During Friday’s trading session, the shares of one of the leading players in the Indian decorative aesthetics industry are in focus, after the global brokerage firm, Elara Capital, initiated a “buy” rating on the stock, with a potential upside of about 47 percent.
With a market capitalisation of Rs. 3,630 crores, the shares of S.J.S. Enterprises Limited opened in the green at Rs. 1,175.6, up by nearly 1 percent, as compared to its previous closing price of Rs. 1,167.15. The stock has delivered positive returns of nearly 44 percent in the last one year, and has gained by over 7 percent in a month.
Brokerage Target & Outlook
Global brokerage firm Elara Capital has initiated a “buy” rating on S.J.S. Enterprises Limited and assigned a target price of Rs. 1,710 per share, representing a potential upside of nearly 47 percent from current price levels of Rs. 1,159.35.
Elara continues to maintain a bullish stance on the stock, citing strategic acquisitions and strong market positioning as key growth catalysts. Notably, this is the highest target price assigned to SJS among brokerages.
Valuing the company at a premium multiple of 30x its one-year forward EPS, Elara emphasises the company’s distinct aesthetic design capabilities, industry-leading return ratios, and capital-efficient expansion into high-value, export-ready verticals.
By FY28, Return on Equity (ROE) and Return on Capital Employed (ROCE) are estimated to reach 19.4 percent and 23.5 percent, respectively. Despite these strong fundamentals and earnings visibility, the stock continues to trade at a discount to premium peers, offering an attractive re-rating opportunity as it benefits from integration synergies and growing export scale.
The brokerage projects revenue and net profit CAGRs of 17.5 percent and 20.1 percent, respectively, over FY25-FY28E. SJS is expected to outpace industry volume growth by 1.5-2x, driven by increasing kit value and enhanced product content.
Exports are seen as a major growth lever, with Elara forecasting a 32.8 percent CAGR in export revenues during FY25-FY28E. The export share is projected to rise from 7.5 percent in FY25 to 13 percent by FY28, led by the export-ready capabilities of Walter Pack India and increasing engagement with global OEMs.
SJS maintains a strong EBITDA margin of 25-27 percent, and its planned Rs. 160 crore capex for FY26 will be funded entirely through internal accruals. Free cash flow generation is expected to touch Rs. 450 crore over FY25-FY28E.
Financials & More
S J S Enterprises reported a marginal growth in revenue from operations, experiencing a year-on-year rise of nearly 7.5 percent, from Rs. 187 crores in Q4 FY24 to Rs. 201 crores in Q4 FY25. Similarly, the company’s net profit increased during the same period from Rs. 27 crores to Rs. 34 crores, representing a significant rise of nearly 26 percent YoY.
The company’s revenue from operations grew at a CAGR of around 27 percent between FY22 and FY25, while the net profit jumped by over 29 percent CAGR over the same period.
Written by Shivani Singh
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