Jefferies has retained a Buy call on Samvardhana Motherson with a target price of ₹180, even as the company reported a weak Q4. EBITDA fell 10% YoY, coming in 11% below estimates, led by margin pressure.
EBITDA margins contracted by 4.3 percentage points YoY in polymers and 1ppt in vision and integrated assemblies. Jefferies noted that amid a tough macro environment, the company is aggressively expanding its non-auto business, particularly in electronics.
The company is also investing in glass manufacturing and is setting up new plants to produce components for semiconductor equipment and PCBA for autos. Jefferies has revised its FY26–27 EPS estimates lower by 14–19%.
Disclaimer: The views and target prices mentioned in this article are as stated by Jefferies. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
