Samvardhana Motherson Q4 Review: ICICI Securities Maintains 'Buy' On Resilient Show Despite Adverse Macros

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ICICI Securities Report

Samvardhana Motherson International Ltd.’s Ebitdam at 9.0% was ~100bps below our estimate. Demand environment for light vehicles remains muted. However, SAMIL continues to outperform the underlying industry led by -

1. premiumisation / hybridisation led content growth and

2. cross-selling opportunities from recent acquisitions.

Non-automotive businesses (led by Consumer Electronics and Aerospace) are expected to continue their strong growth momentum.

Given the challenging macros, acquisition pipeline also remains healthy. We are building in revenue / Ebitda CAGR of 11%/17% over FY25–27E. Maintain Buy with target price of Rs 185 (earlier: Rs 160), based on 20x FY27E EPS (earlier: 18x).

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