Samvardhana Motherson International (NSE:MOTHERSON) Return-on-Tangible-Equity: 18.91% (As of Mar. 2026) — 17% Above Median

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NSE:MOTHERSON Samvardhana Motherson International Ltd NSE:MOTHERSON
81 GF Score
Price ₹143.65
GF Value ₹114.63
Valuation Modestly Overvalued
! 8 Warning Signs
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What is Samvardhana Motherson International Return-on-Tangible-Equity?

Samvardhana Motherson International NSE:MOTHERSON +1.08% 81 Return-on-Tangible-Equity is 18.91% as of Mar. 2026, which is 17% above its 10-year median of 16.22. GuruFocus rates NSE:MOTHERSON with a GF Score™ of 81/100 and a GF Value™ of ₹114.63 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,283 Vehicles & Parts companies, Samvardhana Motherson International ranks better than 69.68% on this metric.

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Samvardhana Motherson International's annualized net income for the quarter that ended in Mar. 2026 was ₹59,886 Mil. Samvardhana Motherson International's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹316,697 Mil. Therefore, Samvardhana Motherson International's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 18.91%.

The historical rank and industry rank for Samvardhana Motherson International's Return-on-Tangible-Equity or its related term are showing as below:

NSE:MOTHERSON' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.24   Med: 16.22   Max: 37.43
Current: 13.48

During the past 13 years, Samvardhana Motherson International's highest Return-on-Tangible-Equity was 37.43%. The lowest was 7.24%. And the median was 16.22%.

NSE:MOTHERSON's Return-on-Tangible-Equity is ranked better than
69.68% of 1283 companies
in the Vehicles & Parts industry
Industry Median: 7.47 vs NSE:MOTHERSON: 13.48

Samvardhana Motherson International  (NSE:MOTHERSON) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Samvardhana Motherson International Return-on-Tangible-Equity Related Terms


Samvardhana Motherson International Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Samvardhana Motherson International's Return-on-Tangible-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Samvardhana Motherson International Return-on-Tangible-Equity Chart

Samvardhana Motherson International Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.24 9.04 15.30 17.14 13.34

Samvardhana Motherson International Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.05 7.82 11.78 14.58 18.91

NSE:MOTHERSON vs ORLY, AZO: Return-on-Tangible-Equity Comparison

For the Auto Parts subindustry, Samvardhana Motherson International's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Samvardhana Motherson International Return-on-Tangible-Equity vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Samvardhana Motherson International's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Samvardhana Motherson International's Return-on-Tangible-Equity falls into.


NSE:MOTHERSON
81GF Score
Samvardhana Motherson International Ltd NSE:MOTHERSON
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Samvardhana Motherson International Return-on-Tangible-Equity Calculation

Samvardhana Motherson International's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=38597/( (261807+316697 )/ 2 )
=38597/289252
=13.34 %

Samvardhana Motherson International's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=59885.6/( (0+316697)/ 1 )
=59885.6/316697
=18.91 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2026) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 18.91% mean?
Samvardhana Motherson International (NSE:MOTHERSON) has a Return-on-Tangible-Equity of 18.91% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Samvardhana Motherson International and its competitors. This is 17% above median its historical median of 16.22. Over the past decade, Samvardhana Motherson International's Return-on-Tangible-Equity has ranged from 7.24 to 37.43. According to the industry distribution chart, Samvardhana Motherson International ranks #389 out of 1283 companies in the Vehicles & Parts industry, placing it in the top 30.3%.
Is Samvardhana Motherson International's Return-on-Tangible-Equity too high?
Samvardhana Motherson International's current Return-on-Tangible-Equity of 18.91% is 17% above median its 10-year median of 16.22. Over the past 10 years, this metric has ranged from a low of 7.24 to a high of 37.43. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.47. Samvardhana Motherson International's value of 18.91% is 153.1% above this industry median. Based on the distribution chart, Samvardhana Motherson International ranks #389 out of 1283 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Samvardhana Motherson International has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Samvardhana Motherson International's Return-on-Tangible-Equity compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Samvardhana Motherson International ranks #389 out of 1283 companies for Return-on-Tangible-Equity. This puts Samvardhana Motherson International in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.47. Samvardhana Motherson International's value of 18.91% is 153.1% above this benchmark. Historically, Samvardhana Motherson International's own Return-on-Tangible-Equity has ranged from 7.24 to 37.43 over the past decade. While the company's 10-year median is 16.22 vs. the industry median of 7.47, Samvardhana Motherson International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.47, based on 1,283 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Samvardhana Motherson International's current Return-on-Tangible-Equity of 18.91% is 153.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Samvardhana Motherson International and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Samvardhana Motherson International's current Return-on-Tangible-Equity is 18.91%, which is 17% above median its own 10-year median of 16.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Samvardhana Motherson International stock overvalued right now?
Based on GuruFocus' analysis, Samvardhana Motherson International (NSE:MOTHERSON) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹114.63, compared to a current price of ₹143.65 — trading 25.3% above its estimated fair value. The current Return-on-Tangible-Equity is 18.91%, which is 17% above median its 10-year median of 16.22 and 153.1% above the Vehicles & Parts industry median of 7.47. Samvardhana Motherson International's overall GF Score™ is 81/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Samvardhana Motherson International (NSE:MOTHERSON), the current Return-on-Tangible-Equity is 18.91% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Samvardhana Motherson International (NSE:MOTHERSON) Overvalued in 2026?

Based on GuruFocus' analysis, Samvardhana Motherson International stock appears to be overvalued. The current stock price of ₹143.65 is trading 25.3% above its estimated GF Value™ of ₹114.63. GuruFocus considers Samvardhana Motherson International to be Modestly Overvalued.

Key valuation signals for NSE:MOTHERSON:

  • Return-on-Tangible-Equity: 18.91% (17% above median its 10-year median of 16.22)
  • GF Value™: ₹114.63 vs. price of ₹143.65 (25.3% above fair value)
  • GF Score™: 81/100 with 8 warning signs
  • Industry Position: 153.1% above the Vehicles & Parts median (#389 of 1283)

No single metric tells the full story. See the NSE:MOTHERSON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Samvardhana Motherson International Business Description

Other Exchanges 517334:India
Address Noida-Greater Noida Expressway, 11th Floor, Plot No. 1, Sector-127, Noida, UP, IND, 201301
Samvardhana Motherson International Ltd is a manufacturer of automotive wiring harnesses and plastic components and modules. The products include wiring harnesses, mirrors for passenger cars, injection molded products, modules including dashboards, door trims, bumpers, blow moulded components, liquid silicone rubber molded components, injection molding tools, extruded rubber products, precision machined metal components, and others. The company has five reportable segments such as Wiring Harness, Modules and polymer products, Integrated Assemblies, Vision systems and Emerging businesses. It derives majority of the revenue from Modules and polymer products segment which is engaged in manufacturing and supplies of plastic parts and system modules for vehicle interiors and exteriors.
81GF Score

Get the complete analysis for NSE:MOTHERSON

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹143.65
Price
₹114.63
GF Value