In 2025, the stock market has been nothing short of a rollercoaster ride. The year began on a shaky note—headlines were grim, stocks were slipping, and portfolios were bleeding red.
Investor sentiment took a knock as uncertainty around both global and local events made everyone uneasy, with many expecting the market turbulence to drag on for a while.
But as the months rolled on, the tide slowly began to turn. The broader markets clawed back their losses and are now up nearly 6% year to date, reigniting hope among investors.
Amid this recovery, a select few stocks have not only bounced back but have outperformed the market by a wide margin, hitting fresh 52-week high or even all-time highs.
And one stock that’s turned heads with its performance is SML Isuzu.
About SML Isuzu
The company is in the business of manufacturing and selling commercial vehicles and their parts.
It has more than 40 years of experience in producing light and medium commercial vehicles to meet the Indian customer’s needs.
It was the first company in India to manufacture and supply state-of-the-art fully built buses, ambulances, and customised vehicles. Japanese firms, Sumitomo Corporation and Isuzu Motors, hold 44% and 15% shareholding in the company, respectively.
The company’s products include buses, trucks, and special applications. Its bus products include S7 school bus, executive LX school bus, Hiroi school bus, and others.
Its truck products includes Sartaj 5252 diesel, Sartaj GS 59 diesel, Sartaj HG 72 diesel, and more.
Its special application vehicles include police vans, ambulances, prison vans, water tankers, etc.
The export business includes both fully built units (CBUs) and completely knocked down (CKD) units, with a focus on staff buses, school buses, and trucks. It has established a presence in countries like Nepal, Bangladesh, Bhutan, Sri Lanka, Ghana, and Tanzania.
SML Isuzu in 2025
In 2025, SML Isuzu caught the markets off guard. The stock, which had previously been overlooked, has now unexpectedly become one of the year’s top performers. The company’s shares have more than doubled in value in just one month, rising by over 130%, resulting in multibagger returns in record time.
The stock reached a new 52-week high of Rs 4,239.7 intraday on July 24, 2025.
The share price of SML Isuzu has risen by a staggering 179% since the start of 2025, easily surpassing benchmark indices and the majority of its auto industry competitors.
What’s fuelling This Rally?
#1 Robust Quarterly Result
For the June 2025 quarter, the company reported a 13.4% YoY rise in revenue at Rs 8.5 billion (bn). This came in against Rs 7.5 bn a year back.
The company reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 1.1 bn in the June 2025 quarter. This was 15% higher than Rs 0.8 bn reported a year back.
Further, the net profit for the quarter came in at Rs 670 m, up 44% from Rs 460 m a year back.
#2 Open offer
SML Isuzu has become the talk of the town ever since Mahindra & Mahindra (M&M) announced its plans to acquire a majority stake in the company a little over two months ago.
Under the deal, M&M will acquire a 43.96% stake (63.62 lakh shares) from Japanese promoter Sumitomo Corp., and another 15% (21.71 lakh shares) from Isuzu Motors at Rs 650 per share. This brings the total 58.96% stake purchase to Rs 5,546.3 million (m).
In line with regulatory requirements, M&M has also launched an open offer to acquire an additional 26% stake (37.62 lakh shares) from public shareholders—but at a significantly higher price of Rs 1,554.6 per share.
This massive gap between the initial promoter deal price and the open offer price has been a major trigger for the stock’s sharp rally in recent weeks.
What’s driving Mahindra’s move?
In the 2–3.5 tonne pick-up market, M&M is already well-represented. Conversely, SML Isuzu serves the 6.5–9.5 tonne commercial vehicle market. M&M will instantly double its market share to 6% in the intermediate commercial vehicle (ICV) category as a result of this acquisition.
The company’s long-term strategic push in the CV space is demonstrated by its plans to increase its share to 10–12% by FY31 and then to over 20% by FY36.
Is a price revision likely in M&M’s open offer?
As things stand, M&M is not required to change the price of its open offer.
However, a lot of public shareholders might decide not to take part in the tender because the stock is trading much higher than the Rs 1,554.6 offer price. As a result, M&M would be able to take control while purchasing a smaller share.
The stock price of SML Isuzu has experienced significant growth due to this pricing dynamic and strategic alignment with M&M’s long-term objectives.
What next for SML Isuzu?
SML Isuzu is entering a new phase of expansion and change. The company recently opened a new dealership in Ranchi. This step aligns with its comprehensive strategy of strengthening its nationwide presence and improving sales engagement.
On the innovation front, SML Isuzu marked his entry with the launch of Hiroi EV Manch for commercial buses for Hiroi EV Manch in January 2025. The company is making itself a position to tap in the increasing demand for permanent mobility.
While Diesel and CNG dominate the CV segment, the government -led EV is expected to intensify the change towards electric buses with increasing environmental awareness and increasing environmental awareness.
Looking ahead, the company is aligning its growth strategy with India’s economic goals. With infrastructure spending on the rise, the commercial vehicle industry is poised for robust growth.
SML Isuzu aims to strengthen its presence in the 5–12 tonne segment by improving fuel efficiency, product quality, and customer-centric offerings.
Additionally, by expanding its dealer and service network and focusing on customised solutions, SML Isuzu plans to capture a larger market share in both domestic and select export regions.
Conclusion
SML Isuzu has seen a stellar run in 2025, delivering nearly 170% returns year-to-date and hitting fresh 52-week highs.
The policy backdrop is also turning more supportive. Along with budget incentives and manufacturing-linked schemes, the government is giving a big push to electric vehicles through tax breaks and state-level incentives like registration fee waivers and EV adoption targets.
As cleaner mobility becomes more of a priority, demand for EV buses and light commercial vehicles is likely to grow. SML Isuzu seems well-placed to ride this wave.
That said, given the recent sharp run-up, investors should exercise caution, track future developments closely, and always do their own research before making any investment decisions.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy Investing.
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