Near term demand concerns ahead for Samvardhana Motherson's stock

While the brokerage is watchful of global growth slowing down, it expects inorganic growth to aid in the outperformance of Samvardhana Motherson

Shares of auto component major, Samvardhana Motherson International, has gained 11.5 per cent on the bourses after the company approved the qualified institutions placement (QIP) issue and announced the calculation methodology for its compulsorily convertible debentures, or CCDs, into equity shares.

Analysts cite strong investor response to the issue that has kept the sentiment positive for the stock. 

Brokerages, however, have a mixed view on the outlook for the auto parts supplier.

Most brokerages are bullish on the medium-term prospects while indicating that the company is likely to have a bumpy ride in the short term. 

Prior