IIFL Research's Market Watch: Buy Samvrdhna Mthrsn Intl with Target ₹ 128

IIFL Research has buy call on Samvrdhna Mthrsn Intl at current market price of Rs 112. The target price of Samvrdhna Mthrsn Intl is Rs 128.

About Samvrdhna Mthrsn Intl:

Samvrdhana Motherson International (SAMIL) is a leading automotive component manufacturer listed on the National Stock Exchange (NSE) in India. With a global presence, the company operates in over 40 countries and produces a wide range of automotive components, including electrical distribution systems, interior systems, automotive mirrors, and module assemblies. SAMIL has a diverse customer base, including major automotive OEMs such as Volkswagen, BMW, and Ford, among others. The company has a strong focus on innovation and technology, and its products are known for their high quality and reliability. SAMIL has a robust financial profile with consistent revenue growth and profitability over the years.

52 Week Price Trend:

Motherson Sumi Systems Limited (MOTHERSON), a global automotive component supplier, has exhibited significant volatility in its stock price over the past year. Its current market price (CMP) stands at Rs 112.52, within the range of its 52-week high price of Rs 123.45 and low price of Rs 61.8. The stock has faced headwinds lately, with macroeconomic uncertainties, supply chain disruptions, and a slowdown in the automotive sector affecting its performance. However, given its strong market position, diversified product portfolio, and global presence, MOTHERSON remains a long-term growth prospect for investors seeking exposure to the automotive sector.

Stratzy's Analysis:

MOTHERSON has been rated BBB by Stratzy's MOST framework, indicating medium fundamental risks. Management, Outlook, Safety, and Trend are evaluated to assign this rating, where BBB falls within the "Medium Risk" category. This suggests that while MOTHERSON may have some areas of concern, it is not considered to have extremely high fundamental risks.

Company's Fundamentals:

Samvardhana Motherson International (MOTHERSON) is currently trading at a stock PE (price-to-earnings) ratio of 48.69, indicating that investors are willing to pay 48.69 times the company's annual earnings for each share of stock. The PB (price-to-book) ratio of 3.47 suggests that the market value of MOTHERSON's stock is 3.47 times higher than its book value, which represents the value of its assets minus liabilities. Additionally, the dividend yield of 0.56% implies that investors can expect to receive 0.56% of the stock's current market price as annual dividend payments.

Fundamental and Technical information provided in this blog were last updated on 13 Mar, 2024

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