May 12, 2025 Q4 FY25 Result Update

S.J.S. ENTERPRISES LIMITED

The Company Hits the Ground Running with Premiumization and Expanding Clientele

SJS Enterprises Ltd. (SJS) delivered a strong operating performance in Q4FY25, with
BUY
consolidated revenue at ₹2,005 mn, up 7.3% YoY and 12.3% QoQ, led by robust traction in
Current Market Price (₹) 1,030
the PV segment. Domestic revenue grew 7.1% YoY, reflecting healthy demand conditions.
12M Price Target (₹) 1,406
EBITDA came in at ₹510 mn, with margins remaining steady at 25.4% YoY/QoQ. PBT rose
to ₹406 mn, with margin expansion of 77 bps YoY to 20.2%, supported by lower finance Potential Return (%) 37
costs. PAT stood at ₹337 mn (vs ₹272 mn in Q4FY24), translating into a modest 10 bps
YoY improvement in PAT margin to 14.5%. Within the consolidated structure, SJS, WPI, Stock Data

and SJS Decoplast (formerly Exotech) contributed 50.3%, 22.5%, and 27.2% to revenues, Sector : Auto Components

respectively. Segment-wise, revenue was led by PVs (44.2%), followed by 2Ws (32.0%), Face Value (₹) : 10

consumer (17.9%), and others (5.9%). The business remained predominantly domestic, with Total MCap (₹ bn) : 32

India contributing 92.7% and exports the balance 7.3%. Free Float MCap (₹ bn) : 25
52-Week High / Low (₹) : 1,347 / 600
On a full-year basis, SJS reported FY25 revenue of ₹7,605 mn on expected lines, up at robust
BSE Code / NSE Symbol : 543387 / SJS
45% YoY, driven by sustained growth across segments. Domestic revenue stood at ₹7,037
Bloomberg : SJS IN
mn, up 21.4% YoY, supported by strong double-digit growth in PVs (+28.4% YoY) and the
Sensex / Nifty : 79,454 / 24,008
consumer segment (+18.8% YoY). Export revenue increased 17.6% YoY to ₹567.9 mn, aided
by a 37.4% YoY rise in PV exports. EBITDA for FY25 came in at ₹1,945 mn, with margin
expanding by ~150 bps YoY to 25.7%, reflecting improved operating leverage. PBT rose to Shareholding Pattern

₹1,529 mn (margin: 20.1%, +220 bps YoY), driven by significantly lower interest expenses. (%) Mar-25 Dec-24 Sep-24 Jun-24

PAT for the year stood at ₹1,188 mn, up 39.2% YoY, with PAT margin improving ~200 bps Promoter 21.60 21.61 21.80 21.80

YoY to 15.6%. For FY25, the revenue contribution from SJS/WPI/SJS Decoplast stood at MF's 22.40 21.97 23.53 24.28
51.7%/22.7%/25.6%, respectively, while the product mix was led by PVs (40.5%), 2Ws FPIs 16.91 16.55 16.72 15.95
(34.0%), consumer (19.5%), and others (6.1%). AIF's 3.19 3.25 3.50 4.41

Growth Driven by Premiumization and Next-Gen Product Expansion Insurance 3.27 3.31 3.05 3.06

SJS Enterprises’ long-term growth trajectory is expected to be underpinned by its strategic Others 32.63 33.31 31.40 30.50

focus on premiumization, aimed at capturing higher value within its addressable markets. Source: BSE

The company is actively expanding its portfolio of next-generation aesthetic products—such

as in-mold labeling (IML), in-mold decoration (IMD), optical plastics, touch screen cover Price Performance
glass, and illuminated logos—which are increasingly becoming integral to the evolving (%) 1M 3M 6M 12M
design language of modern PVs and premium consumer goods. These high-end offerings SJS 22.2% 2.4% -15.5% 68.8%
command significantly higher realisation per unit, with kit values for PVs estimated to be Nifty 50 8.3% 1.9% -0.6% 9.3%
4–6x higher post the WPI acquisition, compared to traditional legacy products. * To date / current date : May 9, 2025

