Samvardhana Motherson International - Aiming To Treble Scale In Next Three Years: ICICI Securities

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Samvardhana Motherson International Ltd. is targeting to treble its revenue to $36 billion in next three-four years through a mix of organic and inorganic growth with 25% of the revenue mix aimed to come from the non-auto segment (currently it is sub-3%). Besides, by focusing on capital allocation, efficient working capital management and improved profitability, Samvardhana Motherson is aiming to maintain its targeted return on capital employed of 40% for the envisaged $36 billion entity, post taking care of ~40% dividend payout.~60% of the incremental revenue is expected from inorganic route, funded by internal cashflows with net debt being capped at 2.5 times Ebitda. Industry volume growth, vehicle premiumisation, vehicle electrification, new product introduction and wallet share gains would be the key drivers of organic growth. Japan would be a new large market targeted to contribute meaningfully to Samvardhana Motherson’s revenue (currently it is not even among the company’s top-10 revenue-contributing markets). Aerospace, logistics, medical equipment and IT services would be the key areas in the non-auto domain, which Samvardhana Motherson would be aiming to ramp up profitably to add to revenue..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Samvardhana Motherson International - Aiming To Treble Scale In Next Three Years: ICICI Securities

The company is targeting to treble its revenue to $36 bn in next three-four years through a mix of organic and inorganic growth.

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Samvardhana Motherson International - Aiming To Treble Scale In Next Three Years: ICICI Securities

The company is targeting to treble its revenue to $36 bn in next three-four years through a mix of organic and inorganic growth.

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