Indian auto parts maker Samvardhana Motherson beats quarterly profit estimates

Minda

13/08/2024 10:47

BENGALURU, Aug 13 (Reuters) - Indian auto parts maker Samvardhana Motherson International  SAMD.NS  reported a
better-than-expected profit for the first quarter on Tuesday, helped by a shift in customer preference to premium
vehicles and a revenue boost from recent acquisitions.
    The company, which supplies parts to automakers including Maruti Suzuki  MRTI.NS , Mercedes Benz and Audi, said
consolidated net profit rose 65.5% to 9.94 billion rupees ($118.42 million) in the three months ended June 30. 
    Analysts had expected a profit of 9.51 billion rupees, according to LSEG data.
    Total revenue from operations rose 28.5% to 288.68 billion rupees, beating estimates of 283.74 billion rupees.
    For further earnings highlights, click here. 
    
    KEY CONTEXT
    Auto parts makers such as Samvardhana Motherson are benefiting from an ongoing shift in customer preference to
premium vehicles such as SUVs that require more ancillary parts.
    Samvardhana Motherson, which makes products like bumpers and mirrors for vehicles, also got a revenue boost from
its acquisitions of Dr. Schneider Group, Yachiyo, AD Industries and Lumen.
    Total expenses, meanwhile, rose 27.6% to 276.02 billion rupees for the quarter, driven by higher prices of key raw
materials like aluminium, lead and copper.
    
    PEER COMPARISON  
    
                                        Valuation (next   Estimates (next 12        Analysts' sentiment            
                                          12 months)           months)                                         
                              RIC         PE     EV/EBI   Revenue     Profit    Mean     # of      Stock to      Div
                                                  TDA      growth     growth   rating*  analyst     price       yield
                                                                                           s       target**      (%)
 Samvardhana Motherson      SAMD.NS      27.06   11.34     16.53      45.65      Buy      19         1.09        0.43
         Bosch              BOSH.NS      42.52   34.81     10.02      23.57     Hold       4         1.14        1.17
   Minda Corporation        MINC.NS      34.03   17.97     15.28      35.72      Buy       4         0.97        0.27
 * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT
    
    APRIL-JUNE STOCK PERFORMANCE     
    
 -- All data from LSEG IBES
 -- $1 = 83.9360 Indian rupees

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Samvardhana Motherson    https://tmsnrt.rs/3SMh265
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 (Reporting by Meenakshi Maidas in Bengaluru; Editing by Devika Syamnath)
 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))