Target: ₹1,573
CMP: ₹1,402.65
During Q1-FY26, SJS Enterprises reported 11.2/13.8/22.6 per cent y-o-y increase in Revenue/EBITDA/PAT to ₹209.7 crore/₹55.9 crore/₹34.6 crore, respectively. During Q1-FY26, the company witnessed 22.8 per cent y-o-y growth in the automotive business compared to 1.2 per cent y-o-y growth in the automotive industry (2W+PV) production volumes.
This performance was primarily driven by 32.7 per cent y-o-y growth in the two-wheeler (2W) segment and 13.8 per cent y-o-y growth in the passenger vehicle (PV) segment.
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. The EBITDA margin is expected to be in the range of 25-26 per cent.
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 like IML, IMD, digital dials, optical plastics/cover glass.