ICICI Securities Picks Automobiles Dividend Stock To Buy For Likely Return Of 23%

ICICI Securities has picked Automobiles sector stock, Sansera Engineering Ltd to buy and assigned a target price of Rs 1033 apiece. The analyst has given buy call to Sansera Engineering stock in its report dated June 12, 2023 where the last trading price is quoted at Rs 840 apiece. If you buy Sansera Engineering share now at this price, you can obtain potential return of 23%. Board of directors on May 22, 2023 have recommended a dividend of Rs.2.50/- per equity share for the year 2022-23. Check details below:

Sansera Engineering Stock Performance: Last trading price of Sansera Engineering stock is Rs 850.55 per share with intraday surge of 1.19%. Its 52-week high price is Rs 867.55 per share and 52-week low price is Rs 642.40 per share, respectively. Its market capitalisation is Rs 4,501.92 crore. It gave return of 16% in last 3-months and 23% return in last 1-year.

Sansera Engineering Declared Dividend: According to the BSE filing of the company, "We would like to inform you that the Board of Directors of the Company at its meeting held today i.e., May 22, 2023 have recommended a dividend of Rs.2.50/- per equity share for the year 2022-23 on its fully paid-up Equity Share Capital of the Company, subject to approval of shareholders at the ensuing Annual General Meeting of the Company."

Valuation: According to ICICI Securities, "Maintain BUY on the stock keeping estimates unchanged and with a DCF-based target price of Rs1,033, implying 18x FY25E earnings. Change in price target is driven by rollover of earnings by a quarter."

Sansera Engineering About: Sansera was incorporated in 1981 in Bengaluru and commenced commercial production of passenger vehicle components in 1986. It grew its precision components manufacturing business organically in India by commencing supplies to the two-wheeler vertical in 1996, for off road vehicles in 2009, and to the light commercial vehicle vertical in 2011. It set up a manufacturing facility dedicated to high precision aluminium and titanium machined aerospace components in 2013. In April 2017, it acquired a 100% stake in Sansera Sweden, which has facilitated its entry into the heavy commercial vehicle vertical in the automotive sector, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.