Sansera Engineering Limited (SANSERA) AI Stock Analysis

• Market Cap: ₹126.10B
• Dividend Yield: 0.19%
• Average Volume (3M): 9.18K
• Price to Earnings (P/E): 37.9
• Beta (1Y): 1.56
• Revenue Growth: 4.56%
• EPS Growth: 14.68%
• Country: IN
• Employees: 2,377
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 13.20
• Shares Outstanding: 62,224,270
• 10 Day Avg. Volume: 8,352
• 30 Day Avg. Volume: 9,180
• PEG Ratio: 4.50
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 2.38
• P/FCF Ratio: -26.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,387.50
• Price Target Upside: 21.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 49.09
• Revenue Forecast (FY): ₹33.94B

• Rating: 70 Outperform
• Price Target: ₹2,154.00 ▲(10.01% Upside)
• Action: Upgraded Date: 02/13/26
• Date: Action: Upgraded 02/13/26

The score is primarily supported by strong financial performance (growth and margins) and a clear technical uptrend. It is tempered by negative free cash flow from high capex and a rich valuation (high P/E with minimal dividend yield), alongside overbought technical signals that add near-term risk.

Positive Factors

Precision manufacturing & OEM exposure

Sansera’s in-house precision forging and machining for critical powertrain, transmission and chassis parts creates high technical qualification and switching costs with OEMs. That durable engineering capability supports long-term program wins, higher content per vehicle, and barriers to entry.

Sustained revenue growth and improving margins

Multi-year revenue growth combined with rising gross and EBITDA margins reflects expanding scale and better cost control. Persistent top-line expansion and margin improvement indicate durable demand and operational leverage, supporting sustainable profitability over coming quarters.

Positive operating cash generation

Consistently positive and growing operating cash flow shows the manufacturing business converts earnings into cash. This structural cash generation supports working capital needs, debt servicing and reinvestment capacity, strengthening resilience despite high capex cycles.

Negative Factors

High absolute debt level

Despite improvements in debt ratios, Sansera’s high absolute total debt raises fixed interest obligations and reduces strategic flexibility. Elevated leverage increases sensitivity to demand slowdowns and raises refinancing and interest-rate risks over a multi-quarter horizon.

Negative free cash flow from heavy capex

Persistent negative free cash flow driven by sustained heavy capital expenditures means the business is cash-absorbing while scaling capacity. That pattern constrains discretionary spending, may require external financing, and raises execution risk if new capacity takes time to monetize.

Operating margin pressure (EBIT decline)

A slight decline in EBIT margin indicates rising operating cost pressure or investments compressing near-term operating profitability. If margins do not recover, combined with high capex and debt costs, returns on incremental sales could be muted over the medium term.

Sansera Engineering Limited Business Overview & Revenue Model

Company Description

Sansera Engineering Limited engages in the manufacture and sale of high precision components for automotive and non-automotive sectors in India, Europe, the United States, and internationally. The company offers automotive components, such as connecting rods, rocker arms, finger followers, balancer shafts, gear shifter forks, suspension and steering parts, assembly components, aluminum parts, drivetrain and rotar parts, sprockets, adapters, rocker shafts, housing shift lever shafts, lever and arm shifts, shaft propeller, spacer input gear, shaft control, braking system parts, tans axle parts, generator shafts, valve bridges, braking assembly parts, transmission parts, and chassis parts for 2 wheelers, 2 wheelers – EV, passenger vehicles, 4 wheelers, and commercial vehicles. It also provides products for off-road vehicles; industrial and stationery engines; agriculture; aerospace; and medical implants. In addition, the company offers forging and other related services. Sansera Engineering Limited was incorporated in 1981 and is headquartered in Bengaluru, India.

How the Company Makes Money

Sansera makes money primarily by manufacturing and supplying precision components and assemblies to OEMs and tier-1 customers under business-to-business supply arrangements. Its core revenue stream is the sale of forged and machined parts (and, where applicable, sub-assemblies) produced using its in-house capabilities, which typically include processes such as precision forging and precision machining, and may include value-added operations required to meet customer specifications. Revenue is generally driven by (a) supply volumes linked to customers’ production schedules, (b) product mix (higher value components and assemblies tend to realize higher realizations), and (c) long-term customer programs where the company is qualified as an approved supplier for specific parts. Additional earnings can come from expanding content per vehicle/equipment through new part wins, increasing share of business with existing customers, and diversifying into non-automotive applications to reduce cyclicality. Specific details on pricing mechanisms (e.g., pass-through clauses), customer concentration, named partnerships, or segment-wise revenue splits: null.

Sansera Engineering Limited Financial Statement Overview

Summary

Strong multi-year revenue growth and improving gross margin support profitability, with a stable equity base and improving leverage metrics. The main offsets are high total debt and negative recent free cash flow driven by heavy capital expenditures.

Income Statement

Sansera Engineering Limited has demonstrated strong revenue growth, with a consistent upward trajectory from 2020 to 2025. The gross profit margin has improved significantly, indicating enhanced efficiency and cost management. The net profit margin and EBITDA margin are also robust, reflecting solid profitability. However, the EBIT margin shows a slight decrease, suggesting room for improvement in operating efficiency.

