Samvardhana Motherson International rose almost 3 per cent in the morning trade on BSE on Friday, a day after the company reported its June quarter scorecard. The stock opened at ₹98.51 against the previous close of ₹95.83 and rose 3 per cent to the intraday high of ₹98.66 on BSE in Friday's trade so far. The stock ended 2.77 per cent lower on Thursday after the auto components maker announced its June quarter scorecard.
In the last three months, shares of Samvardhana Motherson have gained over 22 per cent while the BSE Sensex has gained just 6 per cent in the same period. The stock traded 1.79 per cent higher at ₹97.55 around 9:50 am on BSE. The rise in stock price on Friday morning could be attributed to positive reviews by brokerage firms after the company's Q1 numbers.
Samvardhana Motherson on Thursday said its consolidated net profit jumped over four-fold to ₹601 crore for the first quarter ended June 30, 2023. The company had reported a net profit of ₹141 crore for the April-June quarter of last fiscal. Total revenue from operations rose to ₹22,462 crore in the June quarter as against ₹17,654 crore in the year-ago period, the company said in a regulatory filing.
Most brokerage firms appear positive about the stock as they maintained their earlier views on it after the June quarter results. Brokerage firm Motilal Oswal Financial Services maintained a buy call on the stock with a target price of ₹115, implying a 20 per cent upside potential in the stock prices. The brokerage firm believes the company should continue to benefit substantially from easing supply-side issues and receding cost headwinds, leading to strong growth and balance sheet deleveraging.
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