Sansera Engineering share price hits 52-week high amid block deal buzz

Sansera Engineering share price touched new 52-week high and gained over 5% on Thursday's session amid block deal news. According to CNBC-TV18 news report, two shareholders Ebene Ltd and CVCIGP II Employees EBENE are expected to sell 14.1% of their stake for ₹627.5 crore. Sansera Engineering shares opened at ₹882 apiece on BSE. The stock hit intrday high of ₹909.80, and low of ₹880.

According to an analyst, the stock has given a breakout from consolidation phase. The 20 DEMA, which is now around 830 will now be seen as a crucial support.

Ebene would sell 47.77 lakh shares (9% equity) and 26.76 lakh shares (5.1% equity) to CVCIGP II Employee Ebene. According to CNBC-TV18 news report, the offer price is ₹799.85-841.95 per share, and Nomura is the sole placement agency.

According to BSE data as of March 31, Ebene Ltd and CVCIGP II Employees EBENE held 18.05% and 10.11% stakes in the Bengaluru-based auto-component maker company, respectively.

"The aforesaid PE funds stake in Sansera Engineering is currently pegged at 28% and post this transaction their stake shall decline to 14% which might come for selling at some later point in time. Given the healthy order wins and intent to diversify its revenue base with target to grow at 20% sales CAGR with 20% margins and similar return ratios we have a positive view on the company. However given the floor price is at a discount to last closing price of ₹842/share, we expect stock to open negative in opening trade today," said ICICI Direct Research in its report.

ICICI Securities maintained its buy rating on Sansera Engineering stock last week, with a target price of ₹1,033.

Following a visit to Sansera Engineering's facilities and interactions with senior management, the brokerage noted that the company is aiming for approximately ₹35 billion in revenue by FY25, up from ₹23 billion in FY23, with growth driven by domestic 2W demand revival, return of growth in export markets, and expansion of the aerospace segment.

According to the brokerage, the Bidadi facility, which earned ₹2.4 billion in revenue in FY23, is aiming to quadruple that amount by FY25, with a new 4,000T press joining the existing four presses running at full capacity on the existing orderbook.

"The has no plans to enter the casting space and, with forging needs per 2W set to be more than casting value addition, it will try to add new forging parts under both steel and aluminum forging capabilities," said the brokerage in its report.

On the technical front, as per trendlyne data, the stock rose 34.4% and underperformed its sector by 9.8% in the past year.