SAMIL shares Vision FY30, targets $108 billion gross sales; should you buy stock?

Samvardhana Motherson International Ltd (SAMIL) has caught the attention of stock brokerages with its five-year revenue aspiration of $108 billion by FY30. The company’s recent performance, ongoing expansion into consumer electronics, and strong management execution have prompted analysts to reiterate their bullish stance on the counter.

Brokerage Emkay Global said the worst seems to be behind for SAMIL's core business and that a major foray into consumer electronics amid the bold vision for FY30 grants SAMIL a strong footing. 

Motilal Oswal Financial Services (MOFSL), another broking firm, said the management’s new five-year target underscores its aggressive growth vision. “We expect SAMIL to continue outperforming global auto sales, driven by increasing premiumization, the transition to EVs, and a robust order book across both auto and non-auto segments,” MOFSL noted.

This brokerage also highlighted that the company's strategic manufacturing footprint, with facilities located close to customers, should help it weather any near-term disruptions from global tariff concerns. This flexibility, MOFSL believes, could ultimately position SAMIL as a key beneficiary of industry consolidation. Reiterating its confidence in the company’s long-term prospects, MOFSL maintained a ‘Buy’ rating and revised its target price to Rs 175, based on 24 times FY27E EPS.

Echoing similar optimism, Nuvama Institutional Equities remained constructive on SAMIL’s future, supported by its experienced management team, strategic acquisitions, and rising order book. Nuvama marginally increased its EBITDA estimates for FY26 and FY27 by 2 per cent each, factoring in stronger revenue growth. The brokerage now expects SAMIL to deliver a 5 per cent revenue CAGR and a 17 per cent earnings CAGR between FY25 and FY27. “We retain our ‘BUY’ rating with a revised target price of Rs 175 (from Rs 166), based on a blended PE of 24x,” Nuvama said.

Meanwhile, Emkay Global pointed to SAMIL’s 8 per cent revenue growth in the recent quarter, though it acknowledged pressure on EBITDA due to challenging macro conditions and expansion investments. However, Emkay believes the company is turning a corner. 

It sees significant growth potential from SAMIL’s foray into consumer electronics manufacturing—particularly in mobile phone components, PCBA, and silicon wafer technologies—backed by strong vertical and backward integration. “The management’s vision of reaching $108 billion in group revenue by FY30, compared to USD25.7 billion in FY25, gives us further confidence in the company’s growth trajectory,” Emkay said. The brokerage upgraded its target price to Rs 180 (from Rs 150), a 20 per cent increase, and maintained its ‘BUY’ recommendation.

Samvardhana Motherson International Ltd (SAMIL) on Thursday reported a 23.43 per cent year-on-year decline in net profit to Rs 1,050.50 crore for the quarter, down from Rs 1,372 crore in the same period last year. The dip in profitability came despite a healthy rise in revenue, which increased 8.34 per cent to Rs 29,317 crore from Rs 27,058 crore a year ago.

Alongside its quarterly results, SAMIL unveiled a series of shareholder-friendly measures. The company declared a dividend of Rs 0.35 per share, announced a bonus issue in the ratio of 1:2 (one bonus share for every two shares held), and also recommended a plan to raise funds through non-convertible debentures (NCDs).

"The company remains focused on boosting FCF and lowering leverage, aligned with Vision 2030 targets of $108 billion revenue and 40 per cent ROCE. In Consumer Electronics, Plant 1 is operational with a ramp-up target of 15–17 Mn units by FY26-end, while Plants 2 & 3 remain on track to support vertical integration. We have a Buy rating on the stock with a target of Rs 203," said Arihant Capital Markets.