Balance Sheet

The balance sheet reflects a strong equity base, with the equity ratio improving over the period, indicating financial stability. The debt-to-equity ratio has reduced, highlighting effective debt management. Return on equity is healthy, driven by increasing net income. However, the company has a high level of total debt, which may pose a risk if not managed carefully.

Cash Flow

Operating cash flow is positive and growing, indicating reliable cash generation from core operations. However, free cash flow has been negative in recent years due to high capital expenditures. The operating cash flow to net income ratio suggests adequate cash conversion. The company should focus on optimizing capital expenditures to improve free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	31.01B	30.17B	28.11B	23.31B	19.89B	14.57B
Gross Profit	16.70B	11.59B	4.06B	9.46B	8.27B	6.60B
EBITDA	5.67B	5.35B	4.82B	3.94B	3.50B	2.95B
Net Income	2.49B	2.15B	1.86B	1.46B	1.30B	1.08B
Balance Sheet
Total Assets	39.76B	37.36B	27.93B	24.63B	22.21B	19.29B
Cash, Cash Equivalents and Short-Term Investments	3.65B	4.28B	639.89M	616.02M	483.43M	647.57M
Total Debt	4.39B	4.07B	8.91B	8.04B	7.46B	6.40B
Total Liabilities	10.81B	9.68B	14.29B	12.81B	11.86B	10.40B
Stockholders Equity	28.77B	27.50B	13.47B	11.68B	10.23B	8.78B
Cash Flow
Free Cash Flow	-517.17M	-2.70B	356.94M	132.14M	-544.44M	1.21B
Operating Cash Flow	2.05B	3.23B	3.74B	2.56B	2.13B	2.56B
Investing Cash Flow	-1.88B	-9.67B	-3.68B	-2.41B	-2.55B	-1.39B
Financing Cash Flow	-840.00K	6.48B	-79.60M	-61.68M	465.46M	-1.39B

Sansera Engineering Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1957.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SANSERA, the sentiment is Positive. The current price of 1957.95 is below the 20-day moving average (MA) of 2207.46, below the 50-day MA of 1996.77, and above the 200-day MA of 1584.40, indicating a neutral trend. The MACD of 14.24 indicates Positive momentum. The RSI at 44.80 is Neutral, neither overbought nor oversold. The STOCH value of 13.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SANSERA.

Sansera Engineering Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNRCON	74 Outperform	₹34.04B	11.13	―	0.16%	-42.73%	-44.36%
SANSERA	70 Outperform	₹126.10B	37.94	―	0.19%	4.56%	14.68%
DYNAMATECH	64 Neutral	₹63.39B	275.65	―	0.07%	2.51%	-63.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TEXRAIL	63 Neutral	₹36.37B	32.08	―	0.56%	13.15%	6.26%
SANGHVIMOV	59 Neutral	₹20.14B	25.81	―	0.55%	49.97%	-2.91%
CCCL	54 Neutral	₹6.56B	55.89	―	―	35.46%	-85.85%

Sansera Engineering Limited Corporate Events

Sansera Engineering Schedules Analyst and Investor Plant Visit in Bangalore

Sansera Engineering Limited has scheduled a group meeting with analysts and institutional investors at its plants in Bangalore on 17 March 2026 at 10:00 a.m. The engagement underscores the company’s continuing investor outreach efforts as a listed entity on NSE and BSE.

During the visit, management will confine discussions to information already available in the public domain, signalling adherence to disclosure norms under SEBI’s Listing Obligations and Disclosure Requirements. The company also cautioned that the schedule may change due to exigencies affecting either the participants or Sansera.

Sansera Incorporates JV Subsidiary With Nichidai to Formalise Strategic Partnership

Sansera Engineering Limited has incorporated Nichidai Sansera Private Limited as a wholly owned subsidiary, formalizing its previously announced joint venture with Japan’s Nichidai Corporation. The new entity, registered in Karnataka on February 25, 2026, will later receive capital from both partners, after which shareholding will shift to Nichidai holding 60% and Sansera 40%.

The step marks a structural milestone in Sansera’s collaboration with Nichidai, positioning the company to leverage its partner’s technology and expertise once the planned fund infusion and share allotment are completed. The joint venture structure is expected to support longer-term strategic expansion and could strengthen Sansera’s competitive positioning and offerings for stakeholders in its target markets.

Sansera Engineering Reports No Demat or Remat Requests in December Quarter

Sansera Engineering Limited has certified to both NSE and BSE that it received no requests for dematerialisation or rematerialisation of its equity shares during the quarter ended 31 December 2025, in compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The confirmation, supported by a certificate from its registrar and transfer agent MUFG Intime India Private Limited, indicates operational stability in the company’s shareholding structure and continued adherence to securities market regulatory requirements, offering reassurance to investors and market regulators about the integrity of its equity share records.

Sansera Engineering Announces Trading Window Closure

Sansera Engineering Limited has announced the closure of its trading window in compliance with SEBI’s Insider Trading Regulations. This measure, effective from January 1, 2026, will remain in place until 48 hours after the announcement of the company’s financial results for the quarter ending December 31, 2025. This move is part of the company’s adherence to regulatory standards and aims to prevent insider trading, ensuring transparency and fairness in its financial dealings.