ICICI Securities Limited, IIFL Securities Ltd, Nomura Financial Advisory And Securities (India) Pvt Ltd
Sansera Engineering Limited (Sansera) is an engineering-led integrated manufacturer of complex and critical precision engineered components across automotive and non-automotive sectors. Within the automotive sector, they manufacture and supply a wide 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, which are critical for engine, transmission, suspension, braking, chassis and other systems for the 2-wheeler, passenger vehicle and commercial vehicle verticals. Within the non-automotive sector, they manufacture and supply a wide range of precision components for the aerospace, off-road, agriculture and other segments, including engineering and capital goods. Sansera supply most of their products directly to OEMs in finished (forged and machined) condition, resulting in significant value addition by them. For Fiscal 2021, they derived 88.45%, and 11.55% of their revenue from sale of products from the automotive sector and non-automotive sectors, respectively. They are a global supplier and for Fiscal 2021 they derived 64.98% of their revenue from sale of products from India and 35.02% of their revenue from sale of products from Europe, USA and other foreign countries combined. Within India, Sansera is one of the leading manufacturers of: i) Connecting rods, crankshafts, rocker arms and gear shifter forks for 2-wheelers and ii) Connecting rods and rocker arms for passenger vehicles. S Sekhar Vasan, F R Singhvi, Unni Rajagopal K and D Devaraj are the company promoters.
For year/ period ended ( in Cr.)
31 Mar 2021 | 31 Mar 2020 | 31 Mar 2019 | |
---|---|---|---|
Total Revenue | 1549.27 | 1457.17 | 1624.43 |
Profit After Tax | 109.86 | 79.91 | 98.06 |
EPS | 21.02 | 15.63 | 18.73 |
OPM(%) | 18.78% | 16.34% | 17.80% |
PATM(%) | 6.99% | 5.42% | 5.98% |
Considering its status and enjoyed preference with leading auto giants, they are poised for bright prospects ahead with good orders on hand. At the upper band of Rs. 744 the stock is valued at P/E multiple of 35.3 times which look overvalued. Hence, investor can subscribe to the issue for the medium to long-term.
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