Brokerage firm CLSA has initiated coverage on Sansera Engineering Ltd. with an 'outperform' rating and a target price of ₹4,954 per share. According to reports from CNBC TV18, this target price indicates an upside of 31% from the stock's previous closing price. The brokerage also sees potential for Sansera's equity value to double over the next three years as its Aerospace, Defence and Semiconductor (ADS) business scales up. As per CNBC TV18, shares of Sansera Engineering are trading 3.2% higher in early trading on Tuesday at ₹4,020. The stock has already more than doubled in value this year, having gained 128% so far. Following the coverage initiation, Sansera Engineering shares jumped 3.85% to ₹4,046.40, reflecting strong market response to the positive analyst sentiment. On Tuesday, the stock jumped as high as 5% to ₹4,094.30 on the NSE, after opening 3.17% higher, before paring some gains to trade 3.62% higher at ₹4,035.
As reported by CNBC TV18, CLSA identified the Aerospace, Defence and Semiconductor (ADS) segment as Sansera's primary growth engine going forward. Currently, 16% of the company's revenue comes from the ADS business, while the remainder comes from the auto business. The ADS segment is described as margin accretive, with CLSA noting that it also generates superior asset turns, which should improve Sansera Engineering's overall capital efficiency. Since its stock market debut in 2021, the stock has returned more than 5x to its shareholders from its issue price of ₹744. CLSA emphasizes the importance of diversifying while maintaining growth in the auto segment, noting that achieving growth through one business shrinking is very different from one growing faster, which produces the described earnings trajectory. The brokerage expects the ADS business to scale up rapidly, with revenue projected to increase 4.5 times between FY25 and FY27.
According to Business Standard, Sansera Engineering's order book which represents peak annual revenues for new business excluding ADS stood at ₹1,849.3 crore as on 30 June 2026. The total unexecuted order backlog for the ADS business stood at ₹4,436.8 crore as on 30 June 2026. The brokerage expects the ADS business to scale up rapidly, with revenue projected to increase 4.5 times between FY25 and FY27. As reported by Business Standard, Sansera Engineering delivered a highest ever revenue during the Q1 FY27 quarter along with stable margins EBITDA and PAT levels. On a consolidated basis, the firm's revenue from operations rose 33% YoY to ₹1,021.3 crore in Q1 FY27, while EBITDA increased 48% to ₹196.1 crore and EBITDA margin improved to 19.2% from 17.2%. Profit after tax rose 39% to ₹87.4 crore, with PAT margin improving to 8.6% from 8.2%.
According to CNBC TV18, shares of Sansera Engineering are trading 3.2% higher in early trading on Tuesday at ₹4,020. The stock has already more than doubled in value this year, having gained 128% so far. Among the 16 analysts who have coverage on the stock, 11 have a 'buy' rating and five have a 'hold' rating. The consensus estimates of price targets indicate an upside potential of 8.2% from current levels. The aerospace opportunity is adding to growth while the company continues to diversify beyond auto internal combustion engines, maintaining growth in that segment despite long-term electrification questions facing the auto components business. CLSA expects Sansera's earnings per share (EPS) to more than double over the next three years, describing the company as a potential '2x in three years' story.
As reported by Business Standard, CLSA expects the ADS business to scale up rapidly, with revenue projected to increase 4.5 times between FY25 and FY27. The brokerage estimates revenue from the ADS segment could reach ₹1,500 crore annually by FY29, implying a 65% compound annual growth rate (CAGR) over FY26-FY29. The growth is supported by a strong order book and India's increasing emergence as a viable aerospace manufacturing hub for original equipment manufacturers (OEMs) and tier-1 suppliers. The ADS business is expected to be the primary driver of this growth trajectory, with aerospace and defence parts carrying higher margins, longer qualification cycles and much longer product lives compared to traditional auto components. According to CLSA's latest report, the brokerage expects revenue to compound at 21% annually during FY26-FY29, while earnings per share could grow at 30% over the next three years. The ADS business is projected to increase its revenue contribution to 24% by FY29 from 9.6% in FY26, with EBITDA margins expected to improve to 22.0% in FY29 from 18.1% in FY26.
