Tesla is in talks with at least three Indian suppliers to source critical parts as part of its plans to enter the Indian market

Topics
Sandhar Technologies | Buzzing stocks | Tesla Inc

SI Reporter  |  Mumbai 

Shares of Sandhar Technologies rallied 13 per cent to Rs 294.30 on the BSE in intra-day trade on Monday on reports that US electric vehicle maker Tesla is in talks with at least three Indian suppliers to source critical parts as part of its plans to enter the Indian market.

The company is looking to source critical electronic, electrical and mechanical components, even as Sona BLW Precision Forgings (Sona Comstar), Sandhar Technologies and Bharat Forge are understood to be among the Indian firms already supplying components to it, the Economic Times reported.

The company is seeking critical electrical, electronic and mechanical components, the report said, citing people familiar with the matter. The parts include instrument panels, windshields, differential brakes, gears and power seats, the report said. READ MORE

Besides, Sandhar Technologies, the stock of Soma Comstar surged 8 per cent to Rs 512.50, while Bharat Forge rallied 7 per cent to Rs 775 on the BSE. In comparison, the S&P BSE Sensex was up 0.71 per cent at 56,524 points at 09:41 am.

Sandhar Technologies (STL) is a leading auto ancillary player primarily serving the Indian auto OEM industry through a host of product categories, such as locking systems, Al die-casting & cabins (together form 57 per cent of sales). The company outperformed domestic OEM industry courtesy its multi-segment, multi-product, multi-client exposure.

STL got listed on the bourses in March 2018. Over the past three years, the stock has not generated any meaningful returns for its shareholders. However, ICICI Securities believe STL offers a significant margin of safety at the current market price (CMP) with an attractive risk-reward at play.

The high double-digit sales, profit after tax growth lies ahead with lean balance sheet and robust capital efficiency. Expect sales to grow at 20 per cent CAGR over FY21-23E. The growth will be led by an increase in wallet share with existing clients, new client additions & order wins, infra-revival related growth in cabin space are among key triggers for future price performance, the brokerage said in a stock update.

Unaffected by the electric vehicle (EV) transition in the 2-W space, STL has already onboarded Ampere, Ather Energy, Revolt and Mahindra Electric among others in the e-mobility domain with talks progressively on with Ola- Electric as well, the brokerage firm noted.

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First Published: Mon, August 30 2021. 10:07 IST

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