Samvardhana Motherson shares jump 5% to hit record high; gain 13% in 4-day winning streak

The stock opened on a firm note and rallied further 5.99% to hit a record high of ₹185.08 per share on the NSE. More than 3.53 crore shares of the company changed hands on the bourse.

Shares of the auto components maker have been on the rise since June 12 and have gained around 13% in the four consecutive sessions. Shares have rallied by 124% in the past year from its 52-week low level of ₹81 per share hit on June 20, 2023.

In 2024 so far, the stock has given returns of more than 71% so far.

Shares of the company have seen a sharp rally following rating agency Moody’s upgrdaing the ratings on the company to Baa3 Stable/Investment Grade. Moody’s also assigned a stable outlook on the company, according to a June 8 filing by the company.

“The ratings action is based on the sound financial strategy and risk management reflected with the well diversified business model with enhanced size and scale and stronger financial metrics and well executed acquisitions strategy and meaningful contribution from recently integrated acquisitions,” the filing said.

Moody’s also highlighted improvements in SAMIL's business profile with diversification planks playing out and profitability following recent acquisitions and free cash flow generation despite capital spending.

SAMIL reported a two-fold jump in consolidated net profit to ₹1,444 crore for the March quarter of FY24 compared to ₹699 crore in the January-March period of FY23.

Total revenue from operations jumped to ₹27,058 crore in the last quarter of FY24 compared to ₹22,517 crore in the March quarter of FY23.

For the full FY24 fiscal, net profit rose to ₹3,020 crore compared to ₹1,670 crore in FY23. Total revenue from operations jumped to ₹98,692 crore in FY24 from ₹78,788 crore in FY23.

Shares of Samvardhana Motherson International Ltd were trading 3% higher at ₹179.85 apiece on the NSE at 2:50 pm.