Samvardhana Motherson’s stock target rise up to Rs 180. Should you buy, sell or hold?

The company’s total revenue from operations also rose to Rs 27,058 crore for the period under review as compared to Rs 22,517 crore in the last quarter of FY23.

The shares of Samvardhana Motherson International were trading nearly 1% higher today on BSE at Rs 148 around 10 am.

Here is what analysts have to say about the company’s performance:

JM Financial

“Over the medium-to-long term, we expect premiumisation and electrification to drive content per vehicle for SAMIL’s powertrain-agnostic product portfolio. Recent acquisitions have started reflecting favorably on overall performance and the company indicated a strong pipeline going forward,” stated a JM Financial report.

JM Financial has maintained a ‘buy’ rating on the stock with a target price of Rs 180.

Motilal Oswal

Given its well-diversified presence across components, geographies, and customers, Samvardhana Motherson International is emerging as the key beneficiary of the growing popularity of EVs and the rising trend of premiumization across segments. This is evident in a significant ramp-up in its order book, with its booked business scaling up to USD83.9b.

Motilal Oswal has retained a ‘buy’ view on the stock with a target price of Rs 170.

Nuvama

“We are constructive on SAMIL’s prospects on the back of its strong management capabilities, pending order book and increasing content per vehicle due to premiumisation/ electrification. We are building in a revenue/EBITDA CAGR of 12%/22% over FY24–26E,” said Nuvama in its report.

Nuvama reiterated a ‘buy’ rating with a target price of Rs 170 on the stock.

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Nomura

Global brokerage firm Nomura stated that strong earnings growth is likely to continue for the company, driven by the integration of acquisitions and cost optimization. Operating leverage and cost pass-through should support margins. In Nomura’s opinion, there could be an upside to growth in the non-auto businesses, which account for 70% of the greenfield capex (Rs 1,400 crore), but are not accounted for fully in earnings now.

Nomura has a ‘buy’ view on the stock with a target price of Rs 165.

Kotak Institutional Equities

KIE believes that the company continues to execute well, despite geopolitical tensions and wage pressures and is well-poised to benefit over the medium

term from an increase in content per vehicle in PV, driven by M&As and premiumization, strong relationship with OEMs, and consolidation of suppliers.

Kotak Equities has an ‘add’ rating on the stock with a target price of Rs 160.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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