Samvardhan Motherson share price: Buy, Sell or Hold after Citi slashes target on bleak margin outlook, return ratio

Samvardhan Motherson International shares were trading up 1.6 per cent at Rs 75.20 on the NSE on Monday despite several brokerages slashing targets.

Citi has maintained a ‘Sell’ on Samvardhana Motherson International shares for a target of Rs 68, calling company’s growth aspirations 'ambitious'. It is of the view that the return ratios and margins would be compromised even if this auto component maker is on track with its guidance.

Group revenue will reach USD 36bn by FY25 with ROCE of 40 per cent, the brokerage firm noted. Moreover, the dividend payout will be 40 per cent of its profit, Citi said. 

Auto segment revenue will be 75 per cent of the total while rest will come from new divisions, Citi further said. 

The stock was recommended at a market price of Rs 74.    

While Jefferies has maintained Underperform rating for a target of Rs 60, Nomura retained Neutral rating with target of Rs 80.  

Another brokerage house CLSA has increased the target on the counter from Rs 84 to Rs 89 and maintained a Buy call. 

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Meanwhile, Jefferies has put a price target of Rs 1150 while maintaining a ‘Buy’ recommendation. In a note, analysts in Jefferies have highlighted bank’s focus on strategic initiatives and priorities including digitalisation and network expansion Get more Markets News and Business News on Zee Business.

Samvardhana Motherson has delivered around 14 per cent return in the past one month. It has, however, declined 50 per cent YTD.

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(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)