Samvardhana Motherson Down 2%; Brokerages Trim Target Price Post Q3FY25 Earnings

Shares of Samvardhana Motherson were down by 3% on February 17 after brokerages downgraded the stock post its December quarter earnings.

While JPMorgan cut the target price to ₹160 from ₹190 apiece, Jefferies downgraded the stock at ₹165. Q3 results were in line with expectations, said JPMorgan highlighting that the near-term outlook for the sector seems to be soft. Calling the results decent in times of uncertainty, BofA Securities set a target price of ₹160 by giving a buy recommendation.

During the December quarter, the company reported a net profit of ₹879 crore, compared to ₹542 crore in the year-ago period. Revenue from operations surged by 35.1% YoY at ₹3,387.6 crore.

EBITDA margin soared to ₹2,776 crore during the December quarter, while expenses shot up by 7% at ₹26,559 crore.. EBITDA margin ballooned to 9.7% in Q3FY25 compared to 9.2% in Q3FY24. Meanwhile, net profit margin for the automotive component maker was up by 3.6% in the December quarter against the corresponding period of the previous year.

In an exchange filing company's Chairman, Vivek Chaand Sehgal said, “Our engineering, manufacturing and assembly capabilities will help us navigate challenges while delivering future growth. I am pleased to announce that our first plant for the consumer electronics business has been operationalised during the quarter, which will further strengthen our non-automotive businesses. We remain focused on maintaining a strong balance sheet with control on capex and leverage ratio.”