SPR Auto Rallies 47% in 6 Months, Motilal Oswal Sees 37% Upside
Motilal Oswal Financial Services forecasts a ₹6,150 target price for the Delhi-headquartered auto components maker, which is shifting towards a diversified mobility platform.
Stock Performance and Outlook
SPR Auto Technologies Limited shares have climbed 47% over the past six months, with Motilal Oswal Financial Services projecting an additional 37% upside. The Delhi-based auto components manufacturer could see its stock reach a target price of ₹6,150 per share, according to the brokerage firm.
As of Friday, 25 September 2026, SPR Auto Technologies was trading at ₹4589.6 on the BSE, marking a 1.55% increase for the day and giving it a market capitalisation of ₹21,289.44 crore. The stock has delivered a 76% return over the past year.
Strategic Diversification Drives Growth
Motilal Oswal notes that SPR Auto Technologies is transitioning from a traditional piston producer to a broad, technology-focused mobility platform, embracing various powertrains. This shift involves strategic acquisitions, including Antolin, Takahata, TGPEL, and EMFi, aimed at business diversification.
The firm's subsidiaries show strong margin expansion, complementing a stable standalone business and an improved balance sheet. Analysts anticipate a 21% Compound Annual Growth Rate (CAGR) in profit after tax (PAT) for the company.
Market Tailwinds and Financial Strength
The company benefits from expanding opportunities in multi-fuel vehicle technologies, such as CNG, ethanol, hydrogen, and hybrids. Strong demand in the aftermarket segment also supports its growth, alongside the departure of global competitors from the internal combustion engine (ICE) ecosystem, Motilal Oswal stated.
Limited capital expenditure (capex) requirements are expected to further enhance the company's balance sheet. Motilal Oswal maintains a 'Buy' rating for SPR Auto Technologies, valuing the stock at 30 times its September 2028 estimated earnings per share (EPS).
Capital Infusion and Future Prospects
A recently completed ₹10 billion Qualified Institutional Placement (QIP) provides SPR Auto Technologies with capital to pursue future organic and inorganic expansion. This funding is a key factor supporting the projected upside, as it enables the company to continue its diversification strategy and capitalise on market trends.
Investors will monitor how this capital is deployed to assess its impact on the company's margin expansion and overall profitability.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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