SJS Enterprises pivots to displays with Q1 ROCE at 37%

SJS Enterprises Limited (

) is expanding into automotive displays while delivering a Q1FY27 return on capital employed (ROCE) of 37%. Revenue for the quarter rose 24% YoY to Rs 261 crore with EBITDA margins touching 30%. The company is investing Rs 65 crore to build a display assembly business with 200,000 units initial capacity, targeted for Q2FY28. Headline growth looks solid, but the key driver is kit value expansion. Adding display assemblies can scale kit value from Rs 4,000–5,000 to Rs 11,000–12,000 per vehicle, making future revenues less dependent on overall vehicle volume growth. Margins remain protected as the chrome-plating unit margin improved from 12% to 20%, while cash flow conversion stands strong at 103% of EBITDA. Higher-margin exports currently make up 10% of sales, with management aiming for 14–15% by FY28 via a new European sales agency. At ~28x FY28e EPS, valuation trades near its historical average. While execution across new capacities remains critical, high cash generation funds expansion without straining the balance sheet. Watch for commercial display adoption by OEMs and export traction in Europe. View: Overweight. Disclosure: This post is for informational and educational purposes only and should not be construed as investment advice. Readers must consult a SEBI-registered financial advisor before making any investment decisions.