Sansera Engineering IPO : Subscribe or NOT?

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

Risks

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

Strength

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.

Future

The client profiles and relationship, move towards EV and contracts available presents good future prospects

Valuations

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

In case you have any questions/ queries, please feel free to reach me through Contact Form

Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.

Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.

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#Marathoner#Investor #Cyclist #Foodie#Traveler #Helping people in finances to fitness

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