The shares of Samvardhana Motherson International Limited tanked by 8 per cent till the afternoon on Tuesday and were trading at its 52-week low of Rs 63.30. In the last five days, the shares have declined by 12 per cent.
In the span of a month, the stock has shed approximately 22 per cent and so far this year it has declined by 58 per cent YTD.
Emkay Global has cut its target price on the stock from Rs 95 to Rs 90 but has a ‘Buy’ rating on the stock which represents an upside of 41% from the current levels.
According to the brokerage, the company will report low revenue growth in the September quarter due to its notable overseas exposure.
In Q1FY22, the company reported total revenue of Rs 17,614 crores which was an increase from Rs 16,157 crores in the same quarter a year earlier. In the period, their consolidated net profit stoic at Rs 180 crores which declined from Rs 426 crores Year on Year (YoY).
The company has a market capitalization of Rs 43,640 Crores and a dividend yield of 1.01 per cent as of October 18th, 2022. The promoters hold a 68.16 per cent stake in the company and have pledged a 1.12 per cent stake.
Samvardhana Motherson (formerly known as Motherson Sumi Systems Limited) is an Indian manufacturer of wiring harnesses, plastic components, and rearview mirrors for passenger cars.
Written by Anoushka Roy
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