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Samvardhana Motherson International Ltd. shares jumped nearly 3 percent in intra-day trade on Wednesday after brokerage firm Motilal Oswal initiated a ‘buy’ rating on the stock.

Motilal Oswal recommended investors buy the shares of the auto ancillaries company with a price target of Rs 95 apiece.

It said Samvardhana Motherson was well-placed to benefit from easing supply issues. Moreover, the company is a big beneficiary of global mega trends emerging in the automotive industry, the brokerage firm added.

Motilal Oswal pointed out that Samvardhana Motherson has weathered a storm over the last two-to-three years and now trades at a reasonable valuation. The brokerage firm expected good growth across the company’s businesses despite commodity cost deflation.

Earlier this month, ICICI Securities also maintained its ‘buy’ rating on the stock with a target price of Rs 74.

Explaining the rationale behind the rating, ICICI Securities said that Samvardhana Motherson International is targeting to treble its revenue to $36 billion in the next 3-4 years through a mix of organic and inorganic growth, with 25 percent of the revenue mix aimed to come from the non-auto segment (currently it is sub-3 percent).

Shares of Samvardhana Motherson International Ltd. ended nearly 1 percent higher at Rs 70.15 on Wednesday.

(Edited by : Rukmani Krishna)