/images/ppid_59c68470-image-178884013951459022.webp)
/images/ppid_59c68470-image-178859002374538077.webp)
What is the story about?
Shares of Sansera Engineering Ltd. are in focus on Tuesday, September 8, after brokerage firm CLSA initiated coverage on the stock.
CLSA has initiated coverage on Sansera with an "outperform" rating and a target price of ₹4,954 apiece. This indicates an upside of 27.4% from its previous closing price on Monday.
CLSA said Sansera Engineering is a manufacturer of complex, high quality precision-forged and machined components.
The brokerage wrote in its note that Aerospace, Defence and Semiconductor (ADS) segment of the company will be Sansera's primary growth engine going forward.
Currently 16% of the company's revenue comes from the ADS business, while the rest comes from the auto business. The ADS business is also margin accretive, according to the CLSA note.
According to the brokerage, this would be supported by a strong order book and India's increasing emergence as a viable aerospace manufacturing hub for original equipment manufacturers (OEMs) and tier-1 suppliers.
In addition to the aerospace, defence and semiconductor (ADS) business being margin accretive, it also generates superior asset turns, which should improve Sansera Engineering's overall capital efficiency, the brokerage said.
Based on these factors, CLSA expects Sansera Engineering's Earnings Per Share (EPS) to double over the next three years, reiterating the view that Sansera Engineering is a compelling doubler (2x returns) story in three years.
Of the 16 analysts who have coverage on the Sansera Engineering stock, 11 have a "buy" rating and five have a "hold" rating. The consensus estimates of price targets indicates an upside potential of 8.2% from current levels.
Shares of Sansera Engineering are trading 3.2% higher in early trading on Tuesday at ₹4,020. The stock has already more than doubled in value this year, having gained 128% so far. Since its stock market debut in 2021, the stock has returned more than 5x to its shareholders from its issue price of ₹744.
Also Read: Wipro shares could fall another 10%, JPMorgan says with one of the lowest targets on the Street
CLSA has initiated coverage on Sansera with an "outperform" rating and a target price of ₹4,954 apiece. This indicates an upside of 27.4% from its previous closing price on Monday.
CLSA said Sansera Engineering is a manufacturer of complex, high quality precision-forged and machined components.
The brokerage wrote in its note that Aerospace, Defence and Semiconductor (ADS) segment of the company will be Sansera's primary growth engine going forward.
Currently 16% of the company's revenue comes from the ADS business, while the rest comes from the auto business. The ADS business is also margin accretive, according to the CLSA note.
According to the brokerage, this would be supported by a strong order book and India's increasing emergence as a viable aerospace manufacturing hub for original equipment manufacturers (OEMs) and tier-1 suppliers.
In addition to the aerospace, defence and semiconductor (ADS) business being margin accretive, it also generates superior asset turns, which should improve Sansera Engineering's overall capital efficiency, the brokerage said.
Based on these factors, CLSA expects Sansera Engineering's Earnings Per Share (EPS) to double over the next three years, reiterating the view that Sansera Engineering is a compelling doubler (2x returns) story in three years.
Of the 16 analysts who have coverage on the Sansera Engineering stock, 11 have a "buy" rating and five have a "hold" rating. The consensus estimates of price targets indicates an upside potential of 8.2% from current levels.
Shares of Sansera Engineering are trading 3.2% higher in early trading on Tuesday at ₹4,020. The stock has already more than doubled in value this year, having gained 128% so far. Since its stock market debut in 2021, the stock has returned more than 5x to its shareholders from its issue price of ₹744.
Also Read: Wipro shares could fall another 10%, JPMorgan says with one of the lowest targets on the Street
/images/ppid_59c68470-image-178880002466629334.webp)
/images/ppid_59c68470-image-178876011747775419.webp)
/images/ppid_59c68470-image-178876256204824004.webp)
/images/ppid_59c68470-image-17888401680774835.webp)
/images/ppid_59c68470-image-178879261431941521.webp)
/images/ppid_59c68470-image-178875252935622946.webp)
/images/ppid_59c68470-image-178875760571096941.webp)
/images/ppid_59c68470-image-178875764596994234.webp)