Goldman Sachs maintained its “buy” rating on Sansera Engineering and raised its price target to ₹4,990 from ₹4,500 earlier, indicating an upside potential of 19% from current levels.
According to the brokerage, during the recent SEMICON event in India, both Applied Materials and LAM Research announced that they will be investing $5 billion and $1.2 billion respectively to develop their local supplier ecosystems and expand their R&D presence in India as well.
When Goldman Sachs had initiated coverage on Sansera Engineering last month, it had highlighted that both Applied Materials and LAM Research are potential long-term growth contributors to Sansera’s high-margin Automated Driving System (ADS) components supply business.
Last month, Sansera also announced a large $180 million semiconductor order win from an existing customer, and as a result, Goldman Sachs is increasing its financial year 2029 earnings estimates partially to factor in the upside potential from this incremental development.
Sansera Engineering is tracked by 16 analysts on the street, of which 11 have a “buy” rating and the other five have a “hold”.
Incidentally, Thursday, September 24, will also mark five years of Sansera Engineering becoming a public company. The stock had listed at a 9% premium to its issue price of ₹744 apiece, and over the last five years, the stock has gained 510% from its issue price.Shares of Sansera Engineering are trading 5.5% higher on Tuesday at ₹4,530.8. The stock is up 171% so far this year, putting it on course for its best calendar year since listing.