Kotak Institutional Equities in a fresh note on domestic auto component makers said the global automotive outlook for 2025–26 remained weak, with softness in the US and only a modest recovery in the EU posing downside risks for players with sizable overseas exposure.

The domestic brokerage said earnings for Samvardhana Motherson International Ltd (SAMIL), Bharat Forge and Sona BLW Precision Forgings Ltd (Sona Comstar) could remain under pressure, citing muted demand indicators across light vehicles, commercial vehicles and off-highway segments worldwide. Advertisement

Kotak finds valuations expensive, as it retained 'Sell' call on Bharat Forge and SAMIL and 'Reduce' rating on Sona BLW Precision. The brokerage noted that the recent stock run-ups on expectations around the India–US trade

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