Analysis: Sandhar Technologies Limited

Growth thesis

Sandhar Technologies is an Indian auto ancillary firm specializing in aluminum die-casting, sheet metal fabrication, and EV components for 2/3-wheelers. Key segments include India operations (die-casting, sheet metal, EV components), overseas subsidiaries (Europe/US), and inorganic acquisitions like Sundaram-Clayton. Growth will accelerate from the Sundaram-Clayton ADC acquisition (₹400-425 cr FY26 revenue, 9-10% EBITDA post-relocation by Apr 26), EV business scaling to ₹100 cr in 3 years, and new projects (Khed City, Sanaswadi) achieving EBT margins by Q2/Q3 FY27. Management targets 15% FY27 revenue growth and 11% EBITDA margins via pricing retrigger and operational leverage. Key execution risk: delayed overseas breakeven (currently losing ₹26 cr in 9M FY26) and Sundaram ADC margin uplift, critical to FY27 ROCE of 18%.

Why is Sandhar Technologies Limited stock rising?

• Revenue growth guidance of over 15% for FY27, excluding pricing retrigger
• Aim to double revenue every three to four years with consistent margin improvement
• EV business expected to double revenue in current financial year from INR20 crore base
• New projects (Sundaram-Clayton, Khed City, Pune) to turn around from Q2–Q3 FY27, contributing to margin expansion
• Sundaram-Clayton aluminum die-casting business to achieve EBITDA margin of 7-7.5% in FY27, reaching 9.5% in three years

Research report

companyname: Sandhar Technologies Limited ticker: SANDHAR sector: Auto Components Sandhar Technologies Limited is an Indian auto component manufacturer founded in 1987. It designs and manufactures a broad range of products for the automotive industry, serving two-wheeler, passenger vehicle, commercial vehicle, and off-highway segments. The company operates 24 manufacturing plants in India and has overseas subsidiaries in Spain, Poland, Romania, and Mexico. As of March 2025, it employed 1,689 pe...

Catalysts

capex, margin expansion

Growth guidance

FY27 revenue growth guided at 15-16% driven by pricing retrigger and industry expansion

Management consistency

mixed