Sandhar Technologies made its debut today on the National Stock Exchange (NSE) at Rs 346.10, trading at a premium of 4.25 per cent. The stock got listed at Rs 345 on the Bombay Stock Exchange (BSE). The company set the price band range at Rs327 to Rs332.
Sandhar Technologies is an auto component supplier for safety and security systems such as lock assemblies, mirror assemblies, among other things. Not only in India the company has also presence in the international market with 2 manufacturing facilities in Spain and 1 in Mexico. The company has 31 manufacturing facilities in India and 5 are in the process of getting commissioned.
The company came out with an initial public offering (IPO) of Rs 512-crore , which was open between March 19 and March 21, 2018. The issue got subscribed 6.2 times.
The main strength of the company is its diversified product portfolio comprising of 21 product categories. In terms of geogrphical presence, the company is quite diversified and has a relationship with 79 OEMs across India, eastern and western Europe and NAFTA regions. It also supplies products to global automotive component suppliers.
When comparied to its peers the company does not seem to be overvalued. According to a report by Angel Broking, “Sandhar is continuously diversifying its product portfolio and expanding its customer base by offering high value added products and focusing on exports. In terms of valuations, the pre-issue P/E works out to 25x 1HFY2018 annualized earnings (at the upper end of the issue price band), which is lower compared to its closest peer Minda Corporation (trading at 30x its 1HFY2018 annualized earnings). “