'Buy' Samvardhana Motherson Shares Maintains Yes Securities On Robust Outlook; Sees Upto 16% Upside

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Yes Securities Report

Yes Securities reiterates 'Buy' call on Samvardhana Motherson International Ltd. and revises target price to Rs 139 (25x Mar’28 EPS).

Samvardhana Motherson’s recent stock outperformance, despite a volatile global macro backdrop, is led by resilient H1 FY26 marked by stable booked business and limited tariff impact as US pass-through discussions underway.

The outlook remains robust, supported by new program ramp-ups, increasing content, greenfield additions and accelerating non-auto contributions.

Margin momentum should improve further with operating leverage and a continuing turnaround in EUR operations. Non-auto segments, especially consumer electronics and aerospace— are scaling rapidly, backed by heavy capex, new plant ramp-ups.

Diversification across high-growth geographies such as India, Mexico, Japan, China, and broader Asia (now >50% of revenues) adds resilience, while core businesses across wiring harnesses, vision systems, and modules/polymers retain meaningful whitespace, aided by recent acquisitions including Dr. Schneider, Bolta US, Saddles, and Yachiyo.

The brokerage expects growth to accelerate in H2 FY26/FY27 as key levers such as diversification, acquisition, scale-up in CE and aerospace and deeper integration into Japanese OEMs playout. Hence builds revenue/Ebitda/PAT CAGR of 9.5–14%. with the stock trading at 23.8x/21.1x FY27/FY28 consolidated EPS.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.