3 weeks ago

Samvardhana Motherson hits 52-week high as brokerages raise targets

Samvardhana Motherson hits 52-week high as brokerages raise targets
Buy or Hold? Samvardhana Motherson hits fresh 52-week high on robust ramp-up in non-auto business · financialexpress.com

Samvardhana Motherson is a big company that makes parts for cars and other things.

After it shared its money results for the first part of the year, its share price jumped a lot and reached its highest point in 52 weeks.

The share price went up because the company is doing well in businesses that are not cars, like electronics.

Smart money experts at three big financial companies all said the stock is a good thing to buy.

They raised their target prices, which are guesses about how high the price might go.

One expert thinks the price could go to Rs 171, another to Rs 178, and the third to Rs 180.

These experts believe the company will keep growing because of new factories and buying other companies.

They also like that the company makes a lot of free cash, which it can use to buy more businesses.

Even though there is some inflation making costs higher, the experts are still hopeful.

Over the last year, people who bought this stock made almost 80% more money.

Key facts

52-week high
Rs 169.80
Nomura price target
Rs 171 (raised from Rs 155), Buy
Motilal Oswal price target
Rs 178, Buy
JM Financial price target
Rs 180 (raised from Rs 156), Buy
Stock return (12 months)
~80%
Nomura revenue growth estimates
11% FY27, 12% FY28, 18% FY29
JM Financial FY27E EBITDA margin
9.8%
Acquisitions to consolidate
Yutaka (Q2FY27) and Nexans (Q2FY27)

Quotes

Motilal Oswal Financial Services

Brokerage firm Motilal Oswal

“"We factor in 16.5% and 16% revenue growth for FY27 and FY28 driven by emerging businesses. On margins, we expect pass‑through of higher raw material costs to have a denominator effect, and we estimate FY27E EBITDA margin to be at 9.8%."”
financialexpress.com
“"We expect SAMIL to continue to outperform global automobile sales, fueled by rising premiumization and EV transition, a robust order backlog in autos and non‑autos, and successful integration of recent acquisitions."”
financialexpress.com

Sources

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