Buy Sansera Engineering; target of Rs 860: ICICI Direct

ICICI Direct's research report on Sansera Engineering

Sansera Engineering (SEL), established in 1981, is a Bengaluru based engineering led integrated manufacturer of critical precision forged components (engine, non-engine oriented) for end application in predominantly auto domain. FY22 geography mix: India 63%; Europe: 24%; US: 9%; Others: 4% • FY22 end-user mix: auto ~83%; non-auto ~11%; auto-tech & EVs ~6%.

Outlook

We maintain BUY rating amid robust order book, strong export order wins, precision engineering capabilities and tendency to outrun industry growth. We value SEL at Rs 860 i.e. 22x P/E on FY24E EPS of Rs 38.8, building in 15%, 25% sales, earnings CAGR, respectively, in FY22-24E.

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Sansera Engineering - 10 -11-2022 - icici