Yes, I had worked on Sandhar a lot in the past. I was invested in Sandhar, but decided to switch into SJS Enterprises for two reasons:
- It is in the bracket of auto ancs with the highest gross margins, seen in this post:
- I am fairly confident that the standalone entity for SJS can maintain 30% EBITDA through most business cycles, and therefore the cyclicality for SJS is in the topline, not the margins. Sandhar went through a particularly bad pain period for margins in the last 3-4 quarters in comparison.
For these reasons, I thought SJS should command higher valuations, and I had bought into the company earlier at around 360-380 per share, and then got a very nice exit a few months later.
Now if it falls below 400 I’d be happy to pick it up again.
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