Samvardhana Motherson (SAMIL) has received a Buy rating with a revised target price of ₹163, representing a potential upside from the current market price of ₹144.15. According to reports from The Hindu BusinessLine, the brokerage has set the target price based on 25x March 2028 EPS, reflecting confidence in the company's growth trajectory and diversification strategy.
The company demonstrated robust financial performance in FY26, with booked business reaching approximately $96 billion, compared to $87.2 billion in September 2025 and $88.1 billion in March 2025. As reported by The Hindu BusinessLine, this growth was supported by new programme ramp-up, greenfield additions, and accelerating non-auto contributions, positioning the company well for sustained growth in FY27.
The non-auto segments showed exceptional performance, with consumer electronics achieving EBITDA positive status in Q4 and business already achieving projected annual capacity from two plants. According to the brokerage report, an upcoming mega new plant (GF3) in Q3FY27 is expected to have upstream capabilities leading to further margin expansion. The aerospace segment recorded impressive growth of about 40% year-on-year in FY26, reaching ₹2,460 crore compared to ₹1,750 crore in FY25, with EBITDA margins improving to 8.3% from 7.3%.
The company's diversification across high-growth emerging markets now accounts for more than 50% of revenues, adding significant resilience to its business model. As reported by The Hindu BusinessLine, this geographic diversification strategy complements the company's core businesses across wiring harnesses, vision systems, and modules/polymers, which continue to retain meaningful white-space opportunities in the market.
The brokerage expects revenue/EBITDA/PAT CAGR of 9.5-14% for the company, with key growth drivers including scale-up of non-auto businesses and deeper integration into Japanese OEMs. According to the report, the stock is currently trading at 25.5x/21.7x FY27/FY28 consolidated EPS, with the revised target price of ₹163 reflecting the company's strong fundamentals and growth prospects in the diversified automotive components sector.
