SJS Enterprises’ share price has surged amidst record quarterly revenue, high margins, and strategic expansions into display technology, signalling a burgeoning growth story in the auto ancillary sector.
SJS Enterprises has turned into one of the more closely watched names in the auto ancillary space after a sharp run-up in its share price and a set of quarterly numbers that suggest the rally has been backed by business momentum rather than speculation alone. Trade Brains reported that the stock had more than doubled over the past year, while the company’s latest quarter showed revenue at a record level, margins near 30% and a balance sheet carrying substantial net cash.
The June quarter was the clearest signal yet that the growth story is broadening. Revenue rose 24.5% year on year to ₹261 crore, while EBITDA climbed 36.2% and held at a 30% margin. Reported profit after tax surged 115% to ₹74.4 crore, helped by a one-time gain from the sale of an unused Bengaluru facility, but even after adjusting for that item, profit still rose strongly. Trade Brains said normalised profit grew 45.2% from a year earlier, underscoring that the improvement was not driven by an accounting boost alone.
Business performance was also outpacing the wider market. The company’s automotive sales grew 32.4% year on year, well ahead of broader industry growth, and that stretch of outperformance has now lasted for 27 consecutive quarters, according to the report. Passenger vehicles were the strongest segment, exports jumped sharply and domestic sales also advanced at a steady pace. Capital Market said the company has also been winning new orders from Mahindra and Suzuki, while expanding capacity in Pune and Hosur to support demand.
The financial footing remains a key part of the investment case. Trade Brains said SJS ended the quarter with about ₹329 crore of net cash, compared with just ₹9.3 crore of debt, alongside strong return ratios and solid free cash flow. ICRA has also revised the company’s long-term outlook to positive, reflecting the strength of its cash generation. Management is now adding a new growth platform through a wholly owned subsidiary focused on cover glass and displays, covering manufacturing, assembly, testing and sales for automotive, consumer and other uses. The company already has a technology licence and supply agreement with BOE Varitronix of Hong Kong for optical bonding and assembly of automotive display systems in India, placing it in a segment that could benefit as vehicles become more screen-heavy and digitally integrated.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
