Buy Samvardhana Motherson International; target of Rs 116: Geojit

Geojit is bullish on Samvardhana Motherson International has recommended buy rating on the stock with a target price of Rs 116 in its research report dated September 05, 2023.

Broker Research

September 05, 2023 / 17:41 IST

Buy

Geojit's research report on Samvardhana Motherson International

Samvardhana Motherson International Limited (SMIL) manufactures and distributes automotive parts. It has products such as HVAC systems, air intake manifolds, highway vehicle cabins, air compressors and pedal box assembly. In Q1FY24, consolidated revenue rose 27.2% YoY to Rs. 22,462cr (flat sequentially) driven by increased production volume and stellar performance across divisions. EBITDA surged 68.3% YoY to Rs. 1,978cr, with a 210bps YoY improvement in EBITDA margin to 8.8%. SMIL showcased impressive revenue growth and improved margins owing to operational efficiency and strong performance across divisions. In our view, the company has a promising outlook because of factors such as premiumisation, acquisitions, continued customer support, restructuring efforts and a stable macroeconomic environment.

Outlook

Hence, we upgrade our rating to BUY on the stock with a revised target price of Rs. 116 based on 19x FY25E adjusted EPS.

For all recommendations report, click here