Brokerages Jefferies and Nomura have “buy” ratings while CLSA has an “outperform” rating on the stock with price targets indicating up to a 23.4% upside from its previous close.
Jefferies
The brokerage has a “buy” rating on the stock and a price target of ₹190 per share.
It said the company’s recurring profit after tax (PAT) grew 55% from last year and was 5% above the brokerage’s estimate.
Jefferies sees multiple growth drivers for Samvardhana Motherson going forward, including expansion in electronics and aerospace, recent acquisitions, and recovery in North America commercial vehicles.
High commodity prices could pose near-term margin headwinds but usually are passed on with one or two quarter lag, the brokerage said.
As a result, Jefferies has raised its financial year 2027-2029 earnings per share (EPS) estimates by 2% – 3% and sees a 24% earnings per share (EPS) compound annual growth rate (CAGR) over the next three years.
Nomura
The brokerage has a “buy” rating and a target price of ₹171 per share on the stock.
It said Samvardhana Motherson’s steady earnings growth is likely to continue.
The brokerage added that high free cash flow (FCF) will help with the acquisition optionality.
CLSA
The brokerage has an “outperform” rating on Samvardhana Motherson, with a target of ₹190 per share.It said the company’s first quarter EBITDA margin came in at 8.8%, which was in-line with their estimates.
CLSA believes a gradual ramp-up in non-auto businesses, especially in consumer electronics, will drive an organic 14% CAGR over FY26-28, other than the continued steady execution in auto segments.
Over and above this, there is scope of inorganic growth, considering the leverage ratio (net debt/EBITDA) being at 0.5 times as per the brokerage’s estimate compared to the company being comfortable until 2.5x levels, CLSA added.
The company also highlighted that a third consumer electronics facility would go live in the third quarter of this fiscal.
Stock reaction
Of the 27 analysts who have coverage on the stock, 22 have a “buy” rating, two have a “hold” rating and three have a “sell” rating.
Shares of Samvardhana Motherson Shares are trading 6.1% higher on Friday at ₹164.35. The stock has now extended its 2026 gain to 35%.
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