Sansera Engineering - Capitalising On Diversification, Exports; IDBI Capital Initiates Coverage With A Buy

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Sansera Engineering Ltd. (Source: Company website)

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IDBI Capital Report

We initiate coverage on Sansera Engineering Ltd. with a Buy rating and a target price of Rs 1,625/share. Sansera, an engineering-led manufacturer of precision components, is set for impressive growth.

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We project a 37% compound annual growth rate in non-non-internal combustion engine sales from FY24 to FY27E, far outpacing AutoICE sales growth.

Expansion into high-margin export markets (low to mid-20s margin) will further boost profitability and EPS. With a robust order book of Rs 15.9 billion dominated by non-ICE and export, Sansera has strong revenue visibility.

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We expect revenue and profit after tax CAGR of 17% and 35% respectively over FY24-27E, positioning Sansera to outperform industry growth.

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