Engineering, manufacturing and assembly specialist Samvardhana Motherson International Ltd surprised market participants, prompting Jefferies to turn more optimistic on the auto component maker.
Brokerage Jefferies has maintained its buy rating on Samvardhana Motherson International Ltd and raised the target price to Rs 160 from Rs 145, citing stronger-than-expected performance in the December quarter. The brokerage said the company delivered a margin beat in Q3, supported by sequential improvement across key business segments.
According to Jefferies, margin expansion—quarter-on-quarter—was led by polymers and integrated assemblies. The firm estimated that recent acquisitions should support growth in FY27. It added that the company continues to focus on expanding into electronics and aerospace. Jefferies raised its FY27–28 EPS estimates by 8–11% and now expects a 31% EPS CAGR over FY26–28.
Morgan Stanley on Samvardhana Motherson International
Morgan Stanley reiterated its constructive view on Samvardhana and maintained its overweight rating while raising the target price to Rs 144 from Rs 126 after improving operational trends. The brokerage said the EU business turnaround is showing results, supported by better utilisation and stabilising demand.
It said the non-auto ramp-up remains on track. The brokerage added that new acquisitions should drive further growth from the second half of FY27 contributing to scale and margin improvement. The firm said continued execution across core and non-auto segments supports multi-year growth despite global uncertainties.
Citi on Samvardhana Motherson International
Citi maintained its sell rating on Samvardhana, but raised the target price to Rs 95 from Rs 85 despite near-term positives. The brokerage said Q3 results came in ahead of estimates and management commentary indicated that operational efficiencies are driving margin expansion.
Citi said consumer electronics and aerospace remain key focus areas and ramp-up in these divisions should offset muted demand in developed markets. However, the firm said it remains cautious on global demand and the profitability of emerging businesses.
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