SJS Enterprises delivered exceptional Q1FY27 results with record quarterly revenue of ₹261 crore, representing a 24.5% year-on-year increase. The company's EBITDA margin expanded to 30% from 27.6% while EBITDA rose 36.2% to ₹80 crore. According to reports from The Financial Express, the company achieved its highest-ever quarterly revenue despite the broader automotive industry growing only 21.7% during the same period.
The company's strategic shift toward premium vehicle components has proven highly successful, with automotive business growing 32.4% compared to the industry's 21.7% growth. As reported by The Financial Express, SJS now supplies components worth ₹3,500-5,000 per vehicle compared to ₹1,200-1,500 a few years ago. The company's new-age products contribute 24% of consolidated revenue, with management targeting exports to reach 14-15% of total revenue by FY28 from the current 9.8%.
SJS has partnered with Hong Kong-based BOE Varitronix to manufacture automotive display solutions in India, with commercial production expected from Q2FY28. According to The Financial Express, management estimates the market for cover glass and display products could reach ₹5,000-7,000 crore by FY30. The company has created a wholly owned subsidiary for this business and is preparing manufacturing capacity ahead of expected volume growth.
SJS maintains a robust financial position with cash and cash equivalents of ₹338 crore against total debt of only ₹9.3 crore, resulting in a net cash position of ₹329 crore. As reported by The Financial Express, the company generated cash flow from operations of ₹81 crore and free cash flow of ₹84 crore during Q1FY27. The company's annualized Return on Capital Employed stood at 37.2% and Return on Equity was 20.3% in Q1FY27.
The stock trades at approximately 41 times trailing earnings, above its five-year median Price-to-Earnings multiple of about 29 times. According to The Financial Express, management expects to outperform the underlying automotive industry by 1.5-2 times in FY27 supported by premiumization, healthy order book, and expanding customer base. The company continues to target exports contributing 14-15% of consolidated revenue by FY28 while investing in Decoplast expansion and new premium products.
