Motherson Share Price Surges After Bonus Issue Announcement: Detailed Analysis
Motherson shares rose sharply after the company announced a 1:5 bonus issue. Here is a detailed analysis of Motherson share price trends, fundamentals, and future outlook.
Table of Contents
Introduction
Samvardhana Motherson International Limited (Motherson) witnessed a significant jump in its share price after announcing a bonus issue in the ratio of 1:5 on July 18, 2025. The auto components giant’s stock has been in focus this week as investors cheer its growth trajectory, bonus issue benefits, and robust long-term prospects despite market volatility.
In this article, we analyse the Motherson share price movement, bonus issue details, financial fundamentals, recent performance, and what investors can expect going forward.
Motherson Share Price – Latest Updates
Current Market Price
Motherson Share Price (NSE): Rs 170.80 (up 3.5% intraday)
52-Week High: Rs 182
52-Week Low: Rs 87
The stock has nearly doubled from its yearly low, reflecting strong investor confidence.
Motherson Bonus Issue 2025 – Key Details
What is the Bonus Issue?
The board approved issuance of 1 bonus share for every 5 shares held (1:5 ratio) to reward shareholders and enhance liquidity.
Record Date
The record date to determine eligible shareholders will be announced soon.
Management Commentary
Motherson management stated:
“The bonus issue reflects our commitment to enhancing shareholder value and confidence in our future growth pipeline.”
Motherson Group Overview
About Samvardhana Motherson
Founded: 1986
Business: Leading global auto components manufacturer
Clients: Volkswagen, Daimler, BMW, Ford, Tata Motors, Maruti Suzuki
Segments: Wiring harnesses, mirrors, polymers, modules, metal components, IT services
Motherson Sumi Wiring India Ltd (MSWIL)
MSWIL, a demerged listed entity, focuses on wiring harness manufacturing and has shown consistent growth despite EV market disruptions.
Recent Financial Performance
Q4 FY25 Results
Revenue: Rs 27,350 crore (up 18% YoY)
Net Profit: Rs 1,050 crore (up 22% YoY)
EBITDA Margin: 8.2%
The company continues to expand its global footprint with strategic acquisitions, including the recent purchase of an interior and polymer components manufacturer in Europe.
Debt Reduction Strategy
Motherson has been focused on:
Reducing consolidated debt through operational cash flows
Strengthening its balance sheet for future M&A opportunities
Motherson Share Price – Technical Analysis
Support and Resistance
Immediate Support: Rs 162
Major Resistance: Rs 175 – Rs 182 range
If the stock sustains above Rs 175, analysts expect a breakout towards Rs 190-195 levels in the coming weeks.
Broker Recommendations
Motilal Oswal: BUY, Target Rs 210
ICICI Direct: HOLD, Target Rs 185
Axis Securities: BUY, Target Rs 200
Internal Links to Related Market and IPO News
For readers following Indian stock market and IPO news:
FAQ
What is the bonus issue ratio declared by Motherson?
Motherson has announced a 1:5 bonus issue, meaning shareholders will get 1 additional share for every 5 shares held.
Why did Motherson share price rise today?
The share price rose after the company announced its bonus issue, along with positive technical momentum and investor sentiment.
What is Motherson Sumi Wiring share price today?
Motherson Sumi Wiring India Ltd traded at Rs 68.50, gaining nearly 2% intraday.
Is Motherson a good stock to buy?
Analysts remain positive citing strong earnings, global acquisitions, and rising order book, but advise tracking global auto demand trends before fresh investments.
Helpful Resources
Conclusion
Motherson’s bonus issue has boosted market sentiment, rewarding shareholders while improving stock liquidity. With strong fundamentals, aggressive global expansion, and focused debt reduction, the company is well-positioned for sustainable growth. Investors must, however, watch broader market trends and auto sector recovery for optimal entry levels in coming sessions.
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