Key Financials FY 23 FY 24 FY 25 FY 26E FY 27E

Total sales (₹ mn) 4,330 6,278 7,605 8,961 10,367 SJS vs Nifty 50

EBITDA margins (%) 24.6% 24.2% 25.7% 26.2% 26.7% 250

PAT margins (%) 15.5% 13.6% 15.6% 16.6% 16.9% 200

EPS (₹) 22.1 27.5 37.9 47.6 56.0
150
P/E (x) 44.7 35.9 26.0 20.8 17.6
100
P/BV (x) 7.0 5.5 4.5 3.7 3.1
EV/EBITDA (x) 28.9 20.5 15.7 13.1 10.8 50
SJS Enterprises NIFTY 50
ROE (%) 16% 16% 18% 18% 18% 0
May-24 Aug-24 Nov-24 Feb-25 May-25
ROCE (%) 29% 26% 26% 27% 28%

Ashwin Patil | AVP Research Rahul Deshmukh | Research Associate

ashwin_patil@[Link] [Link]@[Link]
LKP Research
S.J.S. ENTERPRISES LIMITED | Q4 FY25 Result Update

Contribution from these next-gen products has already scaled up meaningfully, accounting for
nearly 28% of consolidated revenue in FY25, reflecting rising customer adoption. The company’s
entry into the cover glass segment further opens a new high-growth vertical, reinforcing its
positioning in the premium category—where differentiated, value-added products continue to
outpace demand for conventional offerings.
Strengthens Market Position with Strategic Wins
SJS Enterprises achieved a key breakthrough by securing orders from Hero MotoCorp, India’s
largest two-wheeler OEM, with supplies already underway across multiple models. This
development positions SJS as a trusted vendor to all leading 2W OEMs in the country. Hero
currently procures decals and logos worth ~₹2.5 bn annually, presenting a significant wallet-
share opportunity for SJS, alongside potential for cross-selling its broader product portfolio. On
the export front, SJS has secured new business awards from marquee clients such as Stellantis
and Whirlpool. Supplies to Stellantis are slated to commence from Q2FY26, with volumes
expected to scale gradually over the year. Expanding international revenue remains a strategic
focus, with the company targeting exports to account for ~14–15% of consolidated revenue by
FY28E (vs 7.3% in FY25). Domestically, SJS has also begun supplying in-mold labeled (IML) parts
to Mahindra’s Born Electric platform—marking its first entry into Mahindra’s EV portfolio with
IML technology. These new order wins, particularly from OEMs like Hero and Stellantis, are
expected to meaningfully augment revenue visibility and underpin management’s guidance of
delivering ~2x the industry growth in FY26E. Notably, the company’s FY26 execution pipeline is
already over 85% covered, lending strong revenue predictability.

SJS Enterprises continues to deliver superior margin performance, with EBITDA surpassing
expectations, while revenue growth remains steady. We revise our estimates upwards,
projecting a Revenue/EBITDA CAGR of ~17%/19% over FY25–FY27E. Strategic acquisitions like
SJS Decoplast and WPI, coupled with sustained innovation, have strengthened its competitive
positioning. The company is well-placed to capitalize on premiumization-led demand and
sector tailwinds. With industry-leading margins, strong return ratios (ROE in high teens, ROCE
>25%), and attractive valuations, we assign a P/E of 24x on FY27E EPS of ₹59 and maintain a
BUY rating with a TP of ₹1,406.

LKP Research 2
S.J.S. ENTERPRISES LIMITED | Q4 FY25 Result Update

Quarterly Financial Snapshot (Consolidated)

YE Mar (₹ mn) Q4 FY25 Q3 FY25 QoQ growth Q4 FY24 YoY growth
Revenue 2,005 1,786 12.3% 1,868 7.3%
COGS 937 828 13.1% 850 10.2%
Employee Expenses 240 199 20.5% 191 25.6%
Other Expenses 318 306 4.1% 351 -9.3%
EBITDA 510 453 12.6% 476 7.2%
EBITDA Margins % 25.4% 25.4% 8bps 25.5% -4bps
Other Income 18 29 -38.6% 19 -7.6%
Depreciation & Amortalization 115 114 1.0% 110 5.0%
Finance Cost 7 9 -26.9% 22 -68.6%
PBT 406 359 13.2% 364 11.6%
Tax 69 81 -15.7% 92 -25.4%
Adj PAT 337 277 21.7% 272 24.1%
Adj PAT Margins% 16.8% 15.5% 130bps 14.5% 227bps
Exceptional items 0 0 N/A 0 N/A
Reported PAT 337 277 21.7% 272 24.1%
Source: Company, LKP Research

LKP Research 3
S.J.S. ENTERPRISES LIMITED | Q4 FY25 Result Update

Key Takeaways from Conference Call:

Industry Outlook & Company Guidance:
• SJS expects 2W growth in FY26E to be in high single digits and PVs growth in mid-single
digits. SJS targets to outperform the underlying industry growth by about 2x in FY26E.

