Samvardhana Motherson shares rally post-four-fold jump in Q1 profit; here is what analysts say

Samvardhana Motherson share price NSE, Samvardhana Motherson share price target: Shares of Samvardhana Motherson International (SAMIL) surged on Friday, a day after the auto component maker's consolidated net profit jumped over four-fold to Rs 601 crore for the first quarter ended June 30, 2023. The company posted a net profit of Rs 141 crore for the April-June quarter of the last fiscal. Samvardhana Motherson shares opened at Rs 98.9 and later surged over 5 per cent to touch the day's high of Rs 100.8 on the NSE.

The counter traded near its 52-week high of Rs 100.9, up by Rs 4.90, or 5.15 per cent, in the morning deals. Its 52-week high level stands at Rs 100.05. As per SAMIL's regulatory filing, the company's total revenue from operations rose to Rs 22,462 crore in the June quarter as against Rs 17,654 crore logged in the year-ago period. Read more

Samvardhana Motherson share price target: Here's what leading brokerages suggest

After the Q1 results announcement, brokerage firm CLSA has maintained a buy call on the counter and has raised the target price to Rs 124 from Rs 102, the highest target among the brokerages tracking the stock. CLSA noted that the company's consolidated EBITDA was 7 per cent below estimates, led by a miss in the Samvardhana Motherson Reflectec (SMR) business. Revenue grew by 28 per cent YOY and was strong across all verticals. The company benefitted from a recovery in European automotive volumes, aiding the SMR and Samvardhana Motherson Peguform (SMP) businesses. The margin has improved in the module vision systems and wiring harness divisions, the brokerage added.

In addition, Jefferies has continued with a buy stance with a target price of Rs 115, whereas JP Morgan has maintained an overweight rating with a target price of Rs 110. However, Citi has maintained a sell call but has raised the target price to Rs 80 from Rs 65.

Samvardhana Motherson's share price history

Samvardhana Motherson's stock has given a positive return of over 20 per cent in the last 12 months (from August 11, 2022). In comparison, the headline index Nifty 50 has rallied nearly 11 per cent. The company has a market cap of 67,76,421.37 lakh, as per data available on the NSE.

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