SPR benefits from a highly diversified business model across products, powertrains, customers, vehicle segments, channels and geographies, reducing concentration and cyclicality risks.Most of its products are powertrain-agnostic and relevant across ICE and EV platforms. No single vehicle segment or customer contributes materially to revenue, reflecting balanced exposure across auto segments and virtually all major OEMs.
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Motilal Oswal Report
Motilal Oswal has initiated coverage on SPR Auto Technologies Ltd. with a Buy rating and a target price of Rs 6,150, premised on 30 times Sep'28E earnings per share.
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Additionally, the company has recently completed the Rs 1,000 crore QIP to fund future organic and inorganic growth opportunities, which could act as a key trigger for further upside.
The brokerage estimates a 21% net profit compound annual growth rate, driven by a stable standalone business and the rapid scale-up of subsidiaries. The balance sheet is expected to improve gradually from the FY26 base, supported by a strong margin expansion in subsidiaries and limited growth capex requirements.
Consolidated core return on capital employed is expected to improve from 20% in FY26 to 28% in FY29.
At the reports current market price of Rs 4,494, the stock is trading at 23.7x FY28E and 20.4x FY29E EPS.
Key risks:
- rise in competitive intensity,
- fluctuations in commodity prices,
- changes in technology, and
- loss of key customers.
Click on the attachment to read the full report:
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