SJS Enterprises shares may rally 45%, Elara Capital says with highest price target
Published on 12/06/2025 01:21 PM
SJS Enterprises shares may rally 45%, Elara Capital says with highest price targetDespite better earnings visibility and margin leadership, SJS trades at a discount to premium peers, the brokerage said.By Meghna Sen June 12, 2025, 1:21:45 PM IST (Published)2 Min ReadShares of SJS Enterprises Ltd. rose 2% on Thursday, June 12, after brokerage firm Elara Capital initiated coverage on the company.
Elara Capital initiated coverage on SJS Enterprises with a 'Buy' recommendation and a price target of ₹1,710, which implies a potential upside of 45% from Wednesday's closing levels.
Elara Capital has the highest price target on the Street, followed by Monarch at ₹1,430. Arihant has the lowest target at ₹1,205.
The brokerage wrote in its note that SJS Enterprises is a leading manufacturer of aesthetic components for automotive (PVs and 2Ws), consumer appliances, and electronics domains, playing at the intersection of premiumisation, smart-surface adoption, and import substitution.
Its customer base spans nearly all major domestic OEMs, global tier-1 suppliers like Visteon, and top consumer brands like Whirlpool, Samsung, Panasonic.
The product portfolio features decals, overlays, chrome trims, illuminated logos, and IMD/IME panels, with optical cover glass to be added via future capex.
Given this positioning, the brokerage expects revenue and PAT CAGRs of 17.5% and 20.1%, respectively, in FY25-28E, with SJS positioned to grow 1.5-2x faster than industry volumes, led by rising kit value and richer content.
Elara expects export revenue CAGR of 32.8% in FY25-28E, with related share rising from 7.5% in FY25 to 13% in FY28E, led by export readiness of Walter Pack India, and traction at global OEMs.
Operating at 25-27% EBITDA margin, SJS will fund its FY26 capex of ₹160 crore via internal accrual and may generate ₹450 crore in free cash flow in FY25-28E.
Despite better earnings visibility and margin leadership, SJS trades at a discount to premium peers, the brokerage said.
Out of the eight analysts that have coverage on the stock, seven of them have continue to have a 'Buy' rating on the stock, while one has a 'Sell' rating.
SJS Enterprises shares are currently trading flat at ₹1,182. The stock is up over 4% so far in 2025.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagsshare market todaySJS Enterprises