Buy Sansera Engineering; target of Rs 1251: LKP Research

LKP Research is bullish on Sansera Engineering has recommended buy rating on the stock with a target price of Rs 1251 in its research report dated March 12, 2024.

Broker Research

April 12, 2024 / 11:45 IST

buy

26 Aug, 2025 12:21

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LKP Research's research report on Sansera Engineering

Sansera Engineering Ltd (Sansera) is an integrated player engaged in the manufacturing of various critical components such as connecting rods, rocker arms, crankshafts etc and precision engine forged components for 4Ws, 2Ws, and CVs. It also manufactures components for the aerospace, defence, and EV industries. The company has a strong order book of ~₹20.4 bn as of 3QFY24. Of which 53% is from tech-agnostic, xEV & nonauto segments, which we believe should drive strong topline growth going ahead and outperform industry growth. Our positive stance on the company is underpinned by Its strong engineering capabilities enabling it to expand the addressable market both in terms of product offering and geographic presence. Cashing in on large non-auto opportunities such as Aerospace and Defense for which the company has invested recently should yield positive results for the company, thus reducing dependence on Autos, especially the 2W ICE business in India.

Outlook

The stock is currently trading at a PE of 16x FY26E EPS assuming that the share of ICE enginerelated components (76% in 9M FY24) is expected to decline to ~65% in FY26. We initiate coverage on Sansera with a BUY rating and a target price of ₹1,235 at PE of 19x FY26E EPS.

For all recommendations report, click here