Sansera Engineering shares rise up to 7%; Nomura, Goldman Sachs on future outlook 

Shares of Sansera Engineering Ltd rose up to 7% on Monday on the back of Q2 earnings. Sansera Engineering shares gained 6.73% to Rs 4713 against the previous close of Rs 4415.75. Later, the stock closed 5.42% higher at Rs 4655. Market cap of the firm rose to Rs 29,055 crore.

Post Q2 earnings, brokerages Nomura and Goldman Sachs have maintained their bullish stance on Sansera Engineering driven by robust growth in its aerospace, defence and semiconductor (ADS) business.

While Nomura raised its target price to Rs 4,916 from Rs 4,278, retaining its Buy rating, Goldman Sachs reiterated its Buy recommendation with a revised target of Rs 5,350, compared with Rs 5,260 earlier.

Both brokerages see the company's increasing exposure to high-margin precision engineering segments as a key driver of earnings growth and margin expansion.

Nomura on Sansera Engineering

Nomura said Sansera Engineering's Q2 FY27 performance exceeded expectations at the operating level, with EBITDA margins benefiting from a favourable product mix and lower raw material costs.

The brokerage has consequently increased its target price to Rs 4,916 from Rs 4,278 and maintained its Buy rating. It believes the current valuation of around 34 times FY29 estimated earnings remains attractive, given the projected 33% EPS CAGR over FY26-FY29 and the potential to sustain earnings growth above 20% beyond FY29.

Goldman Sachs on Sansera Engineering

Goldman Sachs also maintained its positive view on Sansera Engineering, describing its Q2 FY27 performance as broadly in line with expectations.

The brokerage highlighted the strong performance of the ADS segment, which has emerged as a major growth engine. The business accounted for 15% of Sansera's revenue in Q2 FY27, compared with just 4% in the corresponding quarter last year.

ADS revenue surged 206% year-on-year and increased 11% sequentially, coming in 38% above Goldman Sachs' estimates. The segment's order book stood at Rs 5,870 crore, with execution expected over the next five years.

Sansera's management has guided for overall FY27 revenue of Rs 4,250-4,300 crore, representing growth of around 23% year-on-year.

Goldman Sachs identified the addition of new semiconductor customers and opportunities in aerospace engine components as important triggers for future growth.

The company is working towards onboarding its second semiconductor customer in Q3 FY27. In aerospace, it expects to complete customer-supervised validation of critical engine components, including blisks, during the December quarter. Successful validation could position Sansera for commercial awards under subsequent engine programmes.

It has increased its 12-month target price to Rs 5,350 from Rs 5,260 and maintained its Buy recommendation.

The outlook from both brokerages highlights the growing importance of Sansera Engineering's diversification into aerospace, defence and semiconductor components.

The sharp increase in the ADS segment's revenue contribution, a sizeable executable order book and opportunities to secure new customers could improve the company's business mix and support higher operating margins.