0 SANDHAR share price target reports by brokerages below. See what is analyst's view on SANDHAR share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Sandhar remains among the top five diversified auto ancillary listed entities in India. It is poised for robust business growth over next two years. We understand its current business to grow in double digits through FY20 on account of ramp up in its existing business with new clients. Based on its current product portfolio, Sandhar is expected to report Sales and PAT CAGR of 10.7% and 25% over FY19- 21E respectively. At Current Valuations (PER of 11.5xFY21), the stock is notadequately factoring in Sandhar’s core business and growth prospects in its JV’s.We maintain our BUY rating with a revised price target of Rs376 (PER of 15xFY21E).
Sandhar Continues to deliver strong operating performance with 19.8% sales growth during 9MFY19 which is much faster than its OEM clients. This growth is primarily driven by its entry in scooter segment (primarily for TVS and Hero Motocorp) and strong ramp up in its Off highway Operator Cabins Business. We anticipate its current business to grow in double digits through FY20 on account of ramp up in its existing business with new clients. We also understand its six joint ventures which are likely to be operational over the next 3-4 quarters have potential to generate ~Rs7bn of sales in FY22 and create significant value for Sandhar and its shareholders. Based on its current product portfolio, Sandhar is expected to report Sales and PAT CAGR of 16.6% and 46.4% over FY18-20E respectively. At Current Valuations (PER of 11.3xFY20/8.7xFY21), the stock is highly underpriced and not adequately factoring in Sandhar’s core business and growth prospects in its JV’s. We maintain our BUY rating with a revised price target of Rs351 (PER of 15xFY20E).
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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