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Target: ₹1,064
CMP: ₹968.80
During Q1-FY24, Sansera Engineering reported better-than-expected performance. The Sweden subsidiary delivered healthy growth, with its revenue growing by 35 per cent and overall exports by 33 per cent YoY.
The management expects to achieve healthy export growth in FY24, driven by the order book, client addition, and capacity expansion. The company’s Revenue/EBIDTA/PAT grew by 24/24.5/31 per cent, respectively, on a YoY basis. Auto ICE revenue during the quarter grew by 20 per cent.
The margin for the quarter remained largely flat on a YoY basis at 17.4 per cent (+7bps YoY/+112 bps QoQ). The quarterly net income increased by 31% YoY to ₹44.70 crore.
SEL is transforming itself from an automotive to a non-automotive and xEV-agnostic products supplier by its ability to adapt to the changes. In the medium to long term, we anticipate that SEL will experience substantial revenue growth. We expect revenue/EBIDTA/PAT to grow at a CAGR of 17/22/29 per cent respectively over FY23-25 and value the stock based on 23x FY25E EPS
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