After the results of Samvardhan Motherson International Limited (NSE: MOTHERSON), the stock is seeing a rise today. The company’s management said that the company has benefited a lot from expansion in non-automotive business. Brokerages seem bullish on this stock which is giving bumper returns.
Jefferies Brokerage Firm – BUY Rating
Jefferies brokerage firm has given ‘BUY’ rating to the stock of Sanvardhan Motherson and advised to buy it, along with a target price of Rs 215. Jefferies believes that there is a possibility of improvement in the company’s profits in the second session as the company will reduce the burden of expenses on its customers. However, Jefferies has cut the company’s EPS estimate by 9-16% for FY 2025-27, but expects EPS to grow at a CAGR of 32% in FY 2024-27.
Morgan Stanley Brokerage Firm – Overweight Rating
Morgan Stanley has given overweight rating to Samvardhan Motherson and a target price of Rs 193. He said the company’s second-quarter EBITDA came in 13% below his forecast, but benefited from growth in auto volumes and a strong balance sheet in the non-auto business.
CLSA Brokerage Firm – Target Price
CLSA has upgraded the rating of Sanvardhan Motherson and given a target price of Rs 190. CLSA said margin cuts have impacted EBITDA by 106 basis points.
Nomura Brokerage Firm – Target Price
Nomura has given ‘BUY’ rating to Sanvardhan Motherson with a target price of Rs 215. He said that expansion in the consumer electronics sector will be helpful in the company’s growth. Of the company’s 19 greenfield projects, 5 have been commissioned and 8 will be started in the second half of the year. Nomura expects good margins and growth in H2.
Stock gave 200362% return
Samvardhana Motherson stock has given a return of 28.50% in the last 6 months. The stock has given a return of 78.56% in the last 1 year and 78.60% in the last 5 years. This stock has provided 200,000% returns to long term investors.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.