San Engineering Unlisted Shares
Buy - ₹415.00
Sell - ₹N/A
About San Engineering Unlisted Shares
1. About San Engineering
Founded in 1969, San Engineering and Locomotive Company Limited (San Engineering) has evolved from a locomotive manufacturer into a leading multi-product enterprise. Over the years, the company has built a strong reputation in various industry segments, providing innovative solutions and maintaining a customer-centric approach. Specializing in the design and manufacturing of locomotives, power packs, gearboxes, and other heavy machinery components, San Engineering has consistently demonstrated its engineering excellence.
The company’s journey is marked by strategic partnerships, a focus on research and development (R&D), and a commitment to delivering high-quality products. With its emphasis on innovation and technology, San Engineering has secured its place in both domestic and international markets, producing solutions that cater to diverse industries.
2. Business Divisions
San Engineering operates in multiple sectors, producing a wide range of products designed to meet the needs of several industrial applications. The key business divisions are:
- Locomotives:
San Engineering manufactures diesel-hydraulic and diesel-electric locomotives, which are used in various industries, including transportation and mining. These locomotives are known for their durability, reliability, and performance. - Power Packs:
The company designs and manufactures power packs tailored for diverse industrial applications. These power packs are essential in powering heavy machinery and equipment across different sectors. - Gearboxes:
San Engineering produces high-performance gearboxes that are used in a range of industries, including manufacturing, automotive, and power generation. The company’s gearboxes are designed to deliver enhanced efficiency and longevity. - Turbo-Reversing Transmissions:
These advanced transmission systems are critical for industries that require high torque and precise control. San Engineering’s turbo-reversing transmissions are designed to offer reliable performance in demanding applications. - Heavy-Duty Cardan Shafts:
San Engineering manufactures cardan shafts, known for their robustness and reliability. These components are crucial in the transmission of power for heavy machinery and industrial equipment.
3. Financial Highlights
San Engineering’s financial performance over the past few years has been impressive, reflecting strong revenue growth, efficient cost management, and a robust profit margin. Below are some key financial highlights:
- Revenue Growth:
San Engineering’s revenue increased significantly from ₹137 crore in 2022 to ₹226 crore in 2024, showcasing a strong year-over-year growth of 64.96%. This growth is attributed to increased demand across its key product segments and the company’s ability to diversify its offerings. - Consistent Gross Margins:
The company has maintained healthy gross margins, with a slight increase from 46.72% in 2022 to 49.56% in 2024. This indicates that San Engineering has been successful in controlling production costs while increasing the value of its products. - Improvement in Profitability:
San Engineering has experienced an impressive rise in profit after tax (PAT), from ₹8 crore in 2022 to ₹28 crore in 2024, marking a substantial increase in Net Profit Margins (NPM) from 5.84% to 12.39%. This indicates better operational efficiency and higher demand for its products. - Strong EBITDA Growth:
The company’s EBITDA increased from ₹17 crore in 2022 to ₹40 crore in 2024, reflecting a growth of 135%. With an EBITDA margin of 17.7% in FY2024, San Engineering has shown strong operational profitability. - Solid Earnings Per Share (EPS):
San Engineering has achieved a remarkable EPS of ₹62.92 in FY2024, up from ₹17.98 in FY2022. This demonstrates the company’s ability to generate substantial earnings relative to its share capital, enhancing its attractiveness as an investment.
Pros
- Advanced manufacturing facilities ensure high precision.
- Strong R&D focus drives continuous innovation.
- Diverse product portfolio serves multiple industries.
Cons
- Heavy reliance on railways and heavy machinery industries.
- High capital investment pressures cash flow.
- Limited global market presence restricts growth.
