Samvardhana Motherson dividend at 40%! Analysts decode SAMIL Vision 2030, share targets

Samvardhana Motherson International Ltd (SAMIL) has laid out its ambitious Vision 2030, garnering attention from brokerages. The company aims for sales of $108 billion by 2030, with a compound annual growth rate (CAGR) of 33%. Analysts offered target prices for SAMIL stock, ranging from Rs 102 to Rs 118.

SAMIL Vision 2030's key highlights included a 40% return on capital employed (RoCE) and a dividend payout ratio of 40%. Up to 75% of revenue growth is expected from acquisitions, with SAMIL's plans to list more entities once they are self-sustainable, akin to Motherson Wiring.

SAMIL intends to transition from integrated assemblies to vehicle assembly by 2030. Aerospace sales are projected to grow 2.5 times by the end of the decade, supported by a $1 billion-plus order book. In consumer electronics, SAMIL plans to have plants operational by FY27 with a capital expenditure of Rs 2,600 crore.

Nomura India regards SAMIL's strategy positively, highlighting the company's risk management. "We maintain our target P/E of 19x (the mid-point of its historical trading band of 18-20x), which we apply to FY27-28F EPS to arrive at our target of Rs 116."

YES Securities suggested a 12-month target price of Rs 118 while ICICI Securities expects the stock to hit Rs 115 apiece going ahead.

IIFL Securities acknowledged global auto industry challenges but remains optimistic on SAMIL's targets. "Despite global auto industry struggling over FY20-25, Motherson Group grew 2.5x. Motherson has set aggressive targets for FY30: $108 billion revenue at 40% ROCE. Management sees significant growth opportunities in auto and non-auto," it said.

MOFSL supported SAMIL's growth via strategic listings, stating, "Given the rising scale, the management would look to unlock value by listing some of its key businesses separately, at an opportune time. Hence, despite the global headwinds, reiterate our Buy rating on SAMIL with a target price of Rs 114."

JM Financial highlights opportunities in non-automotive sectors like aerospace and consumer electronics. It maintains a Buy rating with a target price of Rs 110 for March 2027. "We have not updated our estimates and wait for execution progress before revising estimates."

Nuvama remains bullish on SAMIL, with a target price of Rs 110, based on revenue/earnings CAGR of 6%/11% from FY25 to FY28, driven by pending orders and inorganic growth. "The order book is large with booked business at USD88.1bn in Mar-25. Content per vehicle is likely to increase on the back of premiumisation and electrification in both domestic and overseas markets."

SAMIL's Vision 2030 highlighted its focus on acquisitions as a primary growth engine, predicting a 75% revenue contribution from such activities. The company plans expansions in automotive and non-automotive sectors, underscoring its diversification commitment.

SAMIL's strategic investment in consumer electronics, with facilities expected by FY27, aligns with its broader objective of enhancing product offerings and technology. The company's strategy of unlocking value through potential listings of key units offers promising prospects for growth. This approach is expected to mitigate some global economic challenges.

SAMIL's aerospace efforts, supported by a robust order book, mark a significant growth area with projections of a 2.5x sales increase by 2030. This sector is crucial to the company's strategy.