SamvardhanaMotherson Stock Price Analysis and Quick Research Report. Is SamvardhanaMotherson an attractive stock to invest in?

The Indian Auto Industry comes in the top 5 largest auto industries of the world. India is also a prominent auto exporter and has strong export growth expectations for the near future. The support from the government is providing the auto companies with a boost needed in their development. But will it sustain?
We can look into more details and dig a little deeper into the analysis of the stock of this sector. Let’s look at how SamvardhanaMotherson is performing and if it is the right time to buy the stock of SamvardhanaMotherson with detailed analysis.

• The mainstream of revenue for Auto Sector is their sales, SamvardhanaMotherson has reported decent sales growth of 13.4622 % and in the latest quarter sales was Rs 2721.45 Cr. To judge whether the company’s inventory is being sold or not and the sales picture is true, inventory turnover ratio plays a major role, which is 9.1898 times for SamvardhanaMotherson . It is managing its inventory poorly .
   
• SamvardhanaMotherson reported Profit growth of 20.0891 % over the year, where the latest year profit is Rs 943.9 Cr compared to the previous year of Rs 786 Cr. The new permits by governments and increasing demand will lead to an increase in profits in the coming year.
   
• The operating profit of SamvardhanaMotherson in the latest quarter is Rs 345.76 Cr. It helps in measuring the company’s operating performance which is used to make financing decisions.
   
• SamvardhanaMotherson has a poor ROE of 2.9792 %. The ROE is an important financial parameter because Auto companies work with high equity investments. Also, they have to take huge debt to incur the research and manufacturing work so their Debt to Equity ratio should be evaluated. SamvardhanaMotherson has a low Debt to Equity ratio of 0.1368.
   
• SamvardhanaMotherson pays a dividend of 0.8 Rs per share. It tells us that a company likes to share profits with its shareholders. The dividend yield is low at 0.5519 %.
   
• The share of promoter in SamvardhanaMotherson is high at 58.13 %, where the pledging is 2.42 %.
   
• What the market is willing to pay for the company for its earnings can be determined by PE multiple. Current PE of SamvardhanaMotherson is 68.7176512582545 compared to the 5 year average PE of 116.903276011797 .
   
• Share Price: - The current share price of SamvardhanaMotherson is Rs 154.01. One can use valuation calculators of ticker to know if SamvardhanaMotherson share price is undervalued or overvalued.