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. Factoring in weak demand in key regions, we have lowered our FY26E EPS by 15% and largely maintained our FY25E EPS. The stock has corrected over the last few months given an uncertain demand macro in its key regions. However, strong 3Q performance demonstrates SAMIL’s business resilience and should allay investor concerns. After the correction, SAMIL is attractively valued at 21.3x FY26E/18x FY27E consolidated EPS. Reiterate our BUY rating with a revised TP of INR160, based on 24x Dec’26E EPS.
Outlookthe strong 3Q performance demonstrates SAMIL’s business resilience and should help allay these concerns. After the correction, SAMIL is attractively valued at 21.3x/18x FY26E/FY27E consolidated EPS. We reiterate our BUY rating with a revised TP of INR160, based on 24x Dec’26E EPS.
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