Shares of auto parts maker Sansera Engineering plunged more than 7% on July 27 after the company said one of its customers had recalled an order of Rs 3,066 crore placed in April.

“Regarding a contract for the development, manufacture and supply of connecting rods with a leading North American OEM from July 2025, we would like to inform you that, based on a recent review of the business plan/strategy, our customer has entered into a contract with Sansera Engineering in a July 26 regulatory filing.

After the update, the stock fell to Rs 715.75 as of 9.30 am, down 7.02% from its last close.

In April, an original equipment manufacturer (OEM) was awarded a contract to develop, manufacture and supply connecting rods. Production began in July 2025 and is expected to last seven years. The contract has an approximate volume of over 35 million connecting rods and is expected to generate more than $400 million in revenue.

Sansera Engineering vertically produces a variety of precision forged and machined components such as connecting rods, rocker arms, crankshafts, shift forks, rod assemblies and aluminium forgings for two-wheelers, passenger cars and commercial vehicles.

The company made its debut in the capital market last September. Since then, the stock has moved in a range and is currently trading close to its IPO issue price of Rs 744 per share.

In June, ICICI Direct initiated coverage of the stock with a ‘buy’ rating banking on strong order wins which it says will be industry-leading growth.

They target the company at Rs 900 at 20 times expected earnings per share (EPS) of Rs 45 in FY24, compared to sales and earnings CAGR of 18% and 34% in financial years 2022 and 2024, respectively.