Here in this post we will analyze all about Sansera Engineering, their fundamentals, future view, company’s outlook, their financials, shareholding patterns etc , Based on company’s fundamentals and technical analysis, we will try to predict Sansera Engineering share price target 2023,2024,2025 and 2030.
About Sansera Engineering
Sansera Engineering Limited is an engineering-led integrated manufacturer of complex and critical precision engineered components across Automotive and Non[1]Automotive sectors. Is was established by Mr S Sekhar Vasan in the year 1981. They export their products more than 25 countries across the globe.
Sansera Engineering Share Price Target 2023: Technical Analysis
Sansera Engineering Share Price Target 2023
| Year | Sansera Engineering Share Price in 2023 |
| 2023 | ₹830 to ₹885 |
Company Overview
| Company Name | Sansera Engineering Ltd |
| Company official website | www.sansera.in |
| Market Cap (Cr.) | ₹ 3,995 |
| 52 W High / Low | ₹ 835 / 548 |
| Stock P/E | 28.3 |
| Book Value | ₹ 210 |
| P/B (Price to Book Value) | 3.59 |
| Face Value | ₹ 2.00 |
| ROCE | 14.4% |
| ROE | 13.4% |
| Dividend Yield | 0.26 % |
Sansera Engineering Business overview
Automotive sector:
Within the Automotive sector, Sansera manufactures and supplies a range of precision forged and machined components and assemblies, such as connecting rod, rocker arm, crankshaft, gear shifter fork, stem comp, and aluminium forged parts, that are critical for engine, transmission, suspension, braking, chassis and other systems for the Two-wheeler, Passenger Vehicle and Commercial Vehicle verticals.
Non-Automotive sector:
Within the Non-Automotive sector, Sansera manufactures and supplies a range of precision components for the aerospace, off-road, agriculture and other segments, including engineering and capital goods. Sansera supplies most of its products directly to OEMs in finished (forged and machined) condition, resulting in significant value addition.
Key Highlights:
- Largest Supplier of Connecting Rods, Rocker Arms and Gear Shifter Forks for the Two-wheeler Segment in India.
- Largest Supplier of Connecting Rods and Rocker Arms for the Light-vehicle Segment in India.
- Top 10 Supplier of Connecting Rods across the Globe.
- As of March 31, 2022, the Company has 17 manufacturing facilities, out of which 16, are in India located across the states of Karnataka (Bengaluru, Bidadi, Tumkur), Haryana (Manesar), Maharashtra (Chakan), Uttarakhand (Pantnagar), and Gujarat (Mehsana), while one facility is setup in Trollhättan, Sweden(Foreign Country).
- Auto Segment Total sell contribute: Motorcycle 37%, Scooters 10%, Passenger Vehicles 28% , ommercial Vehicles 13%
- Non Auto segment Total Sell contribution: Aerospace 3% , Off-road 3%, Agriculture 3% and Others 2%
- They are setting up a dedicated greenfield facility dedicated to Aerospace and Defence. This will will go on stream during 2022-23.
- They have about 255 components under various stages of development, including auto and non[1]auto excluding aerospace. We are also working at another 300 components at various stages of RFQ.
Revenue Contribution
- 63% from India and 37% from International (Europe 24%, USA 9% and 4% other countries)
- 89% Automotive industry and 11% non automotive Industry(aerospace, off-road, agricultural and others)
Robust Pipeline order:
245 LOIs/Purchase Orders from 66 customers in the Auto and 33 customers in the Non-Auto sector (including 9 EV Customers).
Healthy order pipeline has been built up with global orders constituting 61% of the pipeline.
Electric Vehicle segment (EV):
Indian markets are witnessing a robust demand of Electric Vehicles (EV). According to registrations on the Vahan portal, total EV sales increased 211% in 2021-22.
The Company is developing multiple technology-driven systems and components for catering the growing opportunities in electrification of vehicles. It has also set up a dedicated facility for hybrid and electric components within its existing plant located in Bengaluru. Production lines for e-2W and hybrid-PVs have begun mass production in the last quarter of 2021-22
Industry Overview
Automobile production figure
Automobile domestic sales figure
Automobile Electric Vehicles sales figure
Sansera Engineering Financial Performance for FY2022
- Sansera Engineering total revenues stand at Rs20,045 mn, a growth of 27%.
- They reported an EBIDTA of Rs 3,491 mn and PAT of ` 1,319 mn showing a growth of 18% and 20% respectively.
- The EBIDTA and PAT margins were 17.4% and 6.6% respectively.
Pros:
- Company’s debt are under control, debt is low compared to their reserves; their debt to equity ratio is 0.58.
- FIIS have strong holding within company with 38.50% stake.
- DIIS also have good holding 16.88% stake.
Cons:
- Stock is trading at 3.60 times its book value
- The company has delivered a poor sales growth of 10.9% over past five years.
- Company has a low return on equity of 12.1% over last 3 years.
- Dividend payout has been low at 2.71% of profits over last 3 years
Sansera Engineering Share Analysis Video
Sansera Engineering Share Price Target 2024-2025
Sansera Engineering Share Price Target 2024
| Year | Sansera Engineering Share Price in 2024 |
| 2024 | ₹970 to ₹1060 |
Sansera Engineering Share Price Target 2025
| Year | Sansera Engineering Share Price in 2025 |
| 2025 | ₹ 1180 to ₹1274 |
Sansera Engineering SUBSIDIARY/ASSOCIATE COMPANIES:
| Name of Subsidiary Company | Acquired on | % of shareholding |
| Fitwel Tools and Forgings Private Limited | Aug 01, 2014 | 70 |
| Sansera Engineering Private Limited. Mauritius | Nov 04,2016 | 100 |
| Sansera Sweden AB | April 14, 2017 | 100 |
Sansera Engineering Shareholding Patterns:
| Holdings | Year 2022(Sept)% |
| Promoters | 35.51 |
| FIIS | 38.50 |
| DIIS | 16.88 |
| Public | 9.12 |
Sansera Engineering Share Price Target 2030:
| Year | Sansera Engineering Share Price in 2030 |
| 2030 | ₹ 2800 to ₹3200 |
Sansera Engineering FAQ
Is Sansera Engineering share is a good buy?
As per increased price in raw material, previous quarter result was not at expectation, therefor we have seen some correction in the share, now around these level share looks good to buy.
Why has Sansera stock price fallen?
In the last quarter due to increased in raw material price, the result was not good therefore we have seen some correction in sansera stock price.
Is Sansera Engineering debt free?
No Sansera Engineering have debt, but there debt is under control and company debt-to-equity ratio is around 0.58 (as on march FY2022)
What does Sansera Engineering do?
Sansera Engineering Limited is an engineering-led integrated manufacturer of complex and critical precision engineered components across Automotive and Non[1]Automotive sectors.
Conclusion:
Overall Sansera Engineering’s fundamental looks good, foreign venture capitals have strong stake in company, FIIS and DIIS also have good stake in company, from last few years company have not created good return but in coming future we can expect a good growth.
Here is the end of the post “Sansera Engineering Share Price Target 2023, 2024, 2025-2030”, below in comment section write your views.
Source: Sansera Engineering Annual Report and Internet.
Nirmal is a NISM Certified Derivative Trader & the Founder of InvestandEarn.net (Financial Blog). He entered the world of Equity research to explore his interests in financial markets having 5+ Years of Experience in Share Market Trading & Investing. Nirmal frequently writes about Share Market Trading & Investment and publishes his personal view on the market. Drop him a mail at nirmal.jaysval@investandearn.net.
