Samvardhana Motherson International First Take: A strong 4QFY26 beat across the board; all eyes on inflation trends for 1QFY27

研报英文原文证据摘录

Samvardhana Motherson International First Take: A strong 4QFY26 beat across the board; all eyes on inflation trends for 1QFY27

Amyn Pirani AC Asia Pacific Equity Research

(91-22) 6157-3583 20 May 2026 J P M O R G A N

amyn.pirani@jpmorgan.com

Investment Thesis, Valuation and Risks

Samvardhana Motherson International (Overweight; Price Target: Rs

135)

Investment Thesis

SAMIL is a global auto component supplier of polymers (bumpers, instrument and door

panels), mirrors and wiring harnesses and is also entering non-auto segments. SAMIL was

in a capex cycle prior to COVID-19 and has suffered low utilizations due to global supply

chain challenges. We rate the stock OW.

Valuation

Our Mar-27 price target of Rs135 is based on a one-year forward P/E multiple of 22x (a slight

premium to the 5yr/10yr average P/E multiple).

Risks to Rating and Price Target

Key downside risks include:

• A slower-than-expected global light vehicle recovery: Light vehicle sales are 13%

below peak globally and 20-30% below peak in the EU and NA. We expect a recovery

over the next few years as demand gradually improves and supply chain challenges are

resolved. A continued slowdown in global light vehicle sales would be a risk to our

revenue forecasts.

• Market share losses and execution challenges: SAMIL operates in the segments of

polymers, mirrors and wiring harness, as well as the non-auto segments of aerospace.

If the company loses market share among its OEM customers or faces delays in the

ramp-up of orders, it could lead to downward risk to our revenue and margin forecasts.

• Large acquisitions done at premium valuations: If the company undertakes large

acquisitions at an expensive valuation, that could lead to a delay in the ROCE

improvement and de-leveraging cycle.