Samvardhana Motherson International Ltd. share price target

Samvardhana Motherson International’s (SAMIL) EBITDAM at 9.7% in Q3FY25, (up ~90bps QoQ) was above consensus’ estimate of 9.2%. Consolidated revenue was up 8% YoY, mostly led by inorganic growth amidst muted industry volumes.

Samvardhana Motherson’s (MOTHERSO) 3QFY25 operational performance was in line with our estimates. Despite a tough global macro environment, the business remained resilient as margins improved 70bp YoY.

Samvardhana Motherson (MOTHERSO) reported muted results, with an EBITDA margin of 8.8%, down 80bp QoQ (vs. est. 9.4%), hit by global PV industry slowdown, slower EV ramp-up, and seasonal factors.

Samvardhana Motherson (MOTHERSO) reported a strong 65.5% YoY growth in earnings (in line with estimates) despite muted automotive production growth in 1Q.

Samvardhana Motherson International’s (SAMIL) Q1FY24 EBITDAM at 8.6% (down 40bps QoQ) exceeded 8.5% for the second successive quarter. This was driven by improving operating leverage, price hikes coming with lag to pass on inflation, and commodity tailwinds seeping through. Consolidated revenue was up by an impressive 28% YoY driven by 25%+ growth across key segments, with the large-ticket M&As yet to reflect in the numbers.

Samvardhana Motherson (SAMIL) has entered into an agreement with Honda Motors to acquire 81% stake in Yachiyo Industry's 4W component business (Honda group currently owns 51% stake in it and is a publicly listed entity) for an equity consideration of Euro145mn, with the entity being net cash.

Samvardhana Motherson International’s (SAMIL) Q4FY23 EBITDA margin at 9% is up 120bps QoQ, and is higher than the consensus estimate of 8.1%. This was driven by gradual recovery in the gross margin (GM), operating leverage benefits and partial cost pass-through to customers.

Samvardhana Motherson International (SAMIL) has reached an agreement to acquire 100% equity stake in SAS Autosystemtechnik GmbH from Faurecia for an enterprise value of EUR540mn. SAS is a leading global provider of cockpit module assemblies for cars with manufacturing facilities/offices across 12 countries with a total headcount of ~5,000.

Samvardhana Motherson International’s (SAMIL) Q3FY23 EBITDAM at 7.8%, flat QoQ, was in line with our estimate though revenue growth in EUR terms at ~4% QoQ was a positive surprise in a quarter with fewer production days.

Samvardhana Motherson International (SAMIL) is targeting to treble its revenue to US$36bn in next 3-4 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%).