Sansera Engineering shares slump 7% after client recalls Rs 3,066-crore order

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Sansera engineering makes a wide range of precision forged and machined components such as connecting rod, rocker arm, crankshaft, gear shifter fork, stem comp, and aluminium forged parts

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Shares of auto parts maker Sansera Engineering plunged over 7 percent on July 27 after the company said one of its clients recalled Rs 3,066-crore order that was placed in April.

“Regarding business contract from a leading North American OEM for development, manufacturing and supply of connecting rods starting July 2025, we would like to inform you that basis recent review of business plan/strategy, our customer has decided to drop this project, consequent to which, the contract awarded to us by the aforesaid OEM stands withdrawn,” Sansera Engineering said in a regulatory filing on July 26.

Following the update, the stock slumped to Rs 715.75 as of 9.30 am, down 7.02 percent compared to last closing price.

In April, the original equipment manufacturer (OEM) had awarded a contract for development, manufacturing and supply of connecting rods. The start of production was supposed to begin from July 2025 and was expected to run over seven years. The approximate quantity for the contract was over 35 million connecting rods with an estimated revenue of over $ 400 million.

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Sansera engineering makes a wide range of precision forged and machined components such as connecting rod, rocker arm, crankshaft, gear shifter fork, stem comp, and aluminium forged parts for two-wheelers, passenger vehicles and commercial vehicle verticals.

The company debuted on the bourses last September. Since then, the stock has moved in a range and currently trades around the IPO issue price of Rs 744 per share.

In June, ICICI Direct had initiated coverage on the stock with a ‘buy’ rating banking on robust order wins which they said would lead to industry leading growth.

They set a target price of Rs 900 valuing the company at 20 times price-to-earnings on FY24 expected earnings per share (EPS) of Rs 45, building in 18 percent and 34 percent sales and earnings CAGR, respectively, over FY22-24.