Samvardhana Motherson International Limited (NSE:MOTHERSON) Released Earnings Last Week And Analysts Lifted Their Price Target To ₹123

Investors in Samvardhana Motherson International Limited (NSE:MOTHERSON) had a good week, as its shares rose 5.8% to close at ₹110 following the release of its quarterly results. Samvardhana Motherson International reported ₹302b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹0.78 beat expectations, being 4.0% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Samvardhana Motherson International's 21 analysts are now forecasting revenues of ₹1.24t in 2026. This would be a modest 6.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 24% to ₹3.85. In the lead-up to this report, the analysts had been modelling revenues of ₹1.24t and earnings per share (EPS) of ₹3.74 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Samvardhana Motherson International

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 9.2% to ₹123. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Samvardhana Motherson International, with the most bullish analyst valuing it at ₹140 and the most bearish at ₹85.03 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Samvardhana Motherson International's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Samvardhana Motherson International'shistorical trends, as the 14% annualised revenue growth to the end of 2026 is roughly in line with the 17% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.6% per year. So although Samvardhana Motherson International is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Samvardhana Motherson International's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Samvardhana Motherson International going out to 2028, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Samvardhana Motherson International you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.