Buy Samvardhana Motherson International, target price Rs 100: Motilal Oswal

Motilal Oswal has buy call on Samvardhana Motherson International with a target price of Rs 100. The current market price of Samvardhana Motherson International Ltd. is Rs 80.4.

Samvardhana Motherson International Ltd., incorporated in the year 1986, is a Large Cap company (having a market cap of Rs 54753.48 Crore) operating in Auto Ancillaries sector.

Samvardhana Motherson International Ltd. key Products/Revenue Segments include Auto Electricals, Sale of services, Scrap, Other Operating Revenue, Export Incentives, Job Work for the year ending 31-Mar-2022.



Financials
For the quarter ended 31-12-2022, the company reported a Consolidated Total Income of Rs 20348.32 Crore, up 10.86 % from last quarter Total Income of Rs 18354.82 Crore and up 25.30 % from last year same quarter Total Income of Rs 16240.17 Crore. Company reported net profit after tax of Rs 514.79 Crore in latest quarter.


Investment Rationale
The stock trades at reasonable valuations at 20.5x/15.3x FY24E/FY25E consolidated EPS. With high operating leverage, reasonable financial gearing and no risk of EVs, MOTHERSON is preferred pick in the auto component industry

Promoter/FII Holdings
Promoters held 68.16 per cent stake in the company as of 31-Dec-2022, while FIIs owned 8.24 per cent, DIIs 11.95 per cent.