Sansera Engineering Limited

Consumer Cyclical — Auto Parts · NSE

₹4,129.40+₹74.90 (+1.85%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by negative free cash flow, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Sansera Engineering Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sansera Engineering Limited engages in the manufacture and sale of precision engineered components in India, Europe, the United States, and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees2,875

Annual revenue₹3,296 Cr

How does it make money?

Turns over ₹3,296 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 2,875 employees supports ₹1.15 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.15 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE23.0%

What is the outlook?

11 analysts covering the stock expect revenue to grow about 19.0% and earnings to grow about 27.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+19.0%

Est. earnings growth+27.1%

Analysts11

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +51% while net margin moved +46% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+51%

Margin effect+46%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 80.9x is demanding — it needs sustained high growth to justify
✗ P/E is 87% above its own historical median of 43.3x — expensive by its own standards
✗ P/B of 8.32x is a steep premium to book

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

23/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

80.9x

3Y Median

43.3x

40 monthly readings · mean 48.8x · range 30.9x–90.0x

Sector Median

45.7x

median of 4 sector peers

⚠️Current valuation is approximately 87% above its 3y median of 43.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 77% above the peer median of 45.7x.

vs. its own history

Expensive

43.3x median over 40 months · +87%

vs. sector peers

Expensive

45.7x median of 4 peers · +77%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

37.9x

PEG

2.66

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 18.1% to 21.0% over 3 years.
Debt is being paid down
Total debt is down 26% over 3 years.
Very low debt
Debt/Equity of 0.19x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 16.0% to 13.6% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹126 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 81% against revenue up 51% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 18.1% to 21.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 26% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 87% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 14.8% CAGR
Latest reported year was 33.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 19%✓ 21.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹126 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 13.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹25,775 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

80.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

8.32x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹51.07

Profitable

Profitable on a per-share basis

ROE

10.5%

Moderate

Moderate capital efficiency

ROCE

13.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

33.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

38.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.10%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹126 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

45.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

13.1%

Average

Average margins

Net Margin

9.3%

Average

Average bottom-line conversion

Current Ratio

1.75

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.77

Defensive

Steadier than the market

52W Range Position

81%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4328.2 / 4072.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

30.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,178 Cr	₹2,640 Cr	₹2,826 Cr	₹3,296 Cr	+14.8%
EBITDA	₹393 Cr	₹481 Cr	₹536 Cr	₹692 Cr	+20.7%
EBITDA Margin	18.1%	18.2%	19.0%	21.0%	—
PAT (Net Profit)	₹146 Cr	₹186 Cr	₹215 Cr	₹324 Cr	+30.4%
EPS	₹27.17	₹34.4	₹37.18	₹51.91	+24.1%
ROE	12.5%	13.8%	7.8%	10.5%	—
ROCE	16.0%	18.3%	11.4%	13.6%	—
Total Debt	₹804 Cr	₹891 Cr	₹407 Cr	₹591 Cr	-9.8%
Free Cash Flow	₹13 Cr	₹36 Cr	-₹219 Cr	-₹126 Cr	—

🟢 Revenue has grown at 14.8% a year over 3 years.

🟢 EBITDA has grown at 20.7% a year over 3 years.

🟢 EBITDA Margin has risen from 18.1% to 21.0% over 3 years (+2.9 pts).

🟢 PAT (Net Profit) has grown at 30.4% a year over 3 years.

🟢 EPS has grown at 24.1% a year over 3 years.

🔴 ROE has fallen from 12.5% to 10.5% over 3 years (-2.0 pts).

🔴 ROCE has fallen from 16.0% to 13.6% over 3 years (-2.4 pts).

🟢 Total Debt has shrunk at 9.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹13 Cr to -₹126 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,495 Cr

Total Liabilities

₹1,387 Cr

Cash & Equivalents

₹104 Cr

Operating Cash Flow

₹387 Cr

Capex

-₹513 Cr

Shareholding (proxy)

Institutional Holding

50.6%

Insider Holding

29.2%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

17 Sept 2026

Analyst Consensus

Recommendations

9 Buy · 2 Hold · 2 Sell

Target Price (Mean)

₹4,106.31

-0.6% vs CMP

Target Range

₹2,500 – ₹5,260

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive2 mixed3 general

Sansera Engineering (NSEI:SANSERA) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Sansera Engineering Share Price: price action and valuation

Univest, 12 Oct

Price Action: Meesho, Sansera Engineering gain 5-6% as brokerages retain 'buy' rating

Moneycontrol.com, 22 Sept

Sansera Engineering sets Sep 24 AGM with ₹4 dividend and board changes

scanx.trade, 24 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Sansera Engineering Shares Surge 6% After Goldman Sachs Initiates 'Buy' Call — Check Target Price

NDTV Profit, 20 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Stock Radar: Sansera Engineering stock hits fresh record highs in September; time to buy or book profits?

The Economic Times, 22 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth

MiddlingProfitability · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