Synopsis: Goldman Sachs has recommended Craftsman Automation and Sansera Engineering, expecting upside potential of up to 28 percent, supported by a strong earnings outlook and long-term growth prospects.
Goldman Sachs has identified select Indian stocks that it believes offer strong upside potential, backed by improving earnings, sector tailwinds, and long-term growth prospects. The brokerage remains positive on companies with strong business fundamentals and healthy execution.
Based on its latest recommendations, some stocks offer an upside potential of up to 28 percent from their current market prices. Here are two stocks that have received a ‘Buy’ rating from Goldman Sachs and are expected to benefit from their growth outlook and expansion plans. Here are a two stocks recommended by Goldman Sachs with a high growth potential of up to 28 percent:
Craftsman Automation Limited
With a market capitalization of Rs. 24,336.83 crore, the shares of Craftsman Automation Limited were currently trading at Rs. 9,305.05 per equity share, rising nearly 2.26 percent from its previous day’s close price of Rs. 9,099.35.
Goldman Sachs, a prominent brokerage firm, has recommended a “Buy” call on Craftsman Automation Limited with a target price of Rs. 11,600 per share, indicating an upside potential of 27.48 percent from its previous day’s close price of Rs. 9,099.35.
Goldman Sachs has initiated coverage on Craftsman Automation with a “Buy” rating, highlighting its strong growth prospects. The brokerage expects the company to benefit from rising demand for engine blocks, supported by the global expansion of data centres and increasing demand for precision engineering components. It also sees significant opportunities from the growing use of aluminium in electric vehicles (EVs), which is expected to boost demand for the company’s products.
Additionally, the “local for global” strategy in engine parts manufacturing could drive export growth. Goldman Sachs believes the ongoing turnaround in Sunbeam will further improve profitability and return on equity (ROE), supporting the company’s long-term earnings growth.
Craftsman Automation Limited is an Indian engineering and manufacturing company specializing in precision components, automotive systems, aluminium castings, and industrial engineering products. Headquartered in Coimbatore, Tamil Nadu, it serves domestic and international original equipment manufacturers (OEMs) through vertically integrated manufacturing operations and has expanded into multiple engineering segments over the past several decades.
Sansera Engineering Limited
With a market capitalization of Rs. 21,026.26 crore, the shares of Sansera Engineering Limited were currently trading at Rs. 3,369.40 per equity share, rising nearly 4.66 percent from its previous day’s close price of Rs. 3,219.45.
Goldman Sachs, a prominent brokerage firm, has recommended a “Buy” call on Sansera Engineering Limited with a target price of Rs. 4,130 per share, indicating an upside potential of 28.28 percent from its previous day’s close price of Rs. 3,219.45.
Goldman Sachs has initiated coverage on Sansera Engineering with a “Buy” rating, citing the company’s strong long-term growth potential. The brokerage believes Sansera is well-positioned to benefit from rising demand in the semiconductor, aerospace, and defence sectors, where precision engineering components are increasingly required. It also expects the company’s growing presence in Southeast Asia’s wafer fabrication equipment supply chain to support revenue growth and improve profit margins.
In addition, potential benefits from the government’s Production-Linked Incentive (PLI) scheme have not yet been factored into its estimates, offering further upside. Goldman Sachs also expects exports, aerospace and defence businesses, along with increased domestic two-wheeler parts outsourcing, to drive earnings growth and strengthen profitability over the coming years.
Sansera Engineering Limited is an Indian precision engineering company that manufactures complex, high-precision forged and machined components for the automotive and non-automotive industries. Founded in 1981 and headquartered in Bengaluru, it has grown into one of India’s leading suppliers of critical engineering components, serving both domestic and international original equipment manufacturers (OEMs).
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