Samvardhana Motherson shares jump 5% as analysts up target prices after robust Q3

Shares of Samvardhana Motherson International Ltd (SAMIL) rose 5 per cent in Wednesday’s trade after a robust December quarter performance prompted analysts to raise their target prices on the auto ancillary stock.

SAMIL delivered a strong Q3, with consolidated revenue rising 13.5 per cent YoY, led by strong growth across verticals, Atsumitec consolidation, and some benefits from favorable currency movement. Emkay Global noted that SAMIL’s Ebitda margin improved 100 basis points sequentially to 9.7 per cent, led by robust margin performance across verticals barring wiring harness, which was impacted by timing effect from cost pass-on to customers. 

On Wednesday, the stock rose 4.82 per cent to hit a high of Rs 135.70 apiece on BSE.

“SAMIL is witnessing strong traction in its consumer electronics business and plans doubling capacity while enabling vertical integration aided by ECMS subsidies. Restructuring initiatives in Europe (MPP) have delivered a hefty margin rise with further headroom for improvement,” it said while upping its target on the stock to Rs 140 from Rs 130 earlier.  

Analysts noted SAMIL’s aerospace orderbook is seeing consistent growth, led by new product launches. The company is partnering with established global players in the nascent semiconductor space in India. 

“Given the better-than-expected performance in 3Q despite adverse global macro, we raise our earnings estimates by 6 per cent/1 per cent for FY26/FY27. We expect SAMIL to continue to outperform global automobile sales, fueled by rising premiumization and EV transition, a robust order backlog in autos and non-autos, and successful integration of recent acquisitions. Given the long-term growth opportunities, we reiterate our BUY rating on the stock with a revised target of Rs 148,” MOFSL said.

For YES Securities, SAMIL is preferred pick among ancillaries. SAMIL’s recent stock outperformance, despite a volatile global macro backdrop, is led by resilient 9MFY26 marked by stable booked business and limited tariff impact, the brokerage said adding that the outlook remains robust. This brokerage suggested a target of Rs 150 on the stock. Nomura India upped its target price on SAMIL to Rs 140 from Rs 127 earlier.

“We are constructive on SAMIL’s prospects on the back of strong management capability, inorganic initiatives, pending order book and increasing content per vehicle. We are building in revenue/earnings CAGR of 11 per cent/31 per cent over FY26–28E. Retain ‘BUY’ with an SotP target of Rs 147 based on FY28E (earlier Rs 140),” Nuvama said.