S J S Enterprises Ltd

- SJS Enterprises is largely debt-free and prefers to maintain a low-debt profile. - The company currently holds about INR 243 crores in cash, available for organic expansion and acquisitions. - While not opposed to taking on debt if attractive acquisition opportunities arise, there is no specific mention of imminent debt fundraising. - No mention of any planned equity fundraising in the latest call. - Capital allocation priorities include funding committed organic capex, holding cash for acquisitions, and shareholder rewards. - The company focuses on disciplined capital deployment and financial strength to fund growth internally.

- Capex investments totalling approximately INR 220-270 crores over 3 years, starting FY26, covering: - SJS Bangalore plant expansion (INR 45 crores initially planned) - SDPL chrome plating greenfield plant doubling capacity at Pune (INR 100 crores initially planned) - Cover glass and display business facilities (INR 65 crores combined for glass and display) - Cover glass & display plant: INR 40 crores for glass, INR 25 crores for display, totaling ~INR 65 crores; fully integrated display facility including optical glass manufacturing, coating, bonding, and backlight production - Chrome plating greenfield plant (Decoplast) near Pune: near completion, doubling chrome plating and painting capacity, commissioning expected in FY27 - Bangalore facility expansion partially completed, production equipment installed with commissioning by end of current quarter - Hosur plant leased facility (about 97,000 sq ft) with equipment on order, expected investment and ramp-up within FY27 - Inorganic acquisitions targeted in North America, Southeast Asia, and India; cash reserves of ~INR 243 crores available for acquisitions and expansion

- SJS expects to sustain strong growth momentum supported by robust financial performance and execution. - The company targets export revenue contribution to increase to 14%-15% by FY28 through deeper market penetration and new geographies. - Order book covers over 85% of FY27 forecasted revenue, indicating strong execution visibility. - Growth is expected to outperform the underlying industry by 1.5x to 2x in FY27. - Focus on premiumization and differentiated technology-driven offerings to enhance content per vehicle. - Capacity expansions underway, with emphasis on balancing capacity with demand. - Export markets viewed as underpenetrated with strong pipeline and global customer interest. - Potential inorganic acquisitions in North America, Southeast Asia, and India to support growth. - New product ramp-ups, especially consumer business programs, expected to drive medium-term growth.

- SJS Enterprises expects to outperform industry growth by 1.5x to 2x in FY27, driven by strong order visibility and expanded capacity. - Focus on premiumization and advanced aesthetic/functional products aims to boost realizations and content per vehicle. - Operating margins are expected to stabilize around 27%-28%, slightly below the record 29.6% margin recorded in FY26 but maintaining strong profitability. - Continued export growth targeting 14%-15% of consolidated revenue by FY28, adding new geographies and customers. - Free cash flow generation and net cash position support disciplined capital expenditure and potential inorganic growth. - Earnings growth to be supported by operational efficiencies, richer product mix, and growing export contributions. - The kit value for passenger vehicles is projected to increase 5x to 8x by early FY28, enhancing revenue and profit potential.

- The current order book stands at over 85% of the FY27 forecasted revenue, indicating strong execution visibility. - There is a steady growth in export revenues supported by traction with global OEMs, reinforcing confidence in achieving the export revenue target of 14%-15% by FY28. - The company has a very strong pipeline and proactive business development activity ongoing to book new capacities, including the new Bangalore plant and chrome plating facility. - Discussions with customers to book new capacity are progressing well, with some orders already placed and equipment installed. - The capacity expansions align with expected demand and export growth, ensuring synchronized capacity creation ahead of new business. - The business anticipates an upside potential beyond the current targets as export markets remain underpenetrated with large opportunity sets.