Samvardhana Motherson Shares Fall 33% After Bonus Issue Record Date:
Should Investors Panic?
July 18,
2025 | FlipTheLoss Desk
Samvardhana Motherson International Ltd(SMIL), the global auto parts manufacturer, saw its shares tumble by 33% in today's trading session. The drop wasn't due to poor performance or market panic but rather due to the bonus share issue that came into effect today.
What Happened?
Today, July
18, 2025, was the record date
for SMIL's 1:2 bonus share
issue. That means shareholders who held the stock as of today will receive one bonus share for every two shares they own.
This is a common event in the stock market,
and typically, the stock price adjusts
downward to reflect the bonus issue. This is known as a price adjustment, not a crash.
As a result, Motherson shares fell to around ₹102.95, down 33% from the pre-bonus price.
Current Stock Status
·
Stock
Price: ₹102.95 (up 0.34% from previous close)
·
Market
Cap: ₹1.08 lakh crore
·
Bonus
Ratio: 1:2
·
Record
Date: July 18, 2025
·
Allotment
Date: July 21, 2025
· Trading of Bonus Shares Begins: July 22, 2025
Financial Snapshot
Despite the bonus issue adjustment, the company
remains fundamentally strong:
| Metric | Q4FY24 | Q4FY25 | Change |
|---|---|---|---|
| Revenue | ₹27,058 crore | ₹29,317 crore | +8% |
| Net Profit | ₹1,444 crore | ₹1,115 crore | -23% |
Revenue rose, but profit dipped due to increased investments and operational costs.
What's Driving Motherson Future?
Samvardhana Motherson is not just resting on
its legacy. Here's how it’s preparing for the future:
·
Greenfield
Projects: New plants for both automotive (PCBA) and non-auto (semiconductors).
·
Global
Expansion: Entering new geographies like the UAE.
·
Capex
Guidance FY26: ₹6,000 crore (50% for growth, 50% for regular
expansion).
·
Focus
on Non-Auto Sectors: 70% of future investment to be in non-auto businesses.
· EV & Non-Auto Bookings: Of the $88.1 billion booked orders, 24% from EVs and $2.7 billion from non-auto sectors.
Why the Drop Isn’t a Red Flag
Investors often get alarmed seeing a 30%+
drop. But in this case, it’s purely mathematical.
If you held 100 shares worth ₹150 each before the bonus, post bonus you now own
150 shares worth ₹100
eachyour total value remains nearly the same.
So, no real loss happened.
Should You Buy, Hold, or Sell?
If you're a long-term investor:
·
Hold:
Fundamentals remain strong.
· Buy More? This could be a good time if you believe in the company’s future growth in EVs, semiconductors, and global expansion.
Final Thoughts
The 33% fall in Samvardhana Motherson shareprice is not a crash,
but a bonus adjustment.
The company continues to show promise with expansion plans, strong bookings,
and a diversified business model.
If you’re an investor, don’t panic. Understand the reason behind the fall, and use this as an opportunity to reassess your portfolio.
FAQs (FAQ Schema Below)
Q1.
Why did Samvardhana Motherson shares fall by 33%?
Because of a 1:2 bonus issue stock price was adjusted accordingly, not due to
market panic.
Q2.
What is the record date for Motherson’s bonus shares?
July 18, 2025. Shareholders as of this date are eligible for the bonus.
Q3.
When will the bonus shares be credited?
They will be allotted on July 21 and become tradable from July 22, 2025.
Q4.
Is it a good time to buy Motherson shares?
If you believe in the company’s long-term growth, this drop could offer a good
entry point.
