'Buy' Samvardhana Motherson To Get An Upside Of 20% Says Yes Securities, Sees Strong Growth Across Verticals

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

Samvardhana Motherson International Ltd. is all set for another year of outperformance on the back of-

1. revenue diversification aimed at accelerating incremental growth from high volumes markets like India, Mexico, Japan and China (~35% of topline),

2. successful integration of recent acquisitions, SOP for consumer electronics and Aerospace ramp up, Japanese supplier network breakthroughs beyond Honda (Yachio + Ichikoh + Atsumitec) and

3. growing contribution from emerging verticals (lightings, aerospace and consumer electronics).

The ongoing tariff issue may trigger a near-term slowdown in a few key geographies but the same to be navigated through new program launches. We build in revenue/Ebitda/PAT CAGR of 10-14%.

It currently trades at 25.5x/20.9x FY26E/FY27E consolidated EPS. We reiterate a Buy with revised target price of Rs 118, valuing the company at 24x Mar’27E earnings per share.

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.