Buy Samvrdhna Mthrsn Intl: IIFL Securities's Target Price Rs 139

IIFL Securities maintains a "buy" recommendation for Samvrdhna Mthrsn Intl, with a price target of Rs 139, offering an upside potential of approximately 6.3%. At the current market price of Rs 130.55, this implies a potential return of around 6.3%. The recommendation is based on the company's strong fundamentals, including its extensive distribution network and a robust product portfolio. IIFL Securities expects the company to continue to benefit from the growing demand for maternity and childcare products in India.

About Samvrdhna Mthrsn Intl:

Samvrdhna Motherson International Limited (SAMIL) is an Indian multinational automotive component supplier headquartered in Noida, Uttar Pradesh. It is the flagship company of the Motherson Group, one of the largest auto ancillary companies in the world. SAMIL manufactures a wide range of automotive components including mirrors, bumpers, wiring harnesses, interiors, and lighting systems. The company has a global footprint with operations in over 40 countries and a workforce of over 135,000 employees. It is listed on the National Stock Exchange of India (NSE) under the symbol "SAMIL".

52 Week Price Trend:

Samvardhana Motherson International (SAMIL) currently trades at Rs 130.55, having reached a 52-week high of Rs 123.45 and a low of Rs 61.8. Despite a modest gain of 5.79% in the past year, SAMIL's stock price has exhibited significant volatility within its 52-week range. This wide range suggests a period of uncertainty and potential market fluctuations, indicating that investors should exercise caution and closely monitor the company's performance and market conditions before making any investment decisions.

Stratzy's MOST Analysis:

MOTHERSON has received a BBB rating from Stratzy's MOST Framework, indicating medium fundamental risks. This assessment considers the company's Management, Outlook, Safety, and Trend. While the overall risk is moderate, the company's financial health, management team, and industry outlook are likely to be positive. However, investors should be aware of potential areas of concern related to the company's operations, market conditions, or regulatory environment.

Company's Fundamentals:

Samvardhana Motherson International Ltd. (MOTHERSON) trades on the National Stock Exchange (NSE) with a current stock PE ratio of 48.69, indicating it is relatively expensive compared to companies in its industry. Its PB ratio of 3.47 suggests that the company's market value is 3.47 times its book value, implying that investors are willing to pay a premium for its assets. However, MOTHERSON's dividend yield of only 0.56% is relatively low, which may be a concern for income-oriented investors seeking dividend returns.

Fundamental and Technical information provided in this blog were last updated on 26 Apr, 2024

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