Samvardhana Motherson Declares 50% Interim Dividend: Should You Buy?
Auto major Samvardhana Motherson has announced a 50% interim dividend for eligible shareholders, putting the stock under the bulls’ radar in the upcoming trading sessions. The company has set March 28, 2025, as the record date for the dividend, meaning investors holding shares on March 27, 2025, will be eligible for a dividend payment of ₹0.50 per share.
Recent Share Price Performance
Samvardhana Motherson’s stock recently hit a 52-week low of ₹113.10 on the NSE. However, it has since rebounded strongly, closing at ₹131.20 last Friday—a 16% recovery from its lowest point.
Despite this recovery, the stock had previously dropped significantly from its 52-week high of ₹216.99, largely due to declining EPS and sales figures. Additionally, market volatility caused by Donald Trump’s tariff policies further impacted the stock during the February 2025 market downturn.
Expert View: Is It a Good Buy?
According to stock market experts, Samvardhana Motherson’s share price is currently in an oversold zone, with limited downside risks. They believe the recent trend reversal in the Indian stock market could support further recovery.
Anshul Jain, Head of Research at Lakshmishree Investment and Securities, stated:
“Samvardhana Motherson share price has seen a sharp correction from around ₹220 to ₹115, driven by three consecutive quarters of EPS decline and two quarters of falling sales. The company’s growth trajectory is slowing, which is reflected in the stock price.”
However, experts suggest momentum buying for short-term investors, with a target price of ₹160.
Conclusion: Should You Invest?
With an attractive dividend yield and signs of a potential rebound, Samvardhana Motherson could be a short-term opportunity for investors. However, long-term growth concerns remain due to slowing earnings. Investors should carefully assess market conditions and their risk appetite before making a decision.
