The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Sansera Engineering IPO-Incorporated in 1981, Sansera manufactures complex and critical precision engineered components and caters across automotive and non-automotive sectors
Business — The company manufactures precision components such as connecting rods, rocker arms, crankshaft assembly and gear shift forks for the automotive industry
Region of operation –Company caters to India 65% revenue and have 35% exports revenue. 12% revenue comes from non automotive segment.
Offer purpose —
The IPO is entirely an offer for sale by the promoters and other strategic investors
High concentration of revenues from few clients. Bajaj auto being highest , contributing close to 20% of automotive revenue
Export oriented risks
Faster shift to EV can cause some turbulence
Strong Operating profit Margin
Pass through arrangements with domestic customers for cost escalations help margins
Long term relationship with most customers
Reducing dependence on ICE vehicles
Experienced management team.
The client profiles and relationship, move towards EV and contracts available presents good future prospects
Valuations are matching with peers but look pricey
Should we apply?
People with high risk apetite can subscribe for long term only
Add more if it dips below issue price keeping long term horizon mindset
Others can avoid
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