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Shares of Edelweiss Financial Services fell by 17% on BSE to the day’s low of Rs 64 after the Reserve Bank of India (RBI) directed the company to cease and desist from acquiring financial assets."The action is based on material concerns observed during the course of supervisory examinations, essentially arising out of the conduct of the group entities acting in concert, by entering into a series of structured transactions for evergreening stressed exposures of ECL, using the platform of EARCL and connected AIFs, thereby circumventing applicable regulations. Incorrect valuation of SRs was also observed in both ECL and EARC," the RBI said.The Reserve Bank of India has directed the company to cease and desist from undertaking any structured transactions in respect of its wholesale exposures (other than repayment or closure of accounts) in its normal course of business with immediate effect.Also read: Tata Steel shares fall 3% post Q4 results. Should you buy, sell or hold?“In the last Financial Year, the company passed a Board Resolution to discontinue this business, which was disclosed in its financial statements for the period ending 31 March 2024. The Company, therefore, believes these directions will not materially impact its strategy and its business. Reduction of the wholesale exposure will continue as permitted, in the normal course of business,” said Edelweiss in a filing to the exchanges.The order is directed for 2 Edelweiss companies, i.e., Edelweiss Asset Reconstruction Company and ECL Finance.Edelweiss stated that it will take the necessary actions immediately after reviewing the order and will address the observations mentioned.“We are reviewing the order and will address the observations mentioned in the RBI order. We are dedicated to maintaining transparency and upholding the highest standards of corporate governance and committed to compliance with regulatory requirements,” said Edelweiss in the company filing.After the update, Edelweiss Financial shares dropped below all its significant exponential moving averages, however, retained a neutral level of about 47 on the RSI as per the Trendlyne data.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Brokerages increased target prices up to Rs 180 for the auto components maker Samvardhana Motherson International as the company posted a two-fold jump in its net profit to Rs 1,444 crore for Q4FY24.The company's total revenue from operations also rose to Rs 27,058 crore for the period under review as compared to Rs 22,517 crore in the last quarter of FY23.The shares of Samvardhana Motherson International were trading nearly 1% higher today on BSE at Rs 148 around 10 am.Here is what analysts have to say about the company's performance:JM Financial"Over the medium-to-long term, we expect premiumisation and electrification to drive content per vehicle for SAMIL’s powertrain-agnostic product portfolio. Recent acquisitions have started reflecting favorably on overall performance and the company indicated a strong pipeline going forward," stated a JM Financial report.JM Financial has maintained a 'buy' rating on the stock with a target price of Rs 180.Motilal OswalGiven its well-diversified presence across components, geographies, and customers, Samvardhana Motherson International is emerging as the key beneficiary of the growing popularity of EVs and the rising trend of premiumization across segments. This is evident in a significant ramp-up in its order book, with its booked business scaling up to USD83.9b.Motilal Oswal has retained a 'buy' view on the stock with a target price of Rs 170.Nuvama"We are constructive on SAMIL’s prospects on the back of its strong management capabilities, pending order book and increasing content per vehicle due to premiumisation/ electrification. We are building in a revenue/EBITDA CAGR of 12%/22% over FY24–26E," said Nuvama in its report.Nuvama reiterated a 'buy' rating with a target price of Rs 170 on the stock.Also read: Apollo Hospitals Q4 results today: What to expectNomuraGlobal brokerage firm Nomura stated that strong earnings growth is likely to continue for the company, driven by the integration of acquisitions and cost optimization. Operating leverage and cost pass-through should support margins. In Nomura's opinion, there could be an upside to growth in the non-auto businesses, which account for 70% of the greenfield capex (Rs 1,400 crore), but are not accounted for fully in earnings now.Nomura has a 'buy' view on the stock with a target price of Rs 165.Kotak Institutional EquitiesKIE believes that the company continues to execute well, despite geopolitical tensions and wage pressures and is well-poised to benefit over the mediumterm from an increase in content per vehicle in PV, driven by M&As and premiumization, strong relationship with OEMs, and consolidation of suppliers.Kotak Equities has an 'add' rating on the stock with a target price of Rs 160.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)