SAMIL has ruled out major impact of US tariffs on India given low exports exposure at less tha $10 million for Q1 FY26. Majority of US sales are USMCA-compliant; for non-USMCA compliant parts, agreements with customers to pass on related costs are underway, albeit with a lag. Consumer electronics biz capex is on track with robust demand.
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Yes Securities Report
Samvardhana Motherson International Ltd. is all set for another year of outperformance on the back of-
revenue diversification aimed at accelerating incremental growth from high volumes markets like India, Mexico, Japan and China (~35% of topline),
successful integration of recent acquisitions, SOP for consumer electronics and Aerospace ramp up, Japanese supplier network breakthroughs beyond Honda (Yachio + Ichikoh + Atsumitec) and
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.
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