SJS Enterprises surges 12% in weak market on strong Q1 performance

The company is positioned to achieve revenue growth exceeding 1.5X that of the underlying industry growth, while maintaining robust EBITDA margins, driven by promising prospects in the 2W and PV.

SJS Enterprises in focus: Shares of SJS Enterprises hit a record high of Rs 958.25, surging 12 per cent on the BSE in Friday’s intra-day trade in an otherwise weak market.

The uptick in share priuce came after the company reported a strong earnings with profit after tax (PAT) jumping 56.6 per cent year-on-year (YoY) at Rs 28.24 crore in June quarter (Q1FY25), on back of healthy operational performance. The decorative aesthetics company had posted profit of Rs 18.03 crore in Q1FY24.

At 09:45 AM, SJS was trading 10 per cent higher at Rs 941.65, as compared to 0.95 per cent decline in the BSE Sensex. Since April, thus far in the financial year 2024-25, the stock zoomed 57 per cent.

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) grew 60.8 per cent Y-o-Y to Rs 50.5 crore. Its margins improved to 26.6 per cent from 26.1 per cent on account of significant improvement in SJS standalone margins.

The company reported revenue growth of 60.9 per cent Y-o-Y to Rs 188.6 crore, compared to 17 per cent Y-o-Y growth in automotive market (2W+PV), primarily on back of WPI acquisition and strong business growth in passenger vehicle (PV), consumer segments as well as in exports, the company said.

Both Exotech and WPI acquisitions complement the SJS’s portfolio well, allowing for cross-selling opportunities and bolstering its order book outlook. The company believes that Walter Pack India strategically strengthens SJS, positioning the company for long-term growth and profitability.

SJS in its FY24 annual report said that the company is positioned to achieve revenue growth exceeding 1.5 times that of the underlying industry growth, while maintaining robust Ebitda margins, driven by promising prospects in the two-wheeler, passenger vehicle, and consumer segments.

The company’s growth will be bolstered by factors such as premiumisation initiatives, successful acquisition of new customers as well as penetrating deeper with our key original equipment manufacturer (OEM) customers, robust exports, and the strategic inclusion of WPI.

Meanwhile, Dixon Technologies added as a new customer, this opens significant opportunities in the consumer durables segment. The company said it continued winning new business with mega customer accounts like Stellantis, Mahindra & Mahindra (M&M), Tata, TVS, Honda, Yamaha, Continental, Bajaj Auto, Royal Enfield, Foxconn, Syrma among others.

SJS is among the leading players in the Indian decorative aesthetics industry. The company offers an extensive array of products across traditional and premium segments. It supplies decorative aesthetic products to a diverse clientele, including automobile, consumer appliances, medical devices, farm equipment, and sanitary ware manufacturers, both in India and overseas.