01 — At a Glance
The Component King Everyone Forgot About
- 52-Week High / Low₹601 / ₹342
- Q3 FY26 Revenue₹1,185 Cr
- Q3 FY26 PAT₹34.9 Cr
- EPS (Q3)₹5.56
- Annualised EPS (Q3 Avg)₹22.24
- Book Value / Share₹204
- Price to Book2.34x
- Revenue Growth (YoY)+21.7%
- Profit Growth (YoY)+16.6%
- Operating Margin9.05%
Flash Summary: Sandhar just reported Q3 revenue of ₹1,185 crore, up 21.7% YoY. PAT came in at ₹34.9 crore, growing 16.6% YoY. The stock is at ₹477, returned -14.7% in 3 months, yet trades at a reasonable 16.2x P/E. The company is in the middle of integrating the Sundaram Clayton acquisition (₹163 crore deal), firing up new facilities in Pune and Chennai, and trying to stop the hemorrhaging in Europe. Management says the turnaround from overseas and new projects is coming “from April 2026.” Let’s see if that actually happens.
02 — Introduction
The Auto-Ancillary That Supplies Everyone Except Itself
You know Sandhar Technologies because you’ve been inside the car or bike it supplies components for. The thing is, you’ll never actually see the Sandhar logo on anything. That’s the entire business model of auto-ancillaries — build the invisible bits that nobody cares about until they break.
Sandhar makes locking systems (door locks, boot locks, fuel door locks), aluminum die casting components, vision systems (mirrors and camera modules), cabin fabrication, sheet metal parts, and assemblies. They supply to everyone from Hero MotoCorp (nearly a quarter of their revenue) and TVS, to TATA, Mahindra, JCB, and even Caterpillar. In the two-wheeler space, they own nearly 67% of their revenue base. If India has made a crore two-wheelers in the last decade, Sandhar’s locks probably opened and closed a lot of them.
The company has 25 manufacturing plants across India, strategically clustered near automotive hubs in Haryana (6 units), Karnataka (5), Tamil Nadu (5), Maharashtra (4), and scattered across other states. They also have overseas subsidiaries in Romania, Spain, Poland, and Mexico. Promoter Jayant Davar holds 50.56% of the company as of December 2025. He’s been running this thing for 35 years, and if the family business was an IPL team, it would’ve won at least one championship by now.
From the Feb 2026 Concall: Management says India operations delivered 24% revenue growth and 21.1% ROCE in existing business. New projects (Pune facility, Chennai facility, Sundaram acquisition) will “turn around starting April 2026.” Overseas is expected to move from ₹25.81 crore losses (9M) to breakeven by FY27. Translation: a lot of moving parts, and execution risk is absolutely real.
03 — Business Model: Bolts, Locks, and More Bolts
They Make 99 Paise Per Rupee. The Profit is in the Other One Paise.
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