Samvardhana Motherson International: Resilient margins despite commodity inflation

研报英文原文证据摘录

J P M O R G A N

Asia Pacific Equity Research

07 August 2026

Samvardhana Motherson

International

Overweight

SAMD.NS, MOTHERSO IN

Price (06 Aug 26):Rs 155

Resilient margins despite commodity inflation

▲Price Target (Sep-27):Rs 170

Prior (Jun-27):Rs 145

SAMIL’s 1QFY27 operating results came in better than our expectations but were

broadly in-line with Bloomberg consensus expectations. Revenue grew 17% YoY

(+8% vs. JPMe/+2% vs. consensus) and EBITDA grew 26% YoY (+12% vs. JPMe/

+1% vs. consensus). We expect SAMIL to outperform underlying automotive

trends (FY26-29E revenue CAGR of 13%) driven by the ramp-up of new

acquisitions as well as new business wins in the Emerging segments (aerospace and

consumer electronics). The company closed two large acquisitions in July-2026

which should add revenues of ~US$2.1bn (SAMIL’s FY26 consolidated revenue

was ~US$13.2bn). We have increased our FY27-29E EPS by 5-15% to factor in

higher growth as well as better margins. Maintain OW with a revised price target

of Rs170 for Sep-27 (vs Rs145 for Jun-27). The stock trades at a FY28E P/E of

21.5x for FY26-29E EPS CAGR of 26%. SAMIL is our preferred pick within our

components coverage.

SAMIL’s 1QFY27 scorecard: Consolidated revenue of Rs352.4bn (+17%

YoY) was 8% above JPMe while EBITDA came in at Rs31.0bn (+26% YoY)

and was 12% above JPMe and 1% above consensus. EBITDA margins

improved 65bps YoY to 8.8% (JPMe at 8.5%). The revenue beat was primarily

driven by the Wiring Harness division, while the margin beat was driven across

all the segments except Emerging businesses. Adj. PAT at Rs10.3bn grew 59%

YoY (+36% vs JPMe and inline vs consensus). Interest costs came in slightly

higher than expected while other income was +36% vs. JPMe. Net debt/

EBITDA now stands at 0.8x in 1QFY27 (1.1x in 1QFY26).

Segmental performance: Wiring Harness revenue grew 30.6% YoY (19%

above JPMe) and margins came in at 11.1% (vs 11.0% JPMe) despite an

inflationary copper price environment. Revenue beat was also witnessed in

Modules & Polymer Products and Vision Systems. Margins also surprised for

these businesses, with Modules & Polymer Products at 6.9% (vs JPMe at 6.5%)

…