According to The Financial Express, SJS Enterprises is capitalizing on the rising content per vehicle trend through premium aesthetics and functional components. The company's kit value has increased significantly from ₹1,200-1,500 to ₹3,500-5,000 per passenger vehicle, with management targeting a further 5-8x expansion as integrated cockpit assemblies scale up. SJS supplies aesthetic and functional components including badges, chrome-plated parts, dials, overlays, decorative surfaces, and automotive displays, benefiting from features such as illuminated logos, premium displays, and backlit controls in modern vehicles.
As reported by The Financial Express, SJS Enterprises demonstrated strong financial performance with revenue growing from ₹210 crore in Q1FY26 to ₹261 crore in Q1FY27, representing a 24.5% year-on-year growth. The company maintained operating margins around 29% throughout this period while net profit surged to ₹74 crore from ₹35 crore year-on-year. The company achieved its 27th consecutive quarter of outperforming the underlying automotive industry in Q1FY27, with return on capital employed improving from 25% to 37%. Additionally, Shanthi Gears Ltd. shows strong financial metrics with healthy ROE of 23.08% and ROCE of 31.11% over the past three years, though it has experienced poor profit growth of 4.57% and revenue growth of 5.19% over the same period. Latest quarterly results show net sales of ₹134.89 crore in June 2025, with profit after tax of ₹22.69 crore and adjusted EPS of ₹2.96.
According to The Financial Express, Divgi TorqTransfer Systems is moving deeper into drivetrain technology, supplying torque-transfer systems, 4WD transfer cases, EV transmissions, and transmission components. The company secured transfer-case programmes for 70,000 vehicles (35,000 units each) from Mahindra & Mahindra and Tata Motors for export to Indonesia, along with a five-year AWD system programme covering around 6,000 vehicles annually from an Indian OEM.
As reported by The Financial Express, SJS Enterprises trades at 41.5 times trailing earnings, above its five-year median P/E of 28.6 times, while Divgi TorqTransfer trades at 61.4 times trailing earnings with a five-year median P/E of 57.7 times. Both companies are expanding internationally, with SJS targeting 14-15% export revenue by FY28 and Divgi aiming for 20-25% export contribution over the medium term. The opportunity lies in capturing more value per vehicle rather than volume growth alone, with SJS focusing on premium content and Divgi on advanced drivetrain technology.
