Samvardhana Motherson Shares Scale New Peak, Analysts Bullish
The share price of Samvardhana Motherson International surged to a fresh 52-week high during Friday's trading session, propelled by sustained buying interest. The stock climbed as much as 0.60% to reach a new peak of ₹116.80 per share on the BSE, extending its winning streak for the fourth consecutive day.
Over this four-session rally, the stock has accumulated impressive gains of more than 7%, showcasing strong investor confidence. On Friday, the stock opened higher at ₹116.50 compared to its previous close of ₹116.10. While it touched an intraday high of ₹116.80, it also experienced some volatility, dipping to a low of ₹115.65.
Strong Financials and Growth Drivers
The market optimism is backed by the company's recent financial performance. In early November, Samvardhana Motherson announced its September quarter results, reporting a net profit of ₹827 crore. Although this was 6% lower than the previous year's ₹880 crore, the company showed robust operational health.
EBITDA saw a healthy increase of 6.7% year-on-year, reaching ₹2,611 crore. Furthermore, the company's revenue witnessed significant growth, rising 8.5% to ₹30,173 crore. This revenue surge was primarily driven by strong performances in key segments like wiring harnesses, integrated assemblies, and vision systems.
Market watchers are closely monitoring the management's commentary on several fronts, including the overall industry outlook, strategies to increase content per vehicle, expansion in non-automotive sectors, updates on acquisitions, and the impact of global tariffs.
Analysts Maintain 'Buy' Rating, See Further Upside
Brokerage firm Nuvama Institutional Equities has reaffirmed its positive stance on the stock. They retain a 'BUY' recommendation with a target price of ₹126, based on a sum-of-the-parts (SotP) valuation.
"We are constructive on Samvardhana Motherson's prospects on the back of strong management capability, inorganic initiatives, a pending order book, and increasing content," stated Nuvama in its report. The brokerage has increased its FY26E–28E EBITDA estimates by up to 9%, factoring in higher margins and the recent Yutaka acquisition. They project a revenue and earnings CAGR of 9% and 16%, respectively, over FY25–28E.
Technical Analysts Suggest 'Buy on Dips' Strategy
Technical experts also echo the bullish sentiment. According to Rajesh Bhosale of Angel One, the stock confirmed a breakout from a consolidation pattern this week, rallying nearly 6%. This momentum indicates potential for further gains.
"A buy-on-dips approach is advised, with the breakout zone of ₹110–112 now acting as a key support. On the upside, ₹128–135 remains the short-term target range," Bhosale advised.
Adding to this, Rupak De of LKP Securities noted that the stock is in a clear uptrend and any price dips are likely to be bought into. He recommends buying or holding the stock with a stop loss set at ₹112 and sees an upside target of ₹123.
Disclaimer: The views and recommendations above are from individual analysts and brokerages. Investors are advised to consult certified experts before making any investment decisions.
