Shares of SPR Auto Technologies surged 3.8% to ₹4,659 on the NSE after Motilal Oswal announced a new price target of ₹8,085, marking an 80% upside from the current level.
Motilal’s note, issued on Thursday, gave the firm a clean "buy" rating and flagged the company’s piston business as a cash‑cow, boasting nearly 500 basis points higher margins than its nearest peer and a 50% Return on Capital Employed.
The brokerage highlighted a strategic pivot: SPR is no longer just a piston maker; it’s morphing into a powertrain‑agnostic mobility platform through acquisitions of Antolin, Takahata, TGPEL and EMFi. These moves are expected to lift the company’s estimated content per vehicle to over ₹30,000, with a 6‑fold expansion in precision plastic moulding and other high‑margin components.
In its bull case, Motilal projects a 24.4% revenue CAGR through FY2029, up from the 20.7% base case, and an EBITDA margin of 19.2% by FY2029 – 30 basis points better than the base scenario. Core RoCE is slated to climb to 28% in FY2029 from 20% in FY2026, driven by margin expansion in the subsidiaries and limited capex needs.
Looking forward, the firm expects a 21% compound PAT growth over the next few years, powered by a steady standalone business and rapid scale‑up of its acquisitions. A recent ₹1,000 crore fund raise is seen as a catalyst for further upside, though the note warns of rising commodity prices, tech shifts and competitor exits from the ICE ecosystem as key risks.