Shares of Samvardhana Motherson International (SAMIL) jumped over 2% in early morning trade after CLSA reiterated its outperform rating on the stock and raised its target price to ₹124. As of 9:32 AM, the shares were trading 2.17% higher at Rs 106.96.
The brokerage highlighted the company’s ambitious growth plans, including a target to quintuple revenues over the next five years while maintaining a long-term return on capital employed (ROCE) target of 40%.
Despite a stagnant global auto market, SAMIL has more than doubled its bottom line, signaling robust operational efficiency. The company is now expanding into non-auto sectors, identifying aerospace, electronic systems, car assembly, logistics, semiconductors, renewables, and medical equipment as key growth drivers.
CLSA noted that SAMIL has historically prioritized capital efficiency and plans to continue the same strategy, ensuring ROCE remains uncompromised for both organic and inorganic growth. The company is also expected to maintain a prudent capital structure and focus on business diversification, making it an attractive investment in the evolving global supply chain landscape, despite broader macroeconomic challenges.
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