Buy or Hold? Samvardhana Motherson hits fresh 52-week high on robust ramp-up in non-auto business

Samvardhana Motherson hits a 52-week high as brokerages lift targets on non-auto growth and FCF; check upsides before you buy or hold.

Written by Sparsh Bansal

August 7, 2026 16:46 IST

Auto ancillary and non-auto manufacturing infographic illustrating Samvardhana Motherson's growth drivers, including wiring harness production, consumer electronics mother plant, aerospace order book, and recent Yutaka and Nexans acquisitions.

SAMIL's rapid expansion are driving analyst consensus. (AI generated image)

Samvardhana Motherson shares rallied nearly 10% to hit a fresh 52-week high of Rs 169.80 on the NSE after the company reported its quarterly earnings for Q1FY27. The key brokerage houses post that raised their price target on the stock citing earnings growth and robust ramp up in the non-auto segment.

Nomura on Samvardhana Motherson

Nomura has raised its price target on Samvardhana Motherson to Rs 171, from Rs 155, implying an upside of over 10%. The brokerage maintained its ‘Buy’ rating on the stock and said that steady earnings growth will continue. This raise in price target came on the back of strong ramp-up of non-auto segments and high free cash flow (FCF) to help with acquisition optionality.

The brokerage’s estimated revenue growth is 11% for FY27, 12% for FY28, and 18% for FY29, driven by the ramp-up of greenfield plants and strong growth in non-auto segments led by consumer electronics.

“We expect sustained margin improvement with operating leverage. With 6-7% FCF yields (FY28-29), further potential exists for acquisition-driven growth,” said the brokerage.

Motilal Oswal on Samvardhana Motherson

Motilal Oswal Financial Services maintained its ‘Buy’ rating on Samvardhana Motherson and raised its price target to Rs 178, implying an upside of over 15% from the current market price.

“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,” said the brokerage.

Further, the current adverse global macro is likely to lead to industry consolidation, with players like Samvardhana Motherson likely to emerge as key beneficiaries in the long run.

JMFL on Samvardhana Motherson

JM Financial also raised its price target to Rs 180 from Rs 156, implying an upside of 16%. The brokerage house maintained its ‘Buy’ rating on the stock.

The brokerage said that QoQ contraction is primarily due to inflationary pressures. While management remains constructive on the core auto business.

One of the key growth drivers is expected to be consumer electronics, with growth likely to accelerate upon commissioning of the third facility in Q3FY27 and margin improvement supported by upstream integration.

Second driver is aerospace, supported by a 17% YoY expansion in the order book and ongoing diversification into jet and helicopter components. Lastly, consolidation of recent acquisitions, including Yutaka (Q2FY27) and Nexans (Q2FY27).

“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%,” said JM Financial.

Samvardhana Motherson share price performance

The share price of Samvardhana Motherson surged 10.5% in the last five trading days. The stock has risen 17.8% in the past one month and 35.8% in the last six months. Samvardhana Motherson’s share has given a return of almost 80% over the previous 12 months.

This article was first uploaded on August seven, twenty twenty-six, at forty-six minutes past four in the afternoon.