Dividend stock Samvardhana Motherson share price jumps 16% from 52-week low. Should you buy before record date?

Dividend stocks to buy: Samvardhana Motherson share price movement is expected to remain under the bulls’ radar as the auto major has declared an interim dividend of 50% to the eligible shareholders. Samvardhan Motherson also fixed the dividend record date on 28 March 2025, i.e. on Friday next week. Hence, those who hold Samvardhana Motherson shares on 27 March 2025 after the market close will be eligible for the payment of ₹0.50 per share interim dividend. One of the dividend stocks in India, Samvardhana Motherson share price, recently hit a 52-week low of ₹113.10 apiece on the NSE. However, the dividend stock bounced back strongly in the recent stock market rally and finished at ₹131.20 per share on Friday last week, logging around 16% rise from the 52-week low.

According to stock market experts, Samvardhana Motherson share price declined from its 52-week high of 216.99 to around ₹113 per share levels due to falling EPS and sales. They said that Donald Trump’s tariff flare also did some damage to Samvardhana Motherson share price during the recent stock market crash, which took place in February 2025. However, they said that Samvardhana Motherson share price is in oversold zone, and it has limited downside possibility, especially after the trend reversal in the Indian stock market. They advised investors to initiate momentum buying in Samvardhana Motherson shares for the short-term target of ₹160.

Samvardhana Motherson share price outlook

Speaking on the outlook of Samvardhana Motherson share price, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, “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.”

Speaking on the recent route in Samvardhana Motherson share price, Mahesh M Ojha, AVP — Research at Hensex Securuities, said, “Samvardhana Motherson share price witnessed strogn selling pressure in the recent stock market crash in Februray 2025 due to the US President Donald Trump’s tariff rant. However, the Indian market is coming out of this fear and hence, a trend reversal in this dividend stock can’t denied.”

Is this a stock to buy?

“Samvardhana Motherson share price is now in deeply oversold territory, suggesting a potential technical rebound. With key support around ₹120, a bounce toward ₹150 looks likely in the short term. Investors should watch for volume spikes and improving fundamentals as confirmation before entering fresh positions. Short-term traders may find opportunities in this potential recovery play,” said Anshul Jain.

Advising investors to initiate momentum buying in Samvardhana Motherson shares, Mahesh M Ojha said, “The dividend stock is looking positive on the technical chart. One can initiate momentum buying in Samvardhana Motherson shares in ₹130 to ₹132 per share range for the short term targets of ₹145 and ₹160. However, one must maintain stop loss at ₹124.”

On suggestion to existing Samvardhana Motherson shareholders, Mahesh M Ojha of Hensex Securities, said, “Shareholders of Samvardhana Motherson can hold the scrip for ₹145 and ₹160 per share targets maintaining stop loss at ₹124.”

Samvardhana Motherson dividend history

This is Samvardhana Motherson’s first interim dividend announcement in FY25. Before this, the dividend stock traded ex-dividend on 14 August 2024 to finalise the list of beneficiary shareholders and pay a final dividend of ₹0.80 per share.

In Q3FY25, the company reported a topline increase of 7.66%, while its profit surged by 62.12% year-on-year, reaching ₹878.63 crore with revenue totalling ₹27665.92 crore. However, revenue saw a slight decline of 0.52% compared to the previous quarter, while profit decreased marginally by 0.13%. The company’s selling, general, and administrative expenses rose by 3.39% quarter-on-quarter and increased by 17.33% year-on-year.

The company’s operating income was up by 16.98% quarter-on-quarter and 16.35% year-on-year, indicating a strong operational performance. The earnings per share (EPS) for Q3 stood at ₹1.25, reflecting a significant increase of 56.25% year-on-year.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.