Nomura has reiterated its buy rating on Samvardhana Motherson, setting a target price of ₹209, implying a 28% potential upside from the current market price (CMP) of ₹163.90. The brokerage expects the ramp-up in consumer electronics to support the company’s growth trajectory.
Nomura notes that while delayed launches and China-based original equipment manufacturers (OEMs) gaining market share have impacted growth, Samvardhana Motherson is positioned for improvement. Five out of 19 planned greenfield plants are now operational, with eight more expected to come onstream in the second half of FY24. The company has already absorbed upfront costs, which Nomura believes will contribute to better growth and margin performance in H2. Valuation is considered attractive at current levels.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult a financial advisor before making any investment decisions.
