Samvardhana Motherson shares surge over 4% after Q1 PAT jumps 65% YoY. Should you buy, sell or hold?
Samvardhana Motherson International (SAMIL) surged 4.5% to day’s high of Rs 188.75 on BSE after reporting a 65% year-on-year (YoY) jump in consolidated net profit to Rs 994 crore for the June quarter of FY25.
The company's revenue increased by 29% YoY to Rs 28,868 crore for the period under review, compared to Rs 22,462 crore in the same quarter of FY24.
On a sequential basis, net profit was down 27.5% from Rs 1,371.8 crore posted in the preceding March quarter. Revenue, however, surged 6.7% QoQ from Rs 27,058 crore in the March 2024 quarter.
Here is what brokerages say:
JP Morgan: Overweight| Target price: Rs 195
JP Morgan maintained an overweight rating on the stock and has hiked the target price to Rs 195 from Rs 165.
Strong momentum across businesses was seen while Investment in growth continued.
The global brokerage firm expects SAMIL to witness robust revenue growth — FY24-27 CAGR of 13%. The company is maintaining a healthy balance between leverage, ROCE and growth capex.
Also read: SJVN shares jump 9% on 31% YoY jump in Q1 profit
Nuvama: Buy| Target price: Rs 220
Considering the subdued outlook for global light vehicles and input/logistics cost pressures, Nuvama has reduced its FY25–27E EBITDA by 4% each. However, they are constructive on SAMIL’s prospects on the back of its strong management capabilities, inorganic initiatives, pending orders and increasing content due to remiumisation/electrification.
Motilal Oswal: Buy| Target price: Rs 218
Given its well-diversified presence across
