Samvardhana Motherson Share Price Remains Range-bound; See Analyst Views on Samvardhana Motherson

Samvardhana Motherson Share Price Remains Range-bound; See Analyst Views on Samvardhana Motherson

Samvardhana Motherson share price remained in a narrow range during the week as the stock was taking support from lower levels while selling pressure was witnessed at higher levels. Samvardhana Motherson could not break above Rs 100 levels during the week and high during the week remained Rs 98.15. We could see a breakout above Rs 100 levels in the upcoming week in case the markets remain positive.

In its latest research report published in August 2023, ICICI Securities has suggested BUY rating for Samvardhana Motherson with target price of Rs 114. As per ICICI Securities research report, “We retain BUY on SAMIL with a revised DCF-based target price of INR 114 (earlier: INR 98), implying ~19x FY25E earnings. Strong revenue growth was driven by a combination of end-industry growth on a low base, continued premiumisation resulting in rising value add per vehicle and increased execution of recently added orders, with no major impact of the recently concluded large deals in the numbers. From Q2, the impact of M&As would start getting reflected in the form of SAS coming in (CY22 revenue of ~EUR 900mn), and from FY25 close to EUR 1.4bn of M&A-driven revenue (Yachiyo, Dr. Schneider and CIRMA) would come in the consolidated numbers (we are yet to build-in those deals in our estimates).”

Motilal Oswal has price target of Rs 100 for Samvardhana Motherson and the target has been already met by the stock.

As a positive development in July 2023, Samvardhana Motherson (SAMIL) has entered into an agreement with Honda Motors to acquire 81% stake in Yachiyo Industry's 4W component business (Honda group currently owns 51% stake in it and is a publicly listed entity) for an equity consideration of Euro145mn, with the entity being net cash.

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