Three brokerages have recommended ‘Buy’ on the same auto sector stock, but their target prices and upside potential expectations vary. As per these brokerage reports, the company’s expansion plans, global presence, and diversified business model are driving the positive outlook.
The stock in focus here is Samvardhana Motherson.
Let’s take a look at what each brokerage has to say about this auto sector stock, their new target prices, upside potential, and the reasons behind their calls.
Motilal Oswal on Samvardhana Motherson: Buy with Rs 114 target, 21% upside
The brokerage firm, Motilal Oswal has given Samvardhana Motherson a “Buy” rating to this stock. It has set a target price of Rs 114. This implies a 21% upside from current levels.
According to the brokerage report, “SAMIL is not directly impacted by US tariffs as its facilities are close to most of its customers. Further, given the rising scale, management would look to unlock value by listing some of its key businesses separately, at an opportune time.”
The brokerage highlighted that while the company fell short of its FY20-FY25 revenue target of USD 36 billion, it significantly outperformed the market amid global challenges such as COVID-19, semiconductor shortages, and energy crises in Europe.
Looking ahead, SAMIL aims for a gross revenue of USD 108 billion by FY30, backed by diversification, RoCE of 40%, and a dividend payout of up to 40% of consolidated profit. “Further, it delivered a robust 3x growth in EBIT and 4.7x growth in PAT in this five-year period,” the report added.
Jefferies on Samvardhana Motherson: Buy with Rs 110 target, 16% upside
Global brokerage Jefferies also maintained a “Buy” on the stock, assigning a target of Rs 110. This translates to a 16% potential gain.
As per the brokerage report, “SAMIL outlined an ambitious gross rev target of $108bn by FY30 (~5x FY25 gross revenues) with ~25-33% expected from non-auto. More than the absolute number, what stands out to us is SAMIL’s huge growth appetite and a strategic pivot from autos to broader manufacturing ambition spanning sectors including electronics & aerospace.”
Jefferies report further noted that the company is expanding in aerospace, having become a tier-1 supplier to Boeing and Airbus, and is scaling its electronics business with new plants opening over FY26-FY27.
“A weak global auto environment and tariff uncertainties continue to pose headwinds, but we like the company’s large growth appetite, strong manufacturing capabilities, and expanding addressable market,” the report said.
ICICI Securities on Samvardhana Motherson: Buy with Rs 115 target, 22% upside
ICICI Securities is slightly more optimistic, giving Samvardhana Motherson a “Buy” rating with a target of Rs 115. This represents a 22% upside. According to the brokerage report, “SAMIL presented its Vision 2030 where the company shared its aspiration to grow its gross revenue ~4x to USD 108bn over the next five years. Directionally, this may position Motherson group among top-3 auto ancillaries globally.”
The brokerage emphasised that SAMIL’s expansion into aerospace, consumer electronics, and semiconductors, along with strategic acquisitions, is central to its growth story. “Management indicated that there has been record number of bankruptcies globally in automotive segment, which presents multiple acquisition opportunities, especially with respect to companies owned by PEs or where succession is an issue,” the brokerage report said.