Samvardhana Motherson International shares fell 3.8% to an intraday low of INR 121.35 on the BSE in Monday's trade after brokerage firms cut the stock’s target price to as low as INR 144 after the company reported its Q3FY25 results.

The firm posted a net profit of INR 879 crore for Q3 FY25, up 62% from INR 542 crore in the same quarter last year.

Revenue from operations rose nearly 8% year-on-year (YoY) to INR 27,666 crore, compared to INR 25,644 crore in Q3 FY24. EBITDA improved to INR 2,776 crore, while expenses increased 7% to INR 26,559 crore. The company's net profit margin expanded to 3.6% from 2.5% a year ago.

"Our performance demonstrates the resilience and adaptability of our diversified business model," Motherson Chairman Vivek Chaand Sehgal said.

The company remains focused on maintaining a strong balance sheet with control on capex and leverage ratio, he added.

However, despite a healthy Q3 show, the stock attracted target price cuts from various brokerage firms after the Q3 results:

Jefferies: Buy| Target price: INR 185
Jefferies maintained a ‘Buy’ rating on Samvardhana Motherson but has reduced the target price to INR 165 from INR 185.

The company’s EBITDA margins have come above estimates despite challenges in the global automotive environment. Samvardhana Motherson is actively expanding its exposure to non-automotive segments such as electronics and space. Additionally, the company is exploring inorganic growth opportunities through attractive valuations. However, Jefferies has also cut its FY25 EPS estimates by 9%.

Motilal Oswal: Buy| Target price: INR 160
Motilal Oswal has maintained a ‘buy’ rating on the stock with a revised target price of INR 160.

The brokerage firm expects the company to continue to outperform global automobile sales, fueled by rising premiumization and EV transition, a robust order backlog in autos and non-autos, and the successful integration of recent acquisitions.

However, factoring in the demand slowdown in key regions, Motilal Oswal has lowered its FY26E EPS by 15% and largely maintained FY25E EPS. The strong 3Q performance demonstrates the company’s business resilience and should help allay

these concerns. After the correction, SAMIL is attractively valued at 21.3x/18x FY26E/FY27E consolidated EPS.

HDFC Securities: Add| Target price: INR 144
HDFC Securities has maintained an ‘add’ rating on the stock with a reduced target price of INR 144.

The management of Samvardhana Motherson is seeking to ramp up its non-automotive segments, led by the consumer electronics and aerospace divisions. The production schedules of global OEMs, particularly premium OEMs, remain volatile as they recalibrate their production strategies in response to demand and market trends.

However, the company’s diversification into growing non-automotive segments is gradually reducing the overall cyclicality of its business. The balance sheet has strengthened, supported by the recent Qualified Institutional Placement (QIP), with the leverage ratio at its lowest level in the past 10 years.

Nuvama: Buy| Target price: INR 166
Nuvama reiterated its ‘buy’ call on the stock, however, lowered its target price to INR 166 from an earlier INR 194.

Considering the muted outlook for North America and Europe for FY26E, analysts at Nuvama have cut Samvardhana Motherson's FY25E–27E EPS estimates by 4–7%. Following this revision, they are projecting a revenue and earnings CAGR of 6% and 16%, respectively, for FY25–27E.

The domestic brokerage firm remains constructive on the company’s prospects, driven by strong management capabilities, ongoing inorganic initiatives, a robust pending order book, and increasing content in its offerings.