Buy Samvardhana Motherson; target of Rs 100: Motilal Oswal

Motilal Oswal's research report on Samvardhana Motherson

MOTHERSO’s 3QFY23 performance beat our estimates, driven by a consistent recovery in auto production in key markets. Easing supply-side issues and receding cost headwinds should drive strong growth and balance sheet deleverage for MOTHERSO.

Outlook

We cut our FY23E/FY24E EPS by 4.5%/3% to factor in higher depreciation and a lower profit share from associates. Maintain BUY with a TP of INR100 (premised on Dec’24 SOTP).

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