How SJS is redefining the auto-ancillary landscape with design-led, export-scalable, cash-rich growth — and why Elara believes it’s due for a structural re-rating.
In a space long dominated by volume-driven component manufacturers, SJS Enterprises has quietly evolved into a differentiated, design-led compounder. At a time when India’s auto and consumer durables sectors are undergoing tectonic shifts in premiumization, localization, and digitization, SJS has positioned itself at the intersection of all three trends.
That’s exactly why Elara Securities (India) has initiated coverage with a ‘Buy’ rating and a price target of INR 1,710, a 43% upside from its current price of INR 1,201 (as of 13 June 2025). The brokerage’s thesis isn’t based on cyclical tailwinds or one-off order wins — it’s built on five deep-seated structural pillars that make SJS a capital-efficient, margin-accretive, export-ready platform.
SJS Enterprises: Financial Snapshot
| Metric | FY25E | FY28E |
|---|---|---|
| Revenue | 760.50 | 1,234.10 |
| Adj. PAT | 118.8 | 205.9 |
| EBITDA Margin (%) | 25.7% | 26.2% |
| ROE (%) | 19.0% | 19.4% |
| ROCE (%) | 22.0% | 23.5% |
| Net Cash | ~20.9 | ~307.00 |
| Exports (% of revenue) | 7.5% | 13.0% |
| Free Cash Flow (FY25–28E) | 64.40 | 134.80 |
Between FY25 and FY28, SJS Enterprises is expected to grow its revenue at a CAGR of 17.5% and its adjusted PAT at a CAGR of 20.1%, driven by operating leverage, product premiumization, and rising export contributions.
Elara’s base case shows a capital-efficient, self-funding compounding story, even through an upcoming INR 160 crore capex cycle in FY26.
⚖️ Peer Comparison: Mispriced Despite Higher Quality
Despite better earnings visibility and return metrics, SJS trades at a discount to peers operating in similar or lower-growth spaces.
| Company | FY27 P/E (x) | ROE FY27E (%) | PEG (FY24–27E) |
|---|---|---|---|
| SJS Enterprises | 21.9 | 19.0 | 0.7 |
| Minda Corp | 29.7 | 16.7 | 1.1 |
| Uno Minda | 37.7 | 20.6 | 1.7 |
| Gabriel India | 20.4 | 21.6 | 1.0 |
| Suprajit Engineering* | 22.4 | 18.9 | 1.0 |
| Sansera Engineering* | 27.3 | 10.4 | 1.6 |
Elara: “SJS’s PEG ratio of 0.7x suggests deep mispricing versus peers with similar or lower growth, less integration, and weaker FCF.”
🔍 Why Elara is Bullish: Five Core Structural Catalysts
#1 TAM Set to Double — From INR 5,800 Cr to INR 11,900 crore by FY28
- Growth is not volume-driven, but value-led: higher content per vehicle via IME, overlays, illuminated logos, and optical cover glass.
- Appliance segment kit values up from INR 150 to INR 600/unit; PVs now fetch INR 3,500–5,000/unit, up from INR 1,200–1,500.
- FY28 revenue mix: 33% 2Ws, 37% PVs, 25% appliances — vs FY21’s 70% 2W share.
#2 Export Revenue to Grow at 32.8% CAGR (FY25–28E)
- Export share to rise from 7.5% to 13%, led by Stellantis, Whirlpool, Visteon.
- Export formats include IMD panels, IML surfaces, illuminated overlays — higher ASP, better margins.
- Domestic manufacturing + global commercial presence = cost leadership + global access.
#3 Margin and Cashflow Leadership
- EBITDA margin: 25–27%, vs 12–18% for most Indian ancillaries.
- FY26 INR 1.6bn capex is fully internally funded, focused on:
- Chrome trims (Exotech scale-up)
- Optical cover glass (Hosur plant)
- New decals/logos capacity
Post-FY26, Elara expects FCF to exceed INR 150 crore per annum, net cash to cross INR 300 crore by FY28.
#4 M&A as Capability Acquisition — Not Revenue Aggregation
| Acquisition | Year | Capability Added | FY25E Revenue Share |
|---|---|---|---|
| Exotech | 2022 | Chrome plating, painted plastics | ~25% |
| Walter Pack India | 2024 | IMD/IME, printed electronics | ~23% |
These deals transformed SJS into a platform, not a parts vendor, enabling bundled pitches, better ASPs, and long-cycle client lock-ins.
#5 Execution Strength: 90+ Projects Won in 10 Quarters
- Clients include Tata Motors, Mahindra, Stellantis, Whirlpool, Samsung, Atomberg.
- Integration across teams has created unified sales front-end across SJS, Exotech, and WPI.
- SJS now plays a key role in design-stage OEM planning — not just post-design supply.
Valuation Rationale: TP of INR 1,710 on 30x EPS
| Metric | Value |
|---|---|
| FY28E EPS | INR 65.7 |
| 12M Forward EPS (Jun-27E) | INR 56.9 |
| Target P/E Multiple | 30x |
| Target Price | INR 1,710 |
| Upside Potential | +43% |
Elara values SJS at a PEG of 0.7x and believes this leaves ample room for re-rating as earnings compound, exports rise, and new tech formats (IME, cover glass) scale.
SJS Enterprises Post-IPO Performance
SJS Enterprises launched its Initial Public Offering (IPO) on 1 November 2021, with a total issue size of INR 800 crore, entirely through an Offer for Sale (OFS). On its listing day, the stock debuted with a decline of 5.90%. Despite the subdued listing, the stock subsequently delivered strong performance, reaching an all-time high of INR 1,294.85 per share, marking an approximate return of 139% from its IPO price. Currently, the stock is trading at INR 1,201 per share, reflecting a correction of 7.24% from its 52-week high.
⚠️ Risks Elara Flags
- Customer concentration: Top 3 still contribute a large share. Export/customer diversification is in progress but not fully de-risked yet.
- Integration risks: Exotech and WPI execution appears smooth but full synergy realization is still underway.
- Export execution/certifications could face delays — base case assumes smooth ramp-up.
🧭 Final Word
SJS Enterprises is not just making parts — it’s monetizing design, interface, and emotion. Elara’s call isn’t based on speculative multiples or near-term catalysts; it’s a long-term bet on a vertically integrated, globally aligned, and cash-generating aesthetics platform.
As global mobility and consumer products get smarter and more stylish, SJS is building the hardware that makes the “smart” visible.
Investor Takeaway
| What Makes SJS Stand Out? | Why It Matters |
|---|---|
| Premium product mix (IME, chrome, overlays) | High ASPs and margin stability |
| Export-led growth engine | Diversifies revenue, improves realizations |
| Platform-style M&A (Exotech, WPI) | Tech depth + integration synergy |
| Zero-debt, high-ROCE capex cycle | Capital-efficient compounding |
| Strong execution + client diversification | Scalable + resilient business model |
For investors seeking a next-gen, high-quality India manufacturing story, SJS is a rare breed: one where aesthetics drive economics.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a SEBI-registered advisor or financial professional before making any investment decisions.