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47% rally in six months: Shares of SPR Auto Technologies Limited surged during Friday’s trading session after ending lower in the previous session amid overall weaker market sentiment. Strong margin expansion in subsidiaries, improvement in the balance sheet and stable standalone business are likely to support the auto components manufacturer in the coming months, noted Motilal Oswal Financial Services, which sees 37% upside potential in the stock.SPR Auto Technologies' share price has surged nearly 48.84% over six months and around 76% over one year.SPR Auto Technologies outlookThe Delhi-headquartered company is evolving from being a traditional piston manufacturer into a diversified, technology-driven, powertrain-agnostic mobility platform through strategic inorganic acquisitions.The auto ancillary firm is likely to witness a 21% PAT CAGR, driven by stable standalone business and the rapid scale-up of subsidiaries. Strong margin expansion and limited growth in capex requirements are likely to improve its balance sheet.“SPR is benefiting from rising multi-fuel opportunities (CNG, ethanol, hydrogen and hybrids), strong aftermarket demand, and the premature exit of global competitors from the ICE ecosystem,” noted Motilal Oswal in its report. The firm is also focusing on business diversification through reinvestment in acquisitions such as Antolin, Takahata, TGPEL, and EMFi.SPR Auto Technologies share price recommendationMotilal Oswal maintained a ‘Buy’ rating on the stock with a target price of ₹6,150 per share, indicating a 37% upside in its valuation. “At CMP of INR4,494, the stock is trading at 23.7x FY28E and 20.4x FY29E EPS. We initiate coverage on SPR with a BUY rating and a TP of INR6,150, premised on 30x Sep’28E EPS.”Key rationale behind target priceThe recently completed ₹10 billion QIP will help the firm fund future organic and inorganic growth opportunities, and that could act as a key trigger for further upside, as per the Motilal Oswal report. The possibility of strong margin expansion, improvement in profitability, business diversification and a strong balance sheet are also among the key rationales behind the 37% upside target.SPR Auto Technologies share price trendThe stock was trading 1.55% higher at ₹4,589.6 apiece on BSE with a market capitalisation of ₹21,289.44 crore at 12:53 PM on Friday, September 25. The auto ancillary stock had touched an intraday high of ₹4,633 per share.Auto ancillary stock returnsIts share price has surged 14.42% over three months, 49.23% in six months, and 46.51% so far in 2026.Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
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