Buy Samvardhana Motherson International; target of Rs 155: ICICI Securities

Buy

ICICI Securities research report on Samvardhana Motherson International

Samvardhana Motherson International’s (SAMIL) EBITDAM at 9.7% in Q3FY25, (up ~90bps QoQ) was above consensus’ estimate of 9.2%. Consolidated revenue was up 8% YoY, mostly led by inorganic growth amidst muted industry volumes. Global demand trends in PV and CV segments are likely to remain muted in the near term.

Outlook

However, we expect SAMIL to continue its growth momentum aided by increasing content/vehicle, growth in nonautomotive business and inorganic growth. We are building in a revenue CAGR of 9% for FY25–27E, resulting in FY26E revenue of ~USD 14bn. Maintain BUY with DCF-based revised TP of INR 155 (earlier: INR 185), implying ~20x FY27E earnings.

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Samvardhana Motherson International - 17022025 - isc