The stock has corrected over the last few months given an uncertain demand macro in its key regions. However, strong Q3 performance demonstrates Samvardhana Motherson's business resilience and should allay investor concerns.
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Motilal Oswal Report
Samvardhana Motherson International Ltd.'s Q3 FY25 operational performance was in line with our estimates. Despite a tough global macro environment, the business remained resilient as margins improved 70 bp YoY. Factoring in weak demand in key regions, we have lowered our FY26E earnings per share by 15% and largely maintained our FY25E EPS.
The stock has corrected over the last few months given an uncertain demand macro in its key regions. However, strong Q3 performance demonstrates Samvardhana Motherson's business resilience and should allay investor concerns. After the correction, Samvardhana Motherson is attractively valued at 21.3x FY26E/18x FY27E consolidated EPS. Reiterate our Buy rating with a revised target price of Rs 160, based on 24x Dec'26E EPS.
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