Shares of Samvardhana Motherson International Ltd (SAMIL) advanced nearly 5% in Wednesday’s trade after the company posted a solid performance for the December quarter, prompting several brokerages to revise their target prices upward.
The stock climbed to an intraday high of ₹135.70 on the BSE amid increased investor interest.
📈 Strong Revenue & Margin Expansion
SAMIL reported consolidated revenue growth of 13.5% year-on-year in Q3, driven by broad-based strength across business verticals, consolidation of Atsumitec, and benefits from favourable currency movements.
Operating performance also improved:
- EBITDA margin expanded 100 basis points sequentially to 9.7%
- Margin gains were seen across most verticals
- Wiring harness business faced temporary margin pressure due to timing differences in cost pass-through
🏭 Growth Drivers Across Segments
Analysts highlighted multiple positive triggers:
- Strong momentum in the consumer electronics business, with plans to double capacity
- Vertical integration strategy supported by ECMS subsidies
- European restructuring initiatives delivering meaningful margin improvement
- Expanding aerospace order book backed by new product launches
- Partnerships in India’s emerging semiconductor ecosystem
🎯 Brokerages Raise Targets
Following better-than-expected quarterly performance, several brokerages turned more optimistic:
- Emkay Global raised its target to ₹140
- MOFSL reiterated a BUY rating with a revised target of ₹148
- YES Securities maintained a positive stance with a ₹150 target
- Nomura increased its target to ₹140
- Nuvama retained BUY, setting a target of ₹147
Analysts expect SAMIL to outperform global automobile sales trends, supported by premiumisation, EV transition, strong order backlog, and successful integration of acquisitions.
Brokerages are factoring in revenue CAGR of around 11% and earnings CAGR of over 30% during FY26–FY28 estimates.
🚗 Outlook Remains Strong
Despite global macroeconomic volatility, SAMIL’s performance remains resilient due to:
- Stable booked business
- Limited tariff impact
- Diversified global footprint
- Rising content per vehicle
Market participants view the company as a preferred pick within the auto ancillary space.
