Samvardhana Motherson shares are a buy or sell after 8% fall? Here's what analysts said

Shares of Samvardhana Motherson Ltd . are down over 8% on Friday, November 6, after its September quarter results, which were reported during market hours on Thursday. Despite the fall, over 80% of the 26 analysts who have coverage on Samvardhana Motherson, have a "buy" recommendation on the stock. CLSA Gives Highest Price Target For SAMIL CLSA maintained its "outperform" rating on Samvardhana Motherson and raised its price target to ₹217 from ₹190 earlier.

This has now become the highest price target on the street for the stock. The revised price target implies an upside potential of 42% from current levels. A gradual ramp-up in the non-auto business, particularly in consumer electronics, will drive Samvardhana Motherson's organic growth to grow at a Compounded Annual Growth Rate (CAGR) of 12% over financial year 2027-2029, along with steady execution in the automotive segment, CLSA wrote in its note.

Over and above this, CLSA still sees a scope for inorganic growth, considering the leverage ratio being at 0.5x and the management being comfortable till it gets to 2.5x levels. JPMorgan Also Overweight On Samvardhana Motherson The global investment banking firm ascribed a price target of ₹205 on the stock after its results. The financial year 2027-2029 revenue and EBITDA numbers are broadly unchanged from JPMorgan's end as it builds in a ramp-up of acquisitions as well as an expansion in margins from the second half of financial year 2027.

AS a result, JPMorgan has raised Samvardhana Motherson's Earnings per Share (EPS) estimates for financial year 2027-2029 by 1% to 4%. As many as six out of the 26 analysts covering the stock expect it to test levels of ₹200 or more in the coming 12 months. 21 out of the 26 analysts have a "buy" rating, two say "hold", and three have a "sell" rating on the stock. How Did Samvardhana Motherson Fare In Q2?

Samvardhana Motherson's September quarter revenue grew 27% from last year to a record ₹38,280 crore, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter grew by 23% year-on-year. EBITDA margin remained steady at 8.8% from 9% last year. Order book at the end of the quarter also reached a record high of $106 billion.

Excluding the acquisition impact, margins of the company improved both year-on-year and sequentially. Shares of Samvardhana Motherson are trading 8.5% lower on Friday at ₹153.87. The stock is still up 26% so far for the year.

Tags Home / Market News / Samvardhana Motherson shares are a buy or sell after 8% fall? Here's what analysts said

Source: CNBC TV18