SANDHAR TECHNOLOGIES LTD

DATE: October 12, 2025

NSE: SANDHAR

MID CAP

SECTOR: AUTOMOTIVE COMPONENTS

INDUSTRY: AUTO ANCILLARIES

ALL NUMBERS AND INFORMATION WHEN THE REPORT WAS PREPARED.

COMPANY OVERVIEW:

Sandhar Technologies Ltd is a leading manufacturer and assembler of automotive components with a focus on safety and security systems, metal stampings, die-casting, and electronic components for both conventional and electric vehicles. Established in 1987, the company serves major domestic and international OEMs, including Hero MotoCorp, TVS Motors, Tata Motors, Honda, Bosch, and JCB. The company operates 44 manufacturing facilities across India and 4 overseas plants in Spain, Mexico, Poland, and Romania

The company's integrated operations span R&D, manufacturing, assembly, and testing, making it one of the key suppliers in India's automotive component ecosystem. Sandhar has invested significantly in developing EV components, including DC-DC converters, motor controller units, and off-board chargers, positioning itself strategically for the electric vehicle transition.

BUSINESS SEGMENTS

Product Portfolio (9M FY24 Revenue Share)

Locking & Vision Systems: 25%

Sheet Metal Components: 15%

Aluminium Die Casting (Overseas): 14%

Cabins & Fabrication: 14%

Aluminium Die Casting (Domestic): 11%

Assemblies: 11%

Others: 10%

Category-wise Revenue Split

Two Wheelers: 58%

Passenger Vehicles: 19%

Off-Highway Vehicles: 15%

Commercial Vehicles: 2%

Others: 6%

Major Customers (Q3 FY24)

TVS Motors: 30%

Hero MotoCorp: 19%

JCB: 9%

Others: 42%

STRENGTHS

Established OEM Relationships: Long-term partnerships with leading automotive manufacturers

Diversified Product Portfolio: Wide range of components across multiple vehicle categories

Strong Financial Performance: Consistent revenue growth with improving profitability metrics

Global Manufacturing Footprint: 48 facilities across India and Europe, providing operational flexibility

EV Readiness: Strategic investments in electric vehicle components and technology

Technical Collaborations: Partnerships with Honda Lock (Japan) and JEM Co. Ltd (Korea) for technology transfer

Innovation Focus: 7 patents granted in FY23-24, continuous R&D investments

WEAKNESSES

Raw Material Cost Sensitivity: Margins susceptible to steel and commodity price fluctuations

Customer Concentration: Dependence on top 3 customers for ~58% of revenue

Moderate Debt Levels: Debt-to-equity ratio of 0.81 indicates moderate leverage

Cyclical Nature: Business tied to automotive industry cycles and economic conditions

OPPORTUNITIES

Electric Vehicle Growth: Massive opportunity in India's expanding EV market

Government Support: Beneficiary of "Make in India" and PLI schemes for auto components.

Export Expansion: Growing international presence with 14% export contribution

Capacity Utilisation: New plants operating at 50-60% utilisation with scope for improvement.

Technology Upgrades: Continuous innovation in safety systems and electronic components.

THREATS

Supply Chain Disruptions: Global supply chain volatility is affecting production

Intense Competition: Increasing competition from domestic and international players

Regulatory Changes: Changes in automotive safety norms and emission standards

Economic Slowdown: Potential impact on automotive demand during economic downturns

Technology Disruption: Rapid technological changes require continuous adaptation.

KEY FINANCIAL HIGHLIGHTS

Revenue CAGR (2020-2025): 15.9%

Net Profit CAGR (2020-2025): 19.9%

EPS CAGR (2020-2025): 19.8%

Latest Performance (TTM)

Revenue: 4,062 Cr

Net Profit: 141 Cr

Operating Profit: 380 Cr EPS: 23.36

Operating Cash Flow: 247 Cr

KEY RATIOS

SHAREHOLDING PATTERN

Promoters: 70.38%

Domestic Institutional Investors: 15.75%

Foreign Institutional Investors: 0.83%

Public & Others: 13.05%

OVERALL ASSESSMENT

Sandhar Technologies demonstrates strong fundamentals with consistent growth across key financial metrics. The company's strategic positioning in the automotive components sector, combined with its early investments in EV technology, positions it well for future growth. Strong OEM relationships and a diversified product portfolio provide stability, while expansion into electric vehicle components offers significant growth potential.

The company's financial performance shows healthy improvement with ROE increasing from 8.5% to 12.8% over five years, indicating efficient capital utilisation. Revenue growth of 15.9% CAGR demonstrates the company's ability to capitalise on India's automotive growth story.

TECHNICAL ANALYSIS

Chart Pattern Analysis

Long-term Trend: Strong upward trajectory with higher highs and higher lows. Current Price Action: Recent breakout above ₹500 level with strong momentum. Volume Analysis: Increasing volumes support price appreciation. Price trading above all major moving averages (20, 50, 200 DMA).

Momentum Indicators

RSI: 65-70 range (Bullish but approaching overbought)

MACD: Bullish crossover confirmed

Key Technical Levels

Immediate Support: 480-490

Strong Support: 450-460

Immediate Resistance: 530-540

Major Resistance: 600-620

Technical Outlook: Positive with potential for further upside

Investment Strategy

Entry Zone: 510-520 (on any dips)

Stop Loss: 480 (Technical support)

Target 1: 600 (Previous high)

Target 2: 650 (Extension target)

Investment Horizon: 6-12 months

Risk-Reward Ratio: 1:2.5

DISCLAIMER:

SEBI registration is not a guarantee of profit. Stock market investment/trading is subject to market risk. This report has been prepared by THE MONEY MINT, the marketing name of the RITU CHAUHAN SEBI (Research Analyst) (Registration No. INH000014456) and is solely for the information of the recipient only. The report must not be used as a singular basis for any investment decision. The views herein are general and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in securities of the companies referred to in this document and should consult their advisors to determine the merits and risks of such investment. The information and opinions contained herein have been compiled or arrived at, based upon information obtained in good faith from publicly available sources. Such information has not been independently verified and no guarantee, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change according to market scenarios. Descriptions of any company or companies or their securities mentioned herein are not intended to be complete. THE MONEY MINT or RITU CHAUHAN or associates are not obliged to update this report for such changes. THE MONEY MINT or RITU CHAUHAN or the associates are not responsible for profit or loss.

CONTACT: themudrakaars001@gmail.com

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