Target: ₹1,710

CMP: ₹1,164

SJS Enterprises (SJS IN) is a leading manufacturer of aesthetic components for automotive (PVs and 2Ws), consumer appliances, and electronics domains, playing at the intersection of premiumisation, smart-surface adoption, and import substitution. Its customer base spans nearly all major domestic OEMs, global tier-1 suppliers (Visteon), and top consumer brands (Whirlpool, Samsung, Panasonic).

The product portfolio features decals, overlays, chrome trims, illuminated logos, and IMD/IME panels, with optical cover glass to be added via future capex.

Given this positioning, expect revenue and PAT CAGRs of 17.5 per cent and 20.1 per cent in FY25-28E, with SJS positioned to grow 1.5-2x faster than industry volumes, led by rising kit value and richer content. Expect export revenue CAGR of 32.8 per cent in FY25-28E (domestic CAGR of 16.1 per cent), with related share rising from 7.5 per cent in FY25 to about 13 per cent in FY28, led by export readiness of Walter Pack India and traction at global OEMs.

Operating at a 25-27 per cent EBITDA margin, SJS will fund its FY26 capex of ₹160 crore via internal accruals and may generate ₹450 crore in FCF in FY25-28E. Initiate with Buy and a TP of ₹1,710 on 30x rolling one-year forward EPS.

Risks are concentrated customer base, and missteps in scaling export and integrating acquisitions.

Published on June 12, 2025