Brokerages remain broadly positive on Samvardhana Motherson despite divided valuation opinions, highlighting growth in new segments, strategic acquisitions, and margin improvements shaping the outlook.
Brokerage sentiment around Samvardhana Motherson International Ltd. has remained broadly constructive after the company’s latest quarterly update, even as opinion on valuation has become more divided. Business Today reported that several brokerages have kept a positive stance on the stock, with targets ranging from ₹115 at Citi to ₹195 at ICICI Securities, while the consensus target of about ₹167.57 suggests only limited further upside from recent levels.
Nomura said it had expected a softer-than-consensus first quarter, but still found consolidated revenue and EBITDA margin broadly in line with its forecasts. The brokerage argued that revenue growth in FY27 through FY29 should outpace consensus as new plants ramp up and non-auto businesses, especially consumer electronics, gather pace. It also pointed to improving margins, stronger free cash flow yields and room for acquisition-led expansion, while maintaining its Buy call. Financial Express separately reported that Nomura recently lifted its target to ₹155 from ₹140 after a stronger fourth quarter, a healthier order book and strategic acquisitions.
Other analysts have also highlighted growth drivers beyond the core automotive business. Emkay Global said SAMIL’s outlook for FY27 looked solid, supported by demand recovery in commercial vehicles, a rising order book and the scaling up of consumer electronics, including a third mother plant due to start operations from the third quarter of FY27. Emkay also said the company has lifted capital expenditure plans for consumer electronics to ₹7,500 crore over 2 to 3 years and raised its target to ₹180 from ₹150. HDFC Securities said the stock’s medium- to long-term case remains intact because of expansion in newer segments, premiumisation, new customer wins and possible future acquisitions, while Nuvama Institutional Equities said structural margin improvement and inorganic growth could support earnings growth, with its revised target at ₹178.
The range of views reflects how sharply expectations have shifted in the past few months. Motilal Oswal has issued several Buy recommendations at different points, with targets including ₹129, ₹160 and ₹114 as it tracked changing conditions in global auto demand, premiumisation and the electric-vehicle transition. Emkay also previously set a ₹130 target, while another report said Nomura had earlier assigned ₹125 after the Nexans Auto wiring harness deal, citing possible earnings accretion from the acquisition. Among the more bullish calls, Jefferies and CLSA have both pointed to ₹190, Morgan Stanley has an Overweight rating with a ₹173 target and JPMorgan has a ₹170 target, underlining a market view that remains positive but far from uniform.
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