This Auto component company, which does design-to-delivery in aesthetics solutions, and a provider with the ability to design, manufacture, and develop a product portfolio for a variety range of clients primarily in the consumer appliance and automotive industries.
Price Movement
S.J.S. Enterprises Limited’s stock in Tuesday’s session closed at Rs. 1113.30 per share down by 0.63 percent from the previous closing price of Rs. 1,120.35. The stock has delivered a return of around 79 percent in the past year and has outperformed the Nifty Index in the same period.
Business Segments
As per the recent September 2024 results, the company recognizes its revenue from manufacturing and selling self-adhesive labels like automotive dials, badges and logos, overlays, automotive products, and in-mold products for the automotive, appliances, and electronics industries.
As of Q2FY25, SJS contributes around 54.8 percent, their subsidiaries Exotech contribute around 24.3 percent and the remaining 20.9 percent from Walter Pack India.
From the 2-wheeler segment, the company earns around 35.7 percent, Passenger vehicles contribute around 40.9 percent, consumer durables contribute around 18.5 percent and others by 5 percent as of Q2FY25. The company caters majority of the business domestically with a share of 91.5 percent and exporting around 8.5 percent as of Q2FY25.
Future Outlook
The company expects to outperform the Industry by 1.5 times on account of Premiumisation, Building Mega OEM accounts, Exports, and Walter Pack India (WPI) Acquisition for the FY25 outlook. The current order book to be executed is over 85 percent of forecasted FY25 revenue and plans to maintain a higher margin of the business in FY25.
Organically for the period of FY24 to FY26, they plan to develop and introduce Optical cover glass, In Moulded Electronic (IME) parts, Illuminated logos, and other new gen technologies. Increasing capacity at the existing plant through debottlenecking and partnering with external chrome plating manufacturers. Exotech and WPI capacity expansion plans are finalized and for Q1FY26, the new plant is expected to be commissioned. SJS plans to open a new greenfield plant for Optical Cover Glass.
Inorganically, SJS plans to enter large markets like North America or Southeast Asia, expanding its presence in chrome plating and gaining direct entry into the OEMs to support cross-selling opportunities.
Through new-age aesthetic products and premiumization, they expect 4 to 6 times growth in Kite value in the Car segment from the current price per vehicle of Rs. 3,500 to Rs. 5,000 per vehicle, 1.5 to 2 times growth in Kit value for the Bike segment from current Rs. 300 to Rs. 500 per vehicle and 3 to 4 times growth in Kit value for Consumer appliances from the current Rs. 50 to Rs. 150 per product.
Financial Performance
Their Q2FY25 results show revenue from operations of Rs. 192.78 crore which increased by 18 percent year on year, from Rs. 163.17 crore in Q2FY24 and a 2.20 percent increase from Rs. 188.62 crore in Q1FY25. Their net profit increased by 51 percent year on year, from Rs. 19.31 crores in Q2FY24 to Rs. 29.14 crores in Q2FY25. Quarterly, the profits were up by 194 percent from Rs. 140 crore.
The debt-to-equity ratio was 0.31 times slightly declining from 0.49 times in FY23. The RoE in FY24 stood at 25.16 percent improved from 22.36 percent a year ago. However, the RoCE stood at 28.44 percent which has declined from 23.60 percent in FY23.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a share of 21.80 percent stake in S.J.S. Enterprises, Foreign Institutional Investors (FII) holding around 16.72 percent, Domestic Institutional investors (DII) standing at 30.08 percent, and public holdings standing at 31.39 percent.
About the company
SJS Enterprises Limited was established in 1987 and headquartered in Bengaluru. It is a prominent player in the decorative aesthetics industry, primarily serving the automotive and consumer appliance sectors.
They design and manufacture a variety range of products, including body graphics, decals, chrome-plated parts, and 3D appliques. SJS also offers aftermarket accessories for two-wheelers and passenger vehicles under the Transform brand. With a focus on innovation, SJS Enterprises provides design-to-delivery solutions, catering to various industries such as medical devices and farm equipment, while exporting its products internationally. The company holds approximately 90 percent market share in new-generation products like 3D Dials, and IML excluding chrome plating.
Some of the prominent clients include Mahindra, TVS, Hyundai, Royal Enfield, Honda, BMW, Yamaha, Triumph, Dixon, IFB, Bajaj, Liebherr, Stellantis, IFB, Fiat Chrysler Automobiles and others.
Written by Santhosh S
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