Ashish Kacholia-backed auto components stock gains 31% in 9 sessions – brokerage sees more 25% upside on strong outlook

Ace investor Ashish Kacholia-backed auto components and equipments company - SJS Enterprises shares have jumped nearly 31 per cent in the last nine sessions, after the firm delivered a strong and robust performance during March 2022 quarter (Q4FY22). 

The stock on Wednesday closed over 6 per cent higher to Rs 478.4 apiece on the BSE as compared to a 0.4 per cent fall in the S&P BSE Sensex. It touched an over six-month high of Rs 492 per share intraday, the highest level since November 26, 2021, and rallied over 9 per cent on the BSE. 

The scrip made debut on the bourses on November 15, 2021 and is trading 9 per cent below its issue price of Rs 542 per share. It had touched a 52-week high of Rs 551 per share on listing day and hit a 52-week low of Rs 340 on December 27, 2021. 

Ace investor Ashish Kacholia, who is fondly called as a Big Whale of the Indian stock market, holds 1148342 equity shares, which translates into a 3.77 per cent stake in SJS Enterprises, as per the March shareholding pattern of the company available on the BSE. 

Stating that SJS Enterprises Q4FY22 results were a mixed bag, IDBI Capital said, “The Company continues to outgrow the industry growth rate and reported 13.4 per cent sequential sales growth while domestic 2W and PV industry production volumes combined grew 2 per cent sequentially.” 

The brokerage retained profit estimates for FY23 and FY24 and expects SJS to report 24 and 36 per cent Sales & Profit CAGR (Compound Annual Growth Rate) over FY22-24. It retained a Buy rating on the stock with a price target of Rs 600 per share (upside of 25 per cent). 

SJS Enterprises is a leading aesthetics solution provider with an extensive suite of premium products for the auto industry. The company deals in 11 product categories like decals, logos, aluminium badges, 2D & 3D dials, chrome-plated parts, overlays in-moulding labeling, among others.