Axis Securities recommends buying this stock for 20% returns, know target

Brokerage Axis Securities recommends buying shares of Sansera Engineering after the company reported strong financial results for the fourth quarter of the financial year 2024.

According to the brokerage, the company has recorded a strong EBITDA margin in Q4FY24. Capex and diversified business will strengthen growth. The stock has risen by about 40 per cent in one year.

Axis Securities' view on Sansera Engineering

According to the report of Axis Securities, Sansera Engineering's revenue and EBITDA have beaten the estimates. However, PAT was less than expected. The company has a wide portfolio of products across more than 80 product families serving 95 auto and non-auto customers in 26 countries.

The brokerage believes the company is progressing towards its 60:20:20 outlook of revenue contribution from auto-ICE, auto tech agnostic, and xEV, non-auto.

As of March 24, the company's peak annual revenue from new orders stood at Rs 1,592 crore, of which about 51 per cent came from the non-auto ICE segment. 

Sansera Engineering: Share price target

Axis Securities has maintained a 'buy rating' for the stock and has increased the target price by Rs 50 per share to Rs 1,270 each. On May 18, 2024, the shares of the company closed at Rs 1058.95 each, up 1.5 per cent from its previous close (May 17). In this way, the stock can rise up to 20 per cent from the current price.

Sansera Engineering share price history

The Sansera Engineering stock has given more than 22 per cent returns in six months. While, the stock has jumped 36 per cent in one year, and around six per cent in the last week.