Should you buy, sell or hold Samvardhana Motherson shares? Here's how analysts view Q4 results

SAMIL share price target, SAMIL share price today: Samvardhana Motherson International Ltd (SAMIL) shares were in the spotlight following mixed global brokerage reactions after the auto components maker posted its March quarter results. Samvardhana Motherson shares closed at Rs 152.35, up 3.15 per cent on NSE.

SAMIL share price target: Should you buy, sell or hold Samvardhana Motherson shares? 

CLSA has downgraded Samvardhana Motherson International to sell from outperform. However, the brokerage has raised the target to Rs 130 apiece from Rs 126 apiece. The global brokerage has downgraded the counter as they believe the stock is trading at an expensive valuation and there is likely to be a slowdown in the European auto industry. 

Morgan Stanley has maintained an overweight rating on the counter. The brokerage has increased conviction in an earnings turnaround, which should support re-rating. The brokerage has raised the target to Rs 176 apiece from Rs 133 apiece earlier.

"Incremental earnings support is likely to come from the integration of acquisitions, sharp non-auto growth, & improvement in the balance sheet," the brokerage noted.  

Nomura has retained a buy call with a raised target of Rs 165 apiece from Rs 133 apiece. According to the brokerage, Q4 was in line. Integration of acquisitions is likely to drive strong earnings growth in FY25-26F. 

"Management commentary: EU & NA markets are 10-15% below pre-COVID levels, but emerging markets are driving growth," the brokerage said in its note. The brokerage has raised FY25-26F EPS by 5-8 per cent. 

Citi has retained a sell call with a target of Rs 85 apiece. Citi stated the following key points

• 4Q ahead of estimates, boosted by large lumpy FX gains and contributions from customers
• Outlook positive, & boosted by the healthy performance of recently acquired companies
• Global geopolitical uncertainty and slower growth in hybrids/EVs key challenges

Samvardhana Motherson Q4 results: How did the firm fare in March quarter?

On Wednesday, Samvardhana Motherson posted a two-fold jump in consolidated net profit to Rs 1,444 crore for the fourth quarter ended March 2024. Total revenue from operations rose to Rs 27,058 crore for the period under review as compared to Rs 22,517 crore in the last quarter of FY23. For the year ended on March 31, 2024, the company reported a net profit of Rs 3,020 crore as against Rs 1,670 crore in FY23. Total revenue from operations rose to Rs 98,692 crore in FY24 over Rs 78,788 crore in FY23.

Management Commentary 

Motherson Chairman Vivek Chaand Sehgal said the company has maintained a healthy financial position by keeping leverage and debt under control.

"Our automotive booked business of over USD 83.9 bn provides strong revenue visibility. We also foresee good traction from our non-automotive businesses, such as aerospace, consumer electronics, and health and medical," he added.

To fully utilise manufacturing capabilities, the group is setting up new facilities across emerging markets, Sehgal said.

Samvardhana Motherson dividend

Samvardhana Motherson has approved a dividend of 80 paise per share of face value of Re 1 each for the financial year ended on March 31, 2024.

(with PTI inputs)

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