Buy Samvardhana Motherson International; target of Rs 140 : ICICI Securities

ICICI Securities's research report on Samvardhana Motherson International

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. This augurs well for SAMIL’s content growth and profitability. Its healthy automotive order book (OB), of USD 84.2bn, will likely support growth. SAMIL’s diversified business model and ‘globally local’ strategy also positions the company favourably vs. peers. Non auto segments (led by consumer electronics and aerospace) will likely continue their strong growth momentum, backed by its strong OB (USD 3bn).

Outlook

Given the challenging macros, acquisition pipeline remains healthy. Maintain BUY with an unchanged TP of INR 140, based on 20x FY27E EPS.