Some notes from August’22 ICRA report:
- Acquired Exotech Plastics for chrome plating business.
- It derives around 41% of its revenues from the 2W segment, 30% from PVs and the remaining from the white goods and farm equipment segments.
- The vendor switch-over cost for OEMs in SJSEL’s product segment remains low.
- Tier -1 OEMs: TVS, Bajaj, Honda motorcycles. Further, it serves reputed brands such as Whirlpool, Samsung, and Electrolux, among others, in the white goods segments. With the acquisition of EPPL, SJSEL also added four-wheeler (4W) brands such as Mahindra & Mahindra and John Deere India to its customer base.
- Operating margins to remain stable in the near term ~26%
- Top 3 products contributed to 69% of revenue. This share will go down with Exotech business and company diversifying to new products.
- The company is planning to set up a new plant for its chrome plating business at a total
cost of ~Rs. 100.0 crore. Of the total capex, the company is expected to incur ~Rs. 40.0 crore in FY2023, funded by internal accrual and cash reserves
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