
Samvardhana Motherson share price rallied as much as 4% on Wednesday, February 11, extending its winning streak to the third day in a row after Q3 results for FY26. The auto ancillary stock hit a 52-week high of ₹135.83 per share in trade today.
The stock has surged nearly 17.32% in a month and 49% in six months. Zooming out further, Samvardhana Motherson shares have given 57% returns in the last year and multibagger returns of 269,840% since its listing.
Auto components maker Samvardhana Motherson International on Tuesday posted a 9% year-on-year (YoY) increase in consolidated net profit to ₹1,072.27 crore for the December quarter (Q3FY26), compared with ₹984.35 crore in the corresponding period last year.
The company’s total consolidated revenue from operations grew 13.5% YoY to ₹31,409.39 crore, up from ₹27,665.92 crore in Q3FY25. It said the quarter marked its highest-ever revenue performance, achieved despite ongoing market uncertainties.
“This quarter is a significant step towards reaffirming Motherson's position as a global design, engineering, manufacturing, assembly and logistics specialist. Customer trust, combined with our diverse capabilities, traction across automotive and non-automotive businesses, and the dedication of our global teams, has resulted in our highest-ever quarterly revenues," said Vivek Chaand Sehgal, Chairman, Motherson.
Capital expenditure for the quarter stood at ₹1,594 crore (52% of EBITDA), largely directed toward upcoming greenfield projects and maintenance activities.
With a net leverage ratio of 1.1x, the company said that it has maintained its leverage levels despite ongoing growth investments and elevated working capital requirements, while actively undertaking measures to reduce debt.
Brokerage firm ICICI Securities has maintained its ‘buy’ rating on the Samvardhana Motherson stock, with a revised target price of ₹155, suggesting an upside potential of up to 20%.
“Samvardhana Motherson International’s operating performance was ahead of our estimate. Outlook for global LV volume is improving, led by new platform/model launches from global OEMs. This augurs well for SAMIL’s content growth and profitability. SAMIL’s well-diversified business model, strong customer relationship and powertrain agnostic portfolio position the company favourably, helping it navigate global uncertainties better vs. peers. Non-auto segments (led by consumer electronics and aerospace) are expected to continue their strong growth momentum, backed by rising order backlog. Acquisition remains another key lever to support growth,” the brokerage firm said in its report. It also raised EBITDA by 2-7% for FY26- 28E.
Meanwhile, brokerage Motilal Oswal has also reiterated a ‘buy’ rating, with a target price of ₹148 per share, saying that given the better-than-expected performance in 3Q despite adverse global macro, it has raised its earnings estimates by 6%/1% for FY26/FY27.
“While the ongoing tariff issue may lead to some near-term slowdown in some of its key geographies, we expect SAMIL to be the least impacted by these tariffs as it has all its facilities close to its customers and can effectively realign supplies as per customer needs. Further, this is likely to lead to industry consolidation, with players like SAMIL likely to emerge as key beneficiaries in the long run. Given the long-term growth opportunities, we reiterate our BUY rating with a revised TP of INR148, based on 24x Dec’27E EPS,” the firm said.
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Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes o...Read More
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