IGI Logo

S.J.S. Enterprises Ltd

About the Company

S.J.S. Enterprises Ltd is one of the leading players in the Indian decorative aesthetics industry in terms of revenue in FY21. It is a “design-to-delivery” aesthetics solutions provider with the ability to design, develop and manufacture a diverse product portfolio for a wide range of customers primarily in the automotive and consumer appliance industries. Besides, they manufacture a wide range of aesthetic products that cater to the requirements of the commercial vehicles, medical devices, farm equipment and sanitary ware industries. They supplied over 115mn parts with more than 6,000 SKUs in FY21 to around 170 customers in 90 cities and across 20 countries. They manufacture products from modern manufacturing facilities located in Bengaluru and Pune in India. As of June 30, 2021, the annual production capacity of the Bengaluru and Pune facilities was 209.7mn and 29.5mn products respectively.

Their product offerings include decals and body graphics, 2D appliques and dials, 3D appliques and dials, 3D lux badges, domes, overlays, aluminum badges, “In-mould” label or decoration parts, lens mask assembly and chrome-plated, printed and painted injection moulded plastic parts. They also offer a variety of accessories for the two-wheelers’ and passenger vehicles’ aftermarket under the “Transform” brand.

Objects of the Issue

* To carry out the offer for sale of equity shares by the selling shareholders;

* To achieve the benefits of listing the equity shares on the Stock Exchanges;

Valuation

The aesthetics products industry in India generated revenue of Rs 19.9bn in FY21 led by demand for products such as decals, stickers and aluminum badges, followed by chrome-plated parts IMD/IML and appliques. Further, over the FY21-26, the demand in India is expected to grow at a CAGR of ~20% and reach ~Rs 49.2bn driven by increasing use of premium products, rise in adoption of electric vehicles, aesthetically superior products and technologically advanced products.

SJS will benefit from the opportunities in the sector given that it has significant experience in the industry as well as a good track record of supplying premium products. They have diversified product portfolios that differentiate themselves from other players as well as long-standing relationships with customers which bodes well in earning strong revenue. Going forward, the company aims to drive growth by focusing on new technology and advanced aesthetic products, increase the geographical footprint, innovating quality products and expanding customer base. Apart, they intend to pursue opportunities in other industries such as outdoor equipment and FMCG. On a financials front, the company has posted revenue/PAT CAGR of 3%/13% FY19-21. It has a strong balance sheet, healthy return ratio and low debt. From the long term perspective, we have a positive view on the company.

Key Risks:

* i) High dependence on customers in the automotive and the consumer appliance industry

* ii) Volatility in raw material price can impact margins.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.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