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Motilal Oswal Sees 37% Upside in SPR Auto Technologies
SPR Auto Technologies makes parts used in vehicles.
Its shares have risen by nearly half in the past six months.
Motilal Oswal Financial Services believes the company could grow further.
It gave the stock a Buy rating.
The firm set a target price of ₹6,150 per share.
This target is about 37% higher than the cited market price.
Analysts expect the company’s profits to grow as its subsidiaries expand.
They also believe acquisitions, stronger margins and the ₹10 billion fundraising could support future growth.
Motilal Oswal Financial Services initiated coverage of SPR Auto Technologies with a ‘Buy’ rating and a ₹6,150 target price.
The target implies 37% upside from the cited current market price of ₹4,494 per share.
SPR Auto Technologies shares have gained roughly 48.84% to 49.23% over six months, according to different figures in the report.
Motilal Oswal expects a 21% profit-after-tax compound annual growth rate, supported by subsidiaries and a stable standalone business.
The company’s recently completed ₹10 billion qualified institutional placement is expected to fund future organic and inorganic growth.
- Who
- SPR Auto Technologies and Motilal Oswal Financial Services.
- What
- Motilal Oswal initiated coverage with a Buy rating and a ₹6,150 target price, implying 37% upside.
- Where
- The company is headquartered in Delhi, and its shares trade on the BSE.
- When
- The stock was discussed during Friday trading on September 25; the report also cites six-month and one-year returns.
- Why
- Motilal Oswal cited margin expansion, subsidiary growth, business diversification, a stronger balance sheet and funding from a ₹10 billion QIP.
Key facts
- Analyst view
- Motilal Oswal maintained a Buy rating.
- Target price
- ₹6,150 per share.
- Cited current market price
- ₹4,494 per share.
- Implied upside
- 37%.
- Six-month performance
- Approximately 48.84% to 49.23%, with differing figures reported.
- One-year performance
- Approximately 76%.
- QIP size
- ₹10 billion.
- Expected PAT growth
- 21% compound annual growth rate.
Quotes
Motilal Oswal Financial Services
Brokerage firm providing the stock analysis and recommendation.
“SPR is benefiting from rising multi-fuel opportunities (CNG, ethanol, hydrogen and hybrids), strong aftermarket demand, and the premature exit of global competitors from the ICE ecosystem.”
livemint.com
“At CMP of INR4,494, the stock is trading at 23.7x FY28E and 20.4x FY29E EPS. We initiate coverage on SPR with a BUY rating and a TP of INR6,150, premised on 30x Sep’28E EPS.”
livemint.com
Sources
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