Sansera Engineering Mid-Year Update: On Track to Meet Targets, Poised for Strong Growth
Sansera Engineering (SEL) has provided a mid-year update on its business execution and outlook, with the following key takeaways:
- Revenue is on track to meet the target of ~40% growth in exports in FY24, including ~50% growth in the aerospace segment.
- Supplies to Triumph and Harley for the newly launched indigenised models would add to 2W segment revenue growth, along with continued premiumisation of the overall 2W market.
- EBITDAM is on track to be at 17-18% in FY24 and inch up potentially higher in FY25, driven by the rising mix of exports/aerospace.
- Despite capex of INR 2.8-3bn p.a., SEL is confident of crossing ~20% pre-tax RoCE by FY25.
ICICI Securities retains a BUY rating on SEL with an unchanged target price of INR 1,133, implying 20x FY25E earnings.
SEL’s mid-year update is positive, with the company on track to meet its revenue and profitability targets for FY24. The growth in exports and aerospace is particularly encouraging, as it highlights the company’s strong global position and its ability to tap into high-growth markets.
SEL’s confidence in crossing ~20% pre-tax RoCE by FY25, despite capex of INR 2.8-3bn p.a., is also noteworthy. This suggests that the company is efficiently managing its capital and is well-positioned for long-term growth.
Overall, SEL’s mid-year update is reassuring and reinforces the company’s strong fundamentals. The company’s focus on exports, aerospace, and high-growth markets bodes well for its future growth prospects.
- 22 Sep
NBCC shares trade higher on Rs 100 crore work order from SAIL
NBCC shares were trading 3 percent higher on September 22 after the company announced having bagged a work order worth Rs 100 crore from SAIL. This is the fourth order-win announced by the company in this month, the total value of the same being Rs 450 crore. NBCC is a public sector undertaking engaged in the business of construction and real estate development. The company specializes in providing project management, consultancy and engineering services for civil construction, infrastructure development, and real estate projects.
- 22 Sep
Glenmark Pharma stock falls on stake sale in Glenmark Life Sciences
Glenmark Pharma stock fell after the company announced it would sell a 75% stake in its subsidiary Glenmark Life Sciences to Nirma. Analysts expect the stake sale to benefit Glenmark Pharma, as it will transition from a net debt position to a cash surplus position. This is expected to have a positive impact on the company's return ratios over the next two to three years.
- 22 Sep
Berger Paints Shares Hit 52-Week High After Turning Ex-Bonus
Berger Paints shares surged 6% to hit a 52-week high after turning ex-bonus on the record date for the issue of bonus shares in the ratio 1:5. The company posted a net profit of Rs 326.3 crore in the April-June quarter of FY24, up 39% year-on-year, on revenue of Rs 2,739.7 crore, up 10% year-on-year. The company expects to get net cash positive by the end of this fiscal year and expects to end the year with double-digit revenue growth on strong demand outlook.
- 22 Sep
Market Update for September 22, 2023
IdeaForge Tech up 3.4% on order RVNL up 3% on highway MoU JSW Steel up 0.4% on sale ICICI Lombard down 1.6% on CEO exit ICICI Bank down 1% on healthcare investment NHPC up 1.3% on extended additional charge Kalyani Forge up 3.2% on new MD IRB Infra up 2.5% on road project closure
- 22 Sep
Lux Industries Shares Down 3% After Income Tax Raid
Lux Industries shares fell 3% on September 22 after news emerged that the Income Tax department had conducted searches at the company's premises in Kolkata and alleged a tax evasion of Rs 200 crore. The company has confirmed the searches and is extending full support.