Buy Sansera Engineering; target of Rs 1600: Anand Rathi

Anand Rathi's research report on Sansera Engineering

Broadly in line with our estimate, Sansera’s Q3 consolidated EBITDA grew 5% y/y to Rs1.27bn. We expect its outperformance to continue, thanks to greater focus on xEV (drivetrain), tech-agnostic (aluminium forgings) and non-auto (aerospace, Defence, semiconductor) components. We expect >30% revenue share from xEV, tech-agnostic and non-auto categories by FY27.

Outlook

We expect the EBITDA margin to rise ~50bps p.a., led by greater scale, Sweden subsidiary’s improved margins and a better export-tech-agnostic mix. We maintain a Buy at a lower TP of Rs1,600 (earlier Rs1,850), 25x FY27e EPS (25x FY27e).

For all recommendations report, click here