CLSA retained outperform ratings on companies like Samvardhana Motherson
CLSA has retained its “Outperform” rating on Samvardhana Motherson International Ltd, highlighting strong revenue growth prospects driven by both automotive and non-automotive segments. Despite global market challenges, the company has doubled its bottom-line recently and aims for a 5x revenue increase over the next five years while maintaining a robust return on capital employed (RoCE) of 40%. CLSA also maintained a “High Conviction Outperform” rating on Bandhan Bank with a target price of ₹220, reflecting cautious optimism on asset quality recovery and loan growth supported by the bank’s strategic shift to secured loans and improving CASA ratio. This balanced outlook underscores CLSA’s confidence in the growth potential and risk management of both companies through FY26.
LSA has reaffirmed its “Outperform” rating on Samvardhana Motherson International Limited (SMIL), underscoring a strong outlook for the company’s revenue growth and profitability. CLSA notes that SMIL has achieved an impressive doubling of its net profit recently, driven by robust performance in both automotive and non-automotive sectors. The company's diversified business model and strategic acquisitions have positioned it well to target a five-fold increase in revenues over the next five years. CLSA anticipates SMIL’s return on capital employed (RoCE) to stabilize around an attractive 40%, reflecting efficient capital utilization and strong cash flow generation despite ongoing global supply chain challenges and macroeconomic uncertainties. This positive rating rests on SMIL's sustained execution capabilities and leadership in the automotive components industry along with promising expansion in adjacent sectors like mobility and smart technologies.
Regarding Bandhan Bank, CLSA maintains a “High Conviction Outperform” rating with a target price of ₹220, driven by cautious optimism about the bank’s asset
quality and loan growth recovery. The brokerage highlights Bandhan Bank’s strategic shift towards secured loan segments, which are expected to contain credit
costs and improve risk management. The bank’s focus on increasing the proportion of low-cost Current Account Savings Account (CASA) deposits is also seen as a
positive factor for sustaining net interest margin (NIM) expansion and profitability. CLSA recognizes some lingering concerns on loan book quality, especially
in microfinance and unsecured retail segments, but believes recent management actions and improving macro conditions will facilitate asset quality stabilization
and gradual growth. The balanced outlook reflects a combination of cautious risk mitigation alongside confidence in Bandhan Bank’s ability to leverage its strong retail
franchise and deepen penetration in urban and semi-urban markets.
Together, CLSA’s ratings highlight a dual narrative of robust growth opportunities at Samvardhana Motherson alongside prudent optimism on the credit profile and operational
turnaround at Bandhan Bank. These views reflect confidence that both companies are well-positioned to deliver solid returns and navigate near-term challenges through
FY26 and beyond, making them attractive stocks for investors seeking disciplined growth exposure in Indian midcap and banking sectors.
LSA has reaffirmed its “Outperform” rating on Samvardhana Motherson International Limited (SMIL), underscoring a strong outlook for the company’s revenue growth and profitability. CLSA notes that SMIL has achieved an impressive doubling of its net profit recently, driven by robust performance in both automotive and non-automotive sectors. The company's diversified business model and strategic acquisitions have positioned it well to target a five-fold increase in revenues over the next five years. CLSA anticipates SMIL’s return on capital employed (RoCE) to stabilize around an attractive 40%, reflecting efficient capital utilization and strong cash flow generation despite ongoing global supply chain challenges and macroeconomic uncertainties. This positive rating rests on SMIL's sustained execution capabilities and leadership in the automotive components industry along with promising expansion in adjacent sectors like mobility and smart technologies.
Regarding Bandhan Bank, CLSA maintains a “High Conviction Outperform” rating with a target price of ₹220, driven by cautious optimism about the bank’s asset
quality and loan growth recovery. The brokerage highlights Bandhan Bank’s strategic shift towards secured loan segments, which are expected to contain credit
costs and improve risk management. The bank’s focus on increasing the proportion of low-cost Current Account Savings Account (CASA) deposits is also seen as a
positive factor for sustaining net interest margin (NIM) expansion and profitability. CLSA recognizes some lingering concerns on loan book quality, especially
in microfinance and unsecured retail segments, but believes recent management actions and improving macro conditions will facilitate asset quality stabilization
and gradual growth. The balanced outlook reflects a combination of cautious risk mitigation alongside confidence in Bandhan Bank’s ability to leverage its strong retail
franchise and deepen penetration in urban and semi-urban markets.
Together, CLSA’s ratings highlight a dual narrative of robust growth opportunities at Samvardhana Motherson alongside prudent optimism on the credit profile and operational
turnaround at Bandhan Bank. These views reflect confidence that both companies are well-positioned to deliver solid returns and navigate near-term challenges through
FY26 and beyond, making them attractive stocks for investors seeking disciplined growth exposure in Indian midcap and banking sectors.