The share price of Samvardhana Motherson International climbed as much as 4.37% to Rs 135.83 on February 11, hitting a 52-week high after the company announced its December quarter (Q3FY26) results a day earlier.
The auto components major reported a 9% year-on-year rise in consolidated net profit to Rs 1,072.27 crore for Q3FY26, compared with Rs 984.35 crore in the same quarter last year.
The earnings triggered fresh interest from brokerage houses, with Motilal Oswal and Nomura reiterating their positive stance on the stock and projecting further upside from current levels.
Motilal Oswal on Samvardhana Motherson: Raising estimates after Q3 beat
The domestic brokerage house Motilal Oswal has maintained a ‘Buy’ rating. It has set a target price of Rs 148, which implies an upside potential of around 15% from current levels.
According to the brokerage report, the company delivered a better-than-expected performance in the third quarter despite challenging global macroeconomic conditions.
The brokerage said, “Given the better-than-expected performance in Q3 despite adverse global macro, we raise our earnings estimates by 6%/1% for FY26/FY27.”
As per the brokerage report, “We expect Samvardhana Motherson to continue to outperform global automobile sales, fuelled by rising premiumisation and electric vehicle transition, a robust order backlog in autos and non-autos, and successful integration of recent acquisitions.”
It added that while global tariff-related issues could create some near-term pressure in certain regions, the company may be relatively insulated. According to the brokerage report, “We expect Samvardhana Motherson to be the least impacted by these tariffs as it has all its facilities close to its customers and can effectively realign supplies as per customer needs.”
Motilal Oswal has valued the stock at 24 times its estimated earnings per share (EPS) for December 2027 to arrive at its revised target price.
Nomura on Samvardhana Motherson: Margins surprise on the positive side
Nomura has also retained a ‘Buy’ rating on the stock, with a revised target price of Rs 140. This implies an upside of around 8.5%. According to the brokerage report, the company’s Q3FY26 consolidated revenue stood at Rs 31,400, up 13.5% year-on-year.
The brokerage highlighted margin improvement as a key positive. “EBITDA margin at 9.7% was higher,” Nomura said. Adjusted Profit After Tax (PAT) rose 22% year-on-year. However, consolidated net debt increased slightly to Rs 1,060 crore from Rs 1,010 crore in the previous quarter.
Nomura expects growth momentum to continue. According to the brokerage report, “We expect a recovery of passenger vehicle demand and ramp-up of greenfield plants, aerospace, consumer electronics business and integration of two acquisitions to support 21%/11% revenue growth in FY27/28F.”
The brokerage has maintained its valuation multiple at 19 times estimated FY28 earnings per share.
Samvardhana Motherson share performance
In the past five trading sessions alone, Samvardhana Motherson shares have gained around 11%. Over the last one month, the stock has delivered a return of nearly 17%.
Looking at a broader timeframe, the stock has risen about 48% in the past six months and 57% over the last one year.
So far in calendar year 2026, the shares have gained around 10%. Over a five-year period, the stock has delivered a return of approximately 53%.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.