Automobile shares soar after acquiring 100% stake in Brazil-based company for $7.8 million
Monday’s trading session saw shares of one of the leading Auto Ancillaries stocks, which specializes in manufacturing a wide range of auto parts including wiring harnesses, polymer products and rear-view mirrors. Up to 2.7% after acquisition of Baldi Industria E Comercio Ltda.
price action
The market capitalization on Monday was 1,15,465 Crores; Samvardhana Motherson International Ltd It rose up to 2.7 per cent after hitting a high of Rs 168.50 against its previous close of Rs 164.12.
what’s going on
Samvardhana Motherson International Ltd has announced the acquisition of a 100% stake in Brazilian automotive supplier Baldi Industria E Comercio Ltda.
The agreement includes a cash payment of BRL 47 million (approximately USD 7.8 million) to acquire 100% ownership of the target company, with approximately BRL 17 million (approximately USD 2.8 million) retained to cover the seller’s potential indemnification obligations. It works. , the contract will last up to five years and the transaction is expected to be completed by the first quarter of 2026.
The acquisition will strengthen Samvardhana Motherson International Ltd’s operations in South America with a focus on vertical integration, cost optimization and product alignment with premium vehicle trends.
About us
Samvardhana Motherson International Limited (SAMIL) is a leading global automotive supplier headquartered in India. We specialize in manufacturing a variety of automotive components, including wiring harnesses, polymer products, and rearview mirrors.
We provide wrapping solutions and soft touch surfaces for door panels, IP, steering wheels and other interior components, manufacturing such as PVC, fabric cutting, sewing and packaging of door panels, armrests, IP pads, steering wheels and shift knobs, boots etc. Provides capabilities.
Samvardhana Motherson International Limited has a strong presence in over 40 countries and operates through several subsidiaries and joint ventures serving leading automotive OEMs across the world.
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Division wise financial performance (Q2FY24 Vs Q2FY25)
Samvardhana Motherson International Limited has seen positive growth across its business segments. The Wiring Harness division saw a 4% increase in sales from KRW 779.1 billion to KRW 811.1 billion, while the Modules and Polymer Products division saw a significant growth of 27%, with sales increasing from KRW 114.91 billion to KRW 1464 billion.
This was followed by the Vision Systems division, which recorded a slight 3% increase from KRW 468.9 billion to KRW 480.7 billion, while Integrated Assembly increased by Rs. 1,651~Rs. 2,528 and emerging business sectors grew. A 43% increase from 2,026 to 2,905.
finance
The company’s revenue grew 18.7 per cent from Rs 23,639 crore to Rs 28,071 crore in the second quarter of 2024-25. Meanwhile, net profit during the same period increased from 201.55 billion rupees to 879.74 billion rupees.
key financial ratios
Samvardhana Motherson International Limited has a return on equity (RoE) of 11.61% and a return on equity (RoCE) of 11.85%. Additionally, the company’s debt-to-equity ratio is 0.78.
Written by Sridhar
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