IGI Logo

About the Company

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, the company manufactures and supplies a range of precision forged, machined components and assemblies that are critical for engine, transmission, suspension, braking, chassis and other systems for the two-wheeler, passenger vehicle (PV) and commercial vehicle (CV) verticals. In the non-automotive sector, they manufacture and supply a range of precision components for the aerospace, off-road, agriculture and other segments including engineering and capital goods.

Sansera is one of the top 10 global suppliers of connecting rods within the light vehicle segment (with a gross vehicle weight of 3.5 tonnes or less) and commercial vehicle segment. Within India, they are one of the leading manufacturers of

(i) connecting rods, crankshafts, rocker arms and gear shifter forks for two-wheelers and

(ii) connecting rods and rocker arms for passenger vehicles. As of July 31, 2021, it had 16 manufacturing facilities, of which 15 are in India and one facility is in Sweden.

Objects of the Issue

* To carry out the Offer for Sale of up to 17,244,328 Equity Shares by the Selling Shareholders;

* To achieve the benefits of listing the Equity Shares on the Stock Exchanges;

Outlook & Valuation

The auto component industry revenue is expected to grow at a CAGR of 11.9% over FY2021-26 to reach Rs. 5,284bn led by OEM demand, increase in production and higher outsourcing to auto component players by OEMs. Also, exports are expected to increase at a CAGR of 9.4% over FY2021-26, driven by PLI schemes, improvement in Indian safety and emission norms and domestic companies gaining technological capabilities through joint ventures. We believe these factors are likely to benefit auto component players in the coming time.

Sansera is gaining market share across automotive and non-automotive sectors as it is one of the leading suppliers of complex and high-quality precision engineered components. The company has a well-diversified business model with a strong customer base, geographical spread of revenues from India and foreign countries such as Europe and the USA and diversified revenue stream from segments such as two-wheelers, PV and CV. Further, its long-standing relationships with well-known Indian and global OEM customers augur well for growth. Going forward, the company has a plan to further diversify into non-automotive businesses, innovate new products and develop technology to cater to growing opportunities in the electrification of vehicles. On the financial front, the company’s performance has been steady and it would continue to focus on improving operating efficiencies. We have a positive view on the stock from the long term perspective.

Key Risks:

* i) Highly dependent on a few key customers.

* ii) Increase in raw material prices.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer http://ex.religareonline.com/disclaimer

SEBI Registration number is INZ000174330

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaime