Shares of SJS Enterprises hit an all-time high of Rs 571.80, up 6% on the BSE in intraday trade on Monday on a strong business outlook. The stock has soared 19% over the past three sessions. Shares of the auto kit company surpassed the previous high of Rs 550 touched on September 5, 2022.

Today, the company’s market price broke the listing day high of Rs 551 for the first time. The company made its stock market debut on November 15, 2021. It hit an all-time low of Rs 340 in December 2021. Investor Ashish Kacholia holds 1.35 million shares or a 4.43% stake in SJS.

SJS is one of India’s leading players in the Decorative Aesthetics industry, with the broadest range of products spanning traditional and premium products.

The company operates in 11 product categories: decals, logos – domes and 3D lux, aluminium badges, 2D and 3D decals, chrome parts, overlays, in-moulding decoratives/labelling, optical plastics and lens hood assemblies. These products primarily serve the two-wheeler (2W), passenger vehicle (PV) and consumer durable (CD) industries, as well as commercial vehicles, medical equipment, farm equipment and sanitary ware.

In April 2023, SJS announced the acquisition of a 90.1% stake in Walter Pack India (WPI) for a consideration of Rs 239 crore. WPI, a subsidiary of Walter Pack Spain, is a leader in designing and developing high-value-added functional trim for the Indian market. WPI is one of the few companies in India proficient in advanced IMD, IMF, IML and IME technologies, providing SJS with a solid technical advantage.

After acquiring and expanding the Exotech business, SJS’ management believes that with the addition of WPI, SJS will witness multiple growth opportunities, a broader product portfolio base and increased cross-selling opportunities.

Looking ahead, SJS raised its FY24 guidance, projecting a 50% increase in revenue and a 40% increase in profit after tax (PAT). Organic and inorganic growth strategies drive this optimistic outlook.

Despite the challenging external environment in the near term, management remains firmly committed to achieving 20-25% CAGR organic revenue growth in FY23-26 while maintaining healthy EBITDA margins.

Nuvama Wealth and Investment has a “buy” call on the stock with a target price of Rs 594 per share.