The shares of the company rose 12 per cent to Rs 421.45 on the BSE in Friday after it announced that it plans to grow at a CAGR of around 25 per cent for FY 23 -- 25 and inorganic growth would boost the growth further up. The company, which is involved in the auto parts equipment business, said it had won several key projects from Continental, MG, Honda, Hyundai.
SJS said that the organic growth would be on the back of positive outlook of the automotive industry and the company's strategy of enhancing its chrome plating capacity, increasing presence in the export market and developing new age products and technologies, while strengthening relationships with existing customers and building mega accounts.
The company stated that it would like to explore more business accretive M&A opportunities that would help it grow over and above the organic growth of 25 per cent.
SJS delivered a strong and robust performance, outpacing the industry during March 2022 quarter Q4 FY 22. The company's consolidated revenue stood at Rs 104 crore, a growth of 13.4 per cent quarter on quarter QoQ compared to the 2 per cent growth QoQ of the combined Passenger Vehicle PV and Commercial Vehicle CV segments.
Earnings before interest, taxes, depreciation and amortization Ebitda downside was limited at Rs 26.69 crore, despite a rise in raw material cost. Ebitda stood at Rs 26.43 crore in Q 3 of FY 22. The Ebitda margin fell to 25.3 per cent from 28.5 per cent in the previous quarter.
The company said that the current order book to be executed in FY 23 is about 80 - 85 per cent of FY 23 forecasted revenue. The strong moat, strong margin profile and expected operating leverage will drive PAT growth of around 30 per cent YoY and going ahead.
SJS deals in 11 product categories, including decals, logos, aluminium badges, 2 D 3 D dials, chrome plated parts, overlays In-moulding labeling, optical plastics and lens mask assembly. These products serve two wheelers 2 W passenger vehicles PV and large consumer durables CD industries along with commercial vehicles, medical devices, farm equipment and sanitary ware segments.
It is currently trading 22 per cent less than its issue price of Rs 542 per share. The stock market debut was made by the company on November 15, 2021. It had hit a 52 week low of Rs 340 on December 27, 2021.