Motherson Sumi & Samvardhana Motherson begin ex‑bonus trading after a 1:2 bonus share issue. Shares hover near ₹154, with analyst targets up to ₹170. Technicals show mixed signals—get full insights here.
📈 Motherson Share Price Update
- Current Trading Price: Around ₹153.9–154.0 on NSE & BSE Simply Wall St+15GuruFocus+15INDmoney+15INDmoney+1The Economic Times+1
- Ex‑Bonus Action: Shares began trading ex‑bonus today (July 18), following the record date of July 17 The Economic Times+1The Economic Times+1.
🎁 Bonus Share Details
Both Motherson Sumi Wiring and Samvardhana Motherson International announced a 1:2 bonus issue (one bonus share for every two held).
- Record Date: July 18, 2025
- Ex‑Bonus Date: July 18, 2025 TipRanks+3The Economic Times+3The Economic Times+3.
- As a result, share prices adjusted proportionally from around ₹155 to ₹103 (theoretical ex-bonus basis) Stockopedia+15The Economic Times+15The Economic Times+15.
🔍 Technical Outlook
- EMA Signals:
- 5‑day EMA has given a bearish crossover
- But 10‑, 14‑, 20‑day EMA crossovers remain bullish The Economic Times+8INDmoney+8Investing.com+8.
- Heikin‑Ashi candles indicate short‑term selling pressure, though longer-term indicators remain constructive .
Broker & Analyst Views
- Consensus Rating: ‘Outperform’ from 23 analysts, indicating ~65% upside to average target of ₹169–170 Trendlyne.com+8TradingView+8MarketScreener India+8.
- Motilal Oswal: Buy rating with target ₹175 Trendlyne.com.
- ICICI Securities: Buy call, target ₹185 .
- JM Financial: Buy with target ₹170 INDmoney+6The Economic Times+6The Economic Times+6.
📊 Valuation & Fundamentals
- P/E Ratio: ~28.5× (slightly below market avg of 30×) .
- Growth Outlook:
- Earnings forecast to grow ~16–17% annually
- Revenue growth ~7.5%
- ROE ~13.6% over 3 years Simply Wall StSimply Wall St.
- 52-week range: ₹107.3–217.0 The Economic Times+15GuruFocus+15MarketScreener India+15.
🧠 Why Analysts Are Bullish
- Global diversified auto‑ancillaries business, with exposure to wiring harnesses, polymer modules, etc Yahoo Finance+4Moneycontrol+4The Economic Times+4.
- Healthy growth in recent quarters: Q1 FY25 saw ~29% YoY revenue rise and 65% PAT jump MarketScreener India+5GuruFocus+5GuruFocus+5.
- Strategic M&A such as acquisitions of PKC, Peguform, Yachiyo, and expansion into non‑auto verticals provide future growth catalysts .
Should You Buy, Hold, or Wait?
📉 Short-Term Traders
- Watch the ₹150–155 support zone
- A break above ₹160–165 could trigger short-term gains toward broker targets
🕰 Long-Term Investors
- Strong fundamentals, valuation below peers, and global diversification support a long-term view
- Analysts expect ₹170–185 upside (~15–20%) over 12 months
❓ FAQs
Q1. Can I still get bonus shares?
👉 No—July 17 was the last date. Buying today won’t qualify for bonus The Economic Times.
Q2. Why did price drop recently?
👉 Ex‑bonus adjustments and profit booking; technicals also show short-term weakness .
Q3. What’s the fair target?
👉 Broker average is ₹169–175 (upside ~12–15%) .
Q4. Is it undervalued?
👉 Yes—P/E below industry average, strong cash flow, and steady ROE .
Q5. What are the risks?
👉 Auto sector slowdown, forex fluctuations, and global supply chain disruptions.
🏁 Final Take
Motherson is at a critical juncture post-bonus. With strong global scale, diversified products, and attractive valuation, analysts remain optimistic, targeting ₹170–185. Short-term traders should monitor ₹150–155 support, while long-term investors may use dips to establish or add positions.
