Samvardhana Motherson International Limited (NSE:MOTHERSON) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a good week for Samvardhana Motherson International Limited (NSE:MOTHERSON) shareholders, because the company has just released its latest yearly results, and the shares gained 3.3% to ₹153. Samvardhana Motherson International reported ₹1.1t in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹5.50 beat expectations, being 3.1% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the 21 analysts covering Samvardhana Motherson International are now predicting revenues of ₹1.23t in 2026. If met, this would reflect a notable 9.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 19% to ₹6.42. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹1.22t and earnings per share (EPS) of ₹6.71 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Samvardhana Motherson International

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 6.7% to ₹169, suggesting the revised estimates are not indicative of a weaker long-term future for the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Samvardhana Motherson International, with the most bullish analyst valuing it at ₹219 and the most bearish at ₹123 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. It's pretty clear that there is an expectation that Samvardhana Motherson International's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 9.2% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.7% annually. Factoring in the forecast slowdown in growth, it looks like Samvardhana Motherson International is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Samvardhana Motherson International. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Samvardhana Motherson International analysts - going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Samvardhana Motherson International that you should be aware of.

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