent with sector norms.

ROE: 12.5% & ROCE: 13.9% — solid returns, showing efficient capital deployment.

Debt & Leverage

Debt-to-Equity: 0.49 — moderate and manageable, especially for a global auto ancillary player.

Dividend Yield: 0.55% — low but steady, typical of a growth-oriented industrial.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 28.4 Slightly below industry PE of 31.2 — fairly valued

P/B Ratio ~3.12 Reasonable given ROE and growth outlook

PEG Ratio 0.46 Attractive — implies undervalued growth

Intrinsic Value ~₹110–₹120 Current price is near fair value, with upside potential if growth sustains

🏢 Business Model & Competitive Edge

Global auto component manufacturer with diversified exposure across geographies and OEMs.

Strong presence in wiring harnesses, mirrors, polymer parts, and now expanding into EV components.

Competitive advantage lies in scale, integration, and client relationships with top global automakers.

Recent restructuring and acquisitions have streamlined operations, improving profitability.

📉 Technical & Sentiment Indicators

RSI: 53.0 — neutral zone, no strong momentum.

MACD: 0.01 — flat, indicating consolidation.

Volume below average — suggests accumulation phase.

DMA 50 & 200 near current price — stable technical base.

FII holding up, DII slightly down — mixed institutional sentiment.

🧠 Investment Guidance

🔍 Entry Zone (If Undervalued)

Ideal Buy Range: ₹95–₹100

Near DMA support and below intrinsic value.

Offers a good entry for long-term accumulation.

📈 Long-Term Holding View

Strong candidate for long-term holding

Global footprint and EV exposure.

Improving margins and capital efficiency.

PEG ratio supports growth thesis.

Would you like a peer comparison with Bharat Forge or Bosch to evaluate positioning within the auto ancillary space?

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