SJS Enterprises promoters likely sell 31% stake in firm; stock rises 3%

Shares of SJS Enterprises reversed losses and shot up 3% to the day's high of Rs 639.40 in Tuesday's trade after opening over 4% lower on NSE following media reports that suggested likely block deals, involving 31% equity changing hands. The promoter group Evergraph Holdings Pte. Ltd. and Sanders Consulting are reported to have sold their stakes in the company.

Evergraph Holdings held 34.15% stake in the company as of the quarter ended June 30 while Sanders equity in the company stood at 1.11%. The news was reported by CNBC-TV18.

The block deal comes after ace investor Ashish Kacholia sold part of his stake in the aesthetic solutions provider for Rs 11.6 crore through the open market on Friday. Kacholia offloaded 1.8 lakh shares of SJS Enterprises for Rs 640 apiece in a bulk deal following which the stock had fallen over 3% on Monday.

SJS is a player in the Indian decorative aesthetics industry with a diverse product portfolio for a wide range of customers primarily in the automotive and consumer appliance industries. Its product offerings include decals and body graphics, 2D appliques and dials, 3D appliques and dials, 3D lux badges), domes, overlays among other things.

In Q1 FY24, the firm reported a nearly 7% year-on-year (YoY) increase in profit to Rs 16 crore. Meanwhile, its revenue climbed 12% YoY to Rs 83 crore in the same period.

As per Trendlyne data, the target price of the stock is Rs 729, an upside potential of 18% from the current market prices. The consensus recommendation from three analysts for the stock is a 'Strong Buy'.

Technically, the stock's day RSI (14) is at 49.5. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. MACD is at 17.9, above its Center line, but below the signal line. SJS Enterprises shares are trading higher than the 50-day, 100-day, 150-day, and 200-day moving averages but lower than the 5-day, 10-day, 20-day, and 30-day moving averages.

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