Target: ₹1,307

CMP: ₹1087.35

During Q4FY25, SJS Enterprises reported a 7.3 per cent /7.2 per cent /24.1 per cent y-o-y increase in Revenue/EBITDA/PAT to ₹200.5 crore /₹51.0 crore /₹33.7 crore, respectively. During Q4, the company witnessed 9 per cent y-o-y growth in the automotive business compared to 5.7 per cent y-o-y growth in the automotive industry (2W+PV) production volumes. During FY25, domestic sales grew 21.4 per cent to ₹703.7 crore, driven by 28.4 per cent growth in PV business and 18.8 per cent growth in consumer business.

For FY26, we believe the company to continue its strong financial performance trajectory. We expect the company to outperform the underlying automotive (2W+PV) industry growth by over 2x on the back of premiumisation, exports, WPI acquisition and creating mega OEM accounts. EBITDA margin is expected to be in the range of 25-26 per cent.

The company onboarded Hero MotoCorp to its list of marquee customers with a large-order win in April 2025.

The company plans to incur a capex of ₹220 crore over FY26-28E. For FY26, the company targets to spend ₹150 crore as follows: SJS standalone: ₹40-45 crore; SJS Decoplast (erstwhile known as Exotech Plastics): ₹70 crore and Cover glass: ₹40 crore.

We believe SJS is likely to deliver robust earnings growth led by: healthy sales traction for WPI aided by cross-selling opportunity and robust order inflow; expand wallet share by winning new businesses from its key customers; relatively faster pace of growth over the automotive industry led by premiumisation and increased value per kit; and new technology product categories such as IML, IMD, digital dials, optical plastics/cover glass.

Published on May 15, 2025