ICICI Securities research report on Samvardhana Motherson International
Samvardhana Motherson International’s (SAMIL) EBITDAM at 9.0% was ~100bps below I-Sec estimate. Demand environment for light vehicles remains muted. However, SAMIL continues to outperform the underlying industry led by 1) premiumisation / hybridisation led content growth and 2) cross-selling opportunities from recent acquisitions. Non-automotive businesses (led by Consumer Electronics and Aerospace) are expected to continue their strong growth momentum. Given the challenging macros, acquisition pipeline also remains healthy.
Outlook
We are building in revenue / EBITDA CAGR of 11%/17% over FY25–27E. Maintain BUY with TP of INR 185 (earlier: INR 160), based on 20x FY27E EPS (earlier: 18x).
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