Samvardhana Motherson share price is down 2% intra-day today. This decline comes after several brokerages downgraded their target price for the automotive component giant. As the stock remains below its 52-week high of Rs 3,270.95, with a market capitalisation of Rs 3.37 lakh crore, let’s take a look at what is the brokerages say on Samvardhana Motherson stock:
Nuvama: Maintains Buy, target price reduced to Rs 166
According to the brokerage firm Nuvama, Samvardhana Motherson EBITDA in Q3FY25 earnings was in line with expectations. Although the company reported a slightly lower than expected revenue of Rs 27,670 crore, the company managed to keep its earnings in line due to better margins in its wiring harness and integrated assemblies segments.
As per the brokerage firm, the company’s revenue grew 8% YoY, majorly driven by its inorganic initiatives, which contributed Rs 22.4 billion. Furthermore, the brokerage is also optimistic about the company’s long term growth, with a projected 6% revenue CAGR for FY25-27. The report also noted the company’s management and efforts to increase its content per vehicle and tab into new markets though inorganic opportunities.
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Although a muted outlook for North America and Europe for FY26E, the brokerage has revised its earnings estimates slightly downward, cutting FY25E–FY27E EPS by 4-7%. However, the firm is still constructive on SAMIL’s prospects, with a ‘BUY’ rating and a revised target price of Rs 166, down from Rs 194 previously.
“We are constructive on SAMIL’s prospects on the back of strong
management capability, inorganic initiatives, pending order book and increasing content; reiterate ‘BUY’, with an SotP TP of INR166 (earlier INR194), implying a blended PE of 23x (26x earlier),” added the brokerage in its report.
Motilal Oswal: Maintains Buy, target price reduced to Rs 160
As per the brokerage, the company’s Q3FY25 operational performance is in line with estimates. Furthermore, it has lowered its FY26E EPS by 15%, it has largely maintained its FY25E EPS, noting that the company’s long-term prospects remain intact.
The brokerage believes that the company’s Q3 performance highlights SAMIL’s business resilience. The brokerage has reiterated its ‘BUY’ rating, with a revised target price of Rs 160, based on a valuation of 24x Dec’26E EPS.
“We expect MOTHERSO to continue to outperform global automobile sales,
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