• Consumer business experienced some soft demand in Q4 FY25, particularly in Europe, but
the long-term growth story is positive. Overall, the consumer business grew strongly for the
full year FY25.
Capacity Expansion:
• The exchange facility at Pune is on track for commissioning in H1FY26E. This facility will
enhance manufacturing capabilities and meet growing demand for premium chrome-plated
and painted products.

• An additional capex of ~ ₹400 to 450 mn is planned during FY26 to increase production

capacity at the SJS plant in Bangalore due to significant new business opportunities.

• For the SJS Decoplast (formerly Exotech) expansion, ₹1,000 mn were allocated. ~ ₹300 mn
has been incurred so far, with the remaining ₹700 mn expected to be incurred during the
FY26E.

• For the cover glass business, 400 mn rupees have been allocated for expansion, which will
happen during FY26 and FY27.

• Beyond these special capex plans (Exotech/SJS Decoplast, cover glass, SJS Bangalore), the
company also plans for maintenance capex, which is expected to be closely ₹150 to ₹200
per annum.

• The total planned capex for FY26E is ~ ₹1,500 mn.

• Looking at a 3-year scenario, the total capex allocation is planned to be close to ₹2,200 mn.
New Business Wins:
• Secured a breakthrough with Hero Motocorp in April 2025, being awarded businesses across
multiple models, positioning SJS as a trusted supplier to all leading 2W OEMs. Products
supplied to Hero initially will be decals and logos. Hero’s current buying for decals and logos
is approximately ₹2,500 mn, and SJS hopes to win a significant share of this, plus cross-
selling opportunities. Supplies have started.

• Successful new business awards in export markets with customers like Stellantis and
Whirlpool. The Stellantis business is close to ₹3,000 mn over the next 7-8 years, with supplies
starting in Q2FY26E and gradually ramping up. The Whirlpool order (₹500 mn over 5 years) is
also expected to start supplies around Q2FY26E.

• Started supplying IML parts to the Mahindra born electric range of vehicles.
Export Growth and Strategy:
• Growing the export business is a strategic priority, with a target to increase exports to ~14-
15% of consolidated revenue by FY28E.

• Export business is considered more profitable compared to domestic business. The company
believes India, especially in the printing industry, has a natural advantage globally, making
them competitive even with potential tariffs.

LKP Research 4
S.J.S. ENTERPRISES LIMITED | Q4 FY25 Result Update

Focus on Premiumization and New Technologies:

• Premiumization is a key growth pillar. Contribution from new generation products increased
from ~13% of total revenue in FY21 to ~28% in FY25. New technologies include cover glass
(for displays) and IML/IMD products. The IML/IMD market in India is still developing but has
huge potential, with product values per vehicle ranging from ₹500 to ₹5,000. Investment in
Walter Pack was made due to this potential.
Capacity Utilization:
• SJS plant: ~70%.

• SJS Decoplast (formerly Exotic Plastics): Running at 95%, necessitating the expansion.

• Walter Pack: ~75%.

Tariffs:
• Management is not unduly bothered by potential tariffs (e.g., from the US) as India is at
the lower end of the tariff spectrum compared to competitors, and manufacturing in the
US is cost-prohibitive for their products. OEMs are also de-risking by sourcing content from
countries like India.
ESOP Charge:
• The ESOP charge for the FY25 was ₹~80 mn and is expected to remain similar

