There may be many reasons for pledging of share with Banks or FI’s, we never know what purpose it would have been done for.
My take, may be a personal reason might be there for promoters doing that. Not linked to business operations.
Just analysing based on logic
@Thomala_Sainath - Yeah even I was thinking of Personal reasons mostly, which ideally is not a good sign from investor perspective. I guess with just 4.3% pledged, it might be ok for now. But might need to monitor further
You’re right, around Dec 2024 promoter KA Joseph had pledged about 4.3% of shares. But as per the Q1 FY26 shareholding report, those shares have now been fully unpledged. Looks like it was just a short-term arrangement.
@vikasreddy - I still see the pledge as 4.29% in Screener. Can you please cross-check? Also can you provide a link to the shareholding report where you saw it as unpledged?
SJS Enterprises 1Q FY26 concall notes:
• targeting 2x industry volume growth
• delivered 22.8% growth in automotive sector vs 1.2% industry volume growth
• focus on premiumization and new customer additions
• 25% revenue from new technology products in 1Q26
• hero motocorp added as marquee customer; 250 cr addressable market with hero
• Export target of 14%-15% of consolidated revenue by FY28 (currently 6.7%)
• Export business wins from Stellantis, Whirlpool, Autoliv, FCA
• walter pack faced challenges this quarter due to concentration risk with legacy customers and model changes
• capacity expansion projects underway at pune and bangalore
• 100cr capex at SJS Decoplast - chrome plating and painting lines; operational by 3Q
• technology partnership discussions underway for display business
• cover glass revenue start expected in FY27
• new greenfield project at SJS Bangalore and optical display facility at Hosur
• New business from mahindra’s born electric vehicle range
• Walter Pack product development lead time 7-9 months; new mega businesses expected in ~1 year
• Asset turnover target of 3-4x for new facilities
• premiumization and cross-selling driving content per vehicle growth
• stellantis and whirlpool deliveries from 2Q
Heyy Paras,
What are the factors/growth levers behind a 45 percent growth for FY’27 in your assumption?
Disc: Invested
Management has said their capex of 100 CR goes with asset turnover of 3-4x is going to show impact in FY 27, so if we add nominal growth of 10-15% on regular base + this new capex going live it could fuel in growth for the year.
Disc: Not invested currently used to own but now track the business.
This is what we call double counting. The nominal growth requires the capex.
Without the capex the nominal growth won’t happen. Maybe because of capex the growth will be slightly more than nominal growth
Humbly disagree, the business also grows on better capacity utilization, margin expansion, product mix change, interest cost reduction, etc so it’s not that growth = capex in all the scenarios.
The goal of the analysis is to take probabilistic approach towards where the company might head to if the company plays it’s card right, rest nobody knows the future and we can only position ourselves 
seems in line with their desire to expand more on cover classed capabilities
All displays are imported, TAM is 800-1000cr right now and can grow to 3000-4000cr in next 5 years
content per vehicle can potentially double from classed capabilities, current content vehicle is 5000-6000 and with display they could do 13000-14000.
MOU and it’s capabilities would see impact in fy27-28
We are sharing this analysis as part of the ValuePickr.com community discussion. The intent is to exchange perspectives, identify blind spots, and test investment theses collaboratively. Fellow members’ inputs on risks, margin sustainability, and growth visibility will add immense value to the discussion.
SJS Enterprises is engaged in the business of manufacturing decorative aesthetic products primarily for the automotive and consumer appliance industry such as automotive dials, overlays, badges and logos.
The Q1 FY26 results of SJS Enterprises illustrate how a mid-cap auto ancillary company applies financial discipline and strategic foresight to drive long-term value. 11.2% Y-o-Y revenue growth, coupled with 27.6% and 16.5% EBITDA margins and PAT margins, respectively, reflects pricing power and judicious cost management. Prudent leverage management is reflected in the net cash balance of INR 1,311.4 million. Both ROCE at 29.5% and ROE at 19.1% indicate good capital allocation, as would be the case with value creation sustained in the long term if returns are more than the cost of capital.
CAGR captures smoothed annual growth in a metric, excluding short-term volatility. At SJS Enterprises, the 1-year CAGR of 53.7% and 3-year CAGR of 52.9% represent high short- and medium-term growth rates, whereas the 5-year CAGR of 24.2% represents stable long-term performance. Overall, it indicates the contrast between short-term acceleration and long-term consistency, emphasising the need to measure both horizons when evaluating financial health.
SJS Enterprises has outpaced the auto industry for 23 consecutive quarters. In Q1 FY26, whereas the 2-wheeler industry recorded just 0.7% growth, SJS reported 32.7%. In passenger vehicles, its growth was 13.8% compared to the industry’s 3.4%. On a combined 2W+PV basis, SJS recorded 22.8% growth compared to the industry’s 1.2%, nearly 19 times greater. This good performance enabled the company to achieve 11.2% consolidated revenue growth with the 2W segment being the major contributor.
The firm’s 22.8% automotive revenue growth against industry growth of 1.2% is a proxy for competitive advantage by differentiation. Its premiumization efforts increase kit value per customer, and the acquisition of clients such as Hero MotoCorp bolsters the resilience of customer relationships as a strategic resource. Aspirations to lift export contribution to 14-15% of revenues by FY28 are international diversification aligned with market development strategies.
Exotech’s capacity expansion through a new plant is informed by economies of scale and disciplined investment, with a projected turnover of 3x-4x and a ROCE target of at least 20%. This demonstrates application of investment appraisal techniques such as IRR and NPV, though the execution risks are still there.
The display glass and display program is a case of adjacency diversification, whereby fundamental design skills are pushed into more advanced technology segments. Although the potential upside is large, the timing until FY27 and absence of definite orders underscore the tension between opportunity for innovation and execution risk.
Overall, SJS Enterprises demonstrates how innovation, customer diversification, and prudent financial management can build long-term value. The main questions are whether margins over 25% can be maintained with internal funding of expansion, whether Walter Pack India can materially recover, and whether slowdowns in display technology will improve long-term positioning or lose ground.
Would appreciate hearing members’ views on these issues:
Can SJS sustain >25% EBITDA margins while financing both organic and inorganic growth internally?
To what extent is timely recovery of Walter Pack India important to overall growth potential?
Do you view the cover glass/display initiative as a true long-term differentiator or a risky diversion?
With Hero MotoCorp on board and exports projected to increase, is customer concentration risk declining significantly?
At what stage should valuation multiples account for the optionality of new technology projects, in spite of risks of execution?
I think most of the re-rating has been done now, rest all questions are something we need to track quarterly based on management execution and auto sales.
Agreed. But if management is guiding for a capex impact to show operating leverage on numbers from FY27, can we say that this can compound over time?
imo we should look over how glass panel buis shapes then, at 30-40PE I don’t feel comfortable
Great quarter by the company driven by growth in both domestic as well as export sales; margin too improved due to better product mix
