IN : Samvardhana Motherson International Ltd - Challenges in European operations persist

4QFY22 consolidated EPS grew 91% qoq to Rs0.3 but it is sharply below our and Bloomberg consolidated estimates, as SMRPBV slipped into a loss. High-cost inflation demands long-drawn customer negotiations to bring back profitability. We cut SMRPBV & PKC FY23F EBITDA by 12 & 5%, respectively. We introduce consolidated financial estimates for the reorganized entity and retain Reduce rating on it due to global car sales weakness and recession risk.