Today, the stock of Samvardhana Motherson International, a company that makes car parts, jumped by 9% to reach Rs 142.15 on the Bombay Stock Exchange (BSE). This increase comes after U.S. President Donald Trump announced he would delay a 25% tax on goods from Canada and Mexico. This decision is important for Samvardhana Motherson because Mexico is a major contributor to its revenues.
Over 80% of the company’s earnings come from exports and operations outside India. The business mainly focuses on producing modules, polymer products, wiring harnesses, vision systems, and other assemblies.
Trump mentioned that while these tariffs could hurt U.S. consumers in the short term, they are necessary to manage issues like immigration and drug trafficking, as well as to support local industries. However, he decided to pause the tariffs for 30 days to allow for discussions on border security and crime cooperation with Mexico and Canada.
Additionally, Samvardhana Motherson announced a new partnership with a Japanese company, Hamakyorex, which may also have boosted investor confidence.
When looking at the stock’s performance over the past year, it has grown by 20.08%. However, it has lost 10.43% since the beginning of this year. In the last month, the shares are down by 13.12%, and in the last three and six months, they have dropped by 24.90% and 28.08%, respectively.
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