Sansera Engineering offers 17% upside potential, says Antique; holds 'Buy'

Domestic brokerage firm Antique Stock Broking has reiterated its Buy rating on Sansera Engineering, citing the company’s strong transition from an ICE-linked precision auto component supplier to a diversified, technology-led engineering platform. The firm highlighted Sansera’s growing exposure to aerospace, defence & semiconductor (ADS), xEV, and technology-agnostic automotive components. 

At the current market price of ₹2,150 per share, the brokerage sees an upside potential of 17 per cent and has set a target price of ₹2,520 per share. The valuation is based on 35x FY28 estimated earnings. 

The view follows a recent interaction with the company’s management. Antique noted that Sansera’s forging plants are largely electrified, with minimal reliance on PNG, which insulates operations to a large extent from the ongoing energy crisis. However, it cautioned that any prolonged geopolitical tensions could disrupt OEM supply chains and impact the broader industry in the near term. 

 

“Management’s aspiration of 20 per cent growth, 20 per cent Ebitda margin, and 20 per cent RoCE appears increasingly credible given current execution and visibility,” said the brokerage in its report. 

While acknowledging near-term geopolitical uncertainties, Antique believes these are largely transient in nature. The brokerage expects Sansera’s revenue, Ebitda, and PAT to grow at a CAGR of 14 per cent, 18 per cent, and 27 per cent, respectively, over FY25–FY28E. It also projects RoCE to improve to 17.5 per cent in FY28 from 13.8 per cent in FY25.  READ | Petronet LNG share price: Nomura cuts target as Qatar crisis hits volumes

ADS business a key growth driver

Antique highlighted the ADS segment as a structural long-term growth engine, offering superior visibility and higher margins in the range of 25–30 per cent. The company remains on track to achieve its FY26 target of over ₹300 crore, with expectations to scale up to around ₹600 crore annually by FY27 and approximately ₹1,300 crore by FY30. 

This growth is supported by a strong order book, including cumulative lifetime ADS orders of around ₹3,870 crore, along with ongoing capacity expansion. The company’s evolution from a Tier-2 supplier to a single-source supplier for select aerospace components—such as actuation gimbals and actuator housings—marks a significant milestone, said Antique. 

Sansera has also developed advanced capabilities to manufacture large load-bearing stabiliser components for aircraft, assemble intensive care transport modules (with about 60 per cent value addition in-house), and produce complex semiconductor chambers for fabrication equipment. Management indicated a strategic shift from stationary and structural aerospace components to rotary and engine components over the medium term. 

The second hangar, with a peak annual revenue potential of ₹600 crore, is expected to commence commercial production in the second half of FY27.  READ | Strong domestic demands defy global headwinds: ICICI Sec on hotel sector

In-house machine building capabilities

Antique further noted that Sansera possesses strong in-house machine-building capabilities, with a dedicated and experienced team manufacturing special-purpose machines. These capabilities enable the company to address shorter product lifecycles, rising costs, and competitive pressures effectively. 

The company currently operates over 1,200 CNC special-purpose machines across its facilities. Its in-house manufacturing includes automated gantry cells, internal grinding machines, vertical honing machines, and balancing machines, among others, the brokerage added.  ============================================ 

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