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517334: Future Leadership Transition Will Likely Pressure Share Price

EV Shift Will Squeeze Margins Though Emerging Markets Offer Respite

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517334
AnalystLowTarget
Not Invested
Published 15 Jun 2025

Update shared on 15 Dec 2025

Fair value Increased 19%
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AnalystLowTarget's Fair Value
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1Y
11.5%
7D
-2.2%

Analysts have raised their price target for Samvardhana Motherson International to ₹98.87 from ₹83.30, citing slightly stronger expectations for revenue growth, profit margins, and future valuation multiples, despite a marginally higher discount rate.

What's in the News

  • A special and extraordinary shareholders meeting is scheduled for December 21, 2025 via postal ballot in India, focusing on key corporate matters (company filing).
  • The resignation of Chief Financial Officer and Key Managerial Personnel Kunal Malani is effective November 14, 2025, as accepted by the Board on October 29, 2025 (company filing).
  • Gandharv Tongia has been appointed Group CFO and Key Managerial Personnel effective November 15, 2025, bringing over two decades of leadership experience across finance, transformation, and governance roles (company filing).
  • A Board meeting on October 29, 2025 considered a USD 0.5 million initial investment in Rider Dome Pte Ltd via wholly owned subsidiary MSSL (S) Pte Ltd for equity and optionally convertible secured notes (company filing).
  • A Board meeting is scheduled for November 13, 2025 to review and approve unaudited standalone and consolidated financial results for Q2 and the half year ended September 30, 2025, along with related limited review reports and a performance presentation (company filing).

Valuation Changes

  • The fair value estimate has risen moderately from ₹83.30 to ₹98.87 per share, implying a higher assessed intrinsic value for the stock.
  • The discount rate has increased slightly from 14.84 percent to 15.21 percent, reflecting a marginally higher required return or perceived risk.
  • The revenue growth assumption has risen modestly from about 5.35 percent to about 5.96 percent, indicating slightly stronger top-line expectations.
  • The net profit margin assumption has improved marginally from about 3.83 percent to about 3.94 percent, pointing to a small uplift in anticipated profitability.
  • The future P/E multiple has edged up slightly from about 29.4 times to about 29.8 times, suggesting a marginally richer valuation multiple being applied.

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