LKP Research 5
 S.J.S. ENTERPRISES LIMITED | Q4 FY25 Result Update

Income Statement Balance Sheet

(₹ mn) FY 24 FY 25 FY 26E FY 27E (₹ mn) FY 24 FY 25 FY 26E FY 27E
Total Revenues 6,278 7,605 8,961 10,367 Equity and Liabilities
Raw Material Cost 2,849 3,559 4,178 4,835 Equity Share Capital 310 313 313 313
Employee Cost 708 856 966 1,098 Reserves & Surplus 5,306 6,579 8,070 9,824
Other Exp 1,199 1,236 1,469 1,665 Total Networth 5,616 6,892 8,383 10,137
EBITDA 1,522 1,954 2,348 2,769 Non-current Liabilities
EBITDA Margin(%) 24.2% 25.7% 26.2% 26.7% Long term debt 400 0 150 200
Depreciation 387 447 519 596 Deferred tax assets/liabilities 258 179 300 300
EBIT 1,135 1,507 1,828 2,173 Other non curent liabilities 182 256 340 340
Total non-current liab & provs 840 434 790 840
EBIT Margin(%) 18.1% 19.8% 20.4% 21.0%
Current Liabilities
Interest 85 56 24 25
Trade payables 616 691 710 821
Other Income 77 78 170 176
Short term provs+ borrowings 326 204 200 162
PBT 1,126 1,529 1,975 2,323
Other current liabilities 499 521 760 760
PBT Margin(%) 17.9% 20.1% 22.0% 22.4%
Total current liab and provs 1,440 1,415 1,670 1,743
Tax 273 340 484 569 Total Equity & Liabilities 7,896 8,741 10,843 12,721
PAT 854 1,188 1,491 1,754 Assets
PAT Margins (%) 13.6% 15.6% 16.6% 16.9% Net block 1,803 1,469 2,639 2,847
Exceptional items 0 0 0 0 Capital WIP 23 62 45 52
Adj PAT 854 1,188 1,491 1,754 Intangible assets 2,601 2,478 2,351 2,388
Adj PAT Margins (%) 13.6% 15.6% 16.6% 16.9% Non current investments 60 71 71 71
Long term loans & advances 6 0 0 0
Key Ratios Other non current assets 476 591 591 591
Total non current assets 4,968 4,672 5,698 5,949
YE Mar FY 24 FY 25 FY 26E FY 27E
Cash and cash equivalents 121 170 48 923
Per Share Data (Rs)
Bank balance other than cash 32 39 39 39
Adj. EPS 27.5 37.9 47.6 56.0
Inventories 720 695 1,133 1,311
CEPS 40 52 64 75
Trade receivables 1,624 1,751 2,381 2,755
BVPS 181 220 268 324 Other current assets 431 1,416 1,544 1,744
Growth Ratios(%) Total current Assets 2,928 4,070 5,145 6,771
Total revenues 45.0% 21.1% 17.8% 15.7% Total Assets 7,896 8,741 10,843 12,721
EBITDA 42.7% 28.4% 20.2% 17.9%
PAT 26.9% 39.2% 25.5% 17.7%
EPS Growth 24.5% 37.9% 25.5% 17.7%
Cash Flow
CEPS growth 34.4% 30.6% 22.9% 16.9% (₹ mn) FY 24 FY 25 FY 26E FY 27E
Valuation Ratios (X) PBT 1,126 1,529 1,975 2,323
PE 36 26 21 18 Depreciation 387 447 519 596
P/CEPS 25 19 15 13 Interest 85 56 24 25
P/BV 5 4 4 3 Chng in working capital -220 61 -656 -440
EV/Sales 5 4 3 3 Tax paid -332 -492 -484 -569
EV/EBITDA 21 16 13 11 Other operating activities 40 28 0 0
Operating Ratios (Days) Cash flow from operations (a) 1,087 1,630 1,378 1,935
Inventory days 77 73 75 80 Capital expenditure -301 -387 -1,545 -848
Chng in investments 1,043 -456 -170 -200
Recievable Days 74 81 82 81
Other investing activities -2,074 -143 0 0
Payables day 67 67 61 58
Cash flow from investing (b) -1,333 -986 -1,715 -1,048
Net Debt/Equity (x) 0.02 0.00 0.01 -0.02
Free cash flow (a+b) -246 644 -337 887
Profitability Ratios (%)
Inc/dec in borrowings 157 -525 240 12
ROCE 26% 26% 27% 28%
Interest paid -77 -34 -24 -25
ROE 16% 18% 18% 18%
Other financing activities 207 -37 0 0
Cash flow from financing (c) 287 -596 216 -13
Net chng in cash (a+b+c) 42 48 -122 874
Closing cash & cash equivalents 121 170 48 923

LKP Research 6
S.J.S. ENTERPRISES LIMITED | Q4 FY25 Result Update

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