Auto Ancillary Stock in Focus After Its Subsidiary Buys 81% Stake in Tokyo-Listed Firm

Synopsis: Delivering a 32 percent compounded return over the past three years, Samvardhana Motherson International has completed its tender offer to acquire an 81 percent stake in Yutaka Giken, expanding its presence among Japanese OEM partners.

Samvardhana Motherson International is a major global automotive component manufacturer based in Noida, specializing in modules, wiring harnesses, and interior systems. The company has now successfully completed a strategic acquisition of an 81 percent stake in Japanese automotive manufacturer Yutaka Giken, aiming to strengthen its global partnership with Honda.

With a market cap of about Rs 1.3 lakh Cr, Samvardhana Motherson International Ltd saw its stock hit an intraday high of Rs 120, which is still less than 1 percent lower than the previous close of Rs 121, but the company’s stock has given a compounded return of 32 percent in the last three years.

News

Samvardhana Motherson International, via its subsidiary MGI B.V., has successfully completed its tender offer to acquire an 81 percent stake in Japan’s Yutaka Giken Co., Ltd. Following the March 10, 2026, completion, 1,408,867 shares will be purchased at JPY 3,024 each, with settlement scheduled for March 17, 2026.

The acquisition also secures an 11 percent stake in Shinnichi Kogyo Co., Ltd., a subsidiary majority-owned by Yutaka Giken. This strategic expansion follows necessary regulatory clearances across several international jurisdictions, including Japan, China, Brazil, Mexico, and the United States, fulfilling formal disclosure requirements under SEBI listing regulations for the company’s records.

The Target Company

Yutaka Giken Co., Ltd. is a Japanese multinational automotive components manufacturer, specializing in drive, exhaust, and braking systems. It operates as a primary supplier to Honda. While, Shinnichi Kogyo Co., Ltd., a specialist manufacturer of large-diameter thin-wall pipes, serves as a subsidiary to Yutaka Giken, which holds a majority stake.

Business & Financial Overview

Samvardhana Mothersonsumi Systems is engaged primarily in the manufacture and sale of components to automotive original equipment manufacturers. The company was incorporated  in 1986 and is headquartered in Noida. 

In the latest quarter, the company saw a YoY revenue growth of 14 percent, going from Rs 27,666 Cr in Q3FY25 to Rs 31,409 Cr in Q3FY26, while the QoQ revenue went up by 4 percent from Rs 30,173 Cr in Q2FY26. The YoY Net Profit growth is at 9 percent, going from Rs 984 Cr in Q3FY25 to Rs 1,072 Cr in Q3FY26, while the QoQ growth stood at 27 percent from Rs 846 Cr in Q2FY26.

The company has a 3 year sales CAGR of 21 percent, while the TTM is at 9 percent. The company’s 3 year profit CAGR is at 60 percent, while the TTM number is at a negative 15 percent. The company also has a ROCE of 14 percent and a ROE of 12 percent.

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