Excellent results... Orders continue to rise, stock price also rises today
Shares of auto-supporting companies saw a significant rise on Wednesday, as the company achieved strong growth in the third quarter.
One stock saw a significant rise on Wednesday, following its strong results. Experts have raised their target prices on the auto-supporting company's shares due to the company's strong performance in the December quarter.
Shares of Samvardhan Motherson International Limited (SAMIL) rose 5 percent in Wednesday's trading. SAMIL reported a strong third-quarter performance, with operating revenue increasing 13.5 percent year-on-year. This increase was driven by strong growth across several regions, the consolidation of Atsumitec, and some benefits from favorable currency exchange rates.
Emkay Global reported that SAMIL's EBITDA margin increased by 100 basis points to 9.7 percent compared to the previous quarter. This growth was driven by strong margin performance across all segments except wiring harnesses, while timing impacts impacted the cost of wiring harnesses being passed on to customers.
Company's Share Target
On Wednesday, the stock rose 4.82 percent on the BSE, reaching a record high of ₹135.70 per share. The brokerage raised its target price from ₹130 to ₹140. SAMIL is seeing strong growth in its consumer electronics business and plans to double its capacity with the help of ECMS subsidies.
Continuous Increase in Orders
Experts noted that SAMIL's aerospace order book is experiencing steady growth due to the launch of new products. The company is partnering with established global companies in the emerging semiconductor sector in India. Motilal Oswal said, "Given the better-than-expected performance in the third quarter despite the global economic crisis, we are increasing our earnings estimates for FY2026 and FY2027 by 6 percent and 1 percent, respectively."
Summary
We expect SAMIL to continue to outperform global automobile sales, driven by growing demand for premium products and the shift to electric vehicles, a strong order backlog in both the automobile and non-automobile sectors, and the successful integration of recent acquisitions.