Led by 30+ acquisitions over the last two decades, Motherson Group has expanded from a single-product / geography to a multi-product / geography auto components behemoth.
During this period, its revenue has grown at 30 per cent CAGR to $14 billion. The company has jumped global automotive supplier ranking from Top-40 in 2005 to Top-15 in 2023.
We believe analysing this company in the same manner as one analyses most other companies (basis quarterly order book movement, topline growth, etc.), may not be prudent. It is best viewed / analysed basis business growth over a period of time (1-3 years), and as an encompassing play in the global automotive space.
The company has a proven track record of turnarounds and expanding global market share (0.4 per cent in 2010 to 2.5 per cent in 2023). We believe, the group with its global presence, an expanding portfolio of powertrain-agnostic products and a wide customer base presents a multi-year growth opportunity.
SAMIL is our top pick in the space - our Sep’24 TP of ₹130. Given the long growth runway, we see a clear potential for SAMIL to deliver a three-year IRR of 25 per cent