Samvardhana Motherson International Ltd. share price target

Samvardhana Motherson (SAMIL) delivered a largely in-line performance, with consol revenue up 8.5% YoY (6% ex-Atsumitech) to Rs301.7bn, with EBITDAM at 8.7% (vs 8.8% YoY), while APAT at Rs7.3bn was modestly below expectations.

Samvardhana Motherson International (SAMIL)’s operating performance was slightly ahead of our estimates. Outlook for global LV volumes is improving led by new platform/model launches from global OEMs.

Samvardhana Motherson’s (SAMIL) 2QFY26 adjusted PAT at INR8.6b was well above our estimate of INR6.3b, growing 15% YoY.

The Atsumitec acquisition supported the revenue growth for SAMIL. However, structural costs and greenfield-related start-up expenses impacted margin and profitability. Despite this, emerging markets performed well, while developed markets faced pressures due to structural challenges. Nevertheless, the company says these challenges are in line with its plans and expects developed markets to contribute positively in Q3 and Q4 driven by higher demand. With strategic investments, a well-diversified business model and a strong order book, the...

The company’s liquidity position was adequate, supported by expectation of healthy cash flows, sizeable cash and bank balances (~Rs. 5,910 crore as on March 31, 2025) and low to moderate utilisation of committed facilities (buffer of ~Rs. 3,397 crore as on March 31, 2025).

Samvardhana Motherson International (SAMIL), at its analyst meet, presented its Vision 2030 where the company shared its aspiration to grow its gross revenue ~4x to USD 108bn over the next five years.

We attended SAMIL’s analyst meet, where it laid out a bold and transformative roadmap over FY25-30. Having outperformed the auto industry 2.5x faster in last 5Y, SAMIL has set its sight on USD108bn revenue (4x vs USD25.7bn in FY25) and 40% ROCE by FY30.

SAMIL’s 4QFY25 EBITDA margin at 9% was below our estimate of 10% even as PAT came in line with estimates, largely due to a lower tax rate.

Samvardhana Motherson International’s (SAMIL) EBITDAM at 9.0% was ~100bps below I-Sec estimate. Demand environment for light vehicles remains muted.

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 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 (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.