Sansera Engineering: Why Quest PMS is bullish on stock despite rally

Sansera Engineering’s blistering run-up may tempt investors to cash out, but Quest Investment Managers is holding firm. In an exclusive interview to Business Today TV, the PMS house’s chief investment officer Rakesh Vyas argued that the stock’s surge is still supported by a stronger earnings trajectory, driven by the company’s shift from a conventional auto ancillary play to a more diversified manufacturing story with exposure to aerospace and defence semiconductor (ADS) opportunities.

Why Quest Is Not Booking Out

Sansera is Quest’s largest portfolio holding, and Vyas made it clear that the investment case remains intact despite the steep rally. “It’s all around business fundamentals and business growth trajectory that we see,” he said, pushing back against the idea that the stock’s move alone should trigger profit-booking.

The market’s concern is understandable. Sansera climbed from around Rs 1,100 in May 2025 to Rs 2,800 in June 2026, and has now moved to roughly Rs 3,200. But for Quest, the stock’s re-rating appears tied to a structural change in the business mix rather than a short-lived valuation spike.

Beyond Auto Components

Vyas said Sansera, long known for its auto component business in India and export markets, has steadily expanded into newer verticals. The key pivot, according to him, is its move into what he described as the “ADS, which is Aerospace Defense Semiconductor business.”

That transition matters because it potentially lifts both growth visibility and margin quality. Vyas said the company has entered the supplier ecosystem of Boeing and Airbus, two global aircraft manufacturers with large order books and a need for dependable long-term vendors.

High Barriers, Better Margins

For investors, the bigger takeaway is not just diversification, but the economics of the new business. Vyas said this segment carries “very high entry barrier, very long leeway for growth,” adding that it could grow at “forty, fifty percent every year.”

He also underscored the profitability angle. “Margin profile in this kind of segment is maybe more than one and a half times what you make on the normal business,” he said, citing steep quality requirements and limited supplier competition.

The Earnings Story Ahead

The broader market backdrop in the conversation also pointed to selective opportunities in mid- and small-caps where earnings growth remains strong despite macro volatility. In Sansera’s case, Quest appears to be betting that the company’s evolving business mix can sustain earnings compounding over the medium term.

That is why valuation, while monitored, is not yet the decisive factor for the fund house. As Vyas put it, “the story remains fairly strong” for the next two, three and even five years, suggesting Quest sees Sansera’s rally as an outcome of business transformation rather than the end of it.