Buy SJS Enterprises; target of Rs 1406: LKP Research

LKP Research's research report on SJS Enterprises

SJS Enterprises Ltd. (SJS) delivered a strong operating performance in Q4FY25, with consolidated revenue at ₹2,005 mn, up 7.3% YoY and 12.3% QoQ, led by robust traction in the PV segment. Domestic revenue grew 7.1% YoY, reflecting healthy demand conditions. EBITDA came in at ₹510 mn, with margins remaining steady at 25.4% YoY/QoQ. PBT rose to ₹406 mn, with margin expansion of 77 bps YoY to 20.2%, supported by lower finance costs. PAT stood at ₹337 mn (vs ₹272 mn in Q4FY24), translating into a modest 10 bps YoY improvement in PAT margin to 14.5%. Within the consolidated structure, SJS, WPI, and SJS Decoplast (formerly Exotech) contributed 50.3%, 22.5%, and 27.2% to revenues, respectively. Segment-wise, revenue was led by PVs (44.2%), followed by 2Ws (32.0%), consumer (17.9%), and others (5.9%). The business remained predominantly domestic, with India contributing 92.7% and exports the balance 7.3%.

Outlook

The company is well-placed to capitalize on premiumization-led demand and sector tailwinds. With industry-leading margins, strong return ratios (ROE in high teens, ROCE >25%), and attractive valuations, we assign a P/E of 24x on FY27E EPS of ₹59 and maintain a BUY rating with a TP of ₹1,406.

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