Sansera Engineering share price hits 52-week high amid block deal buzz; ‘deploy buy on dips’, says analyst

Sansera Engineering share price surged over 7% to touche a 52-week high on Wednesday's session following press reports that 62.53 lakh shares, or 11.6% of the company's total stock, changed hands in numerous significant transactions today. Sansera Engineering share price today opened at ₹1,267.05 apiece on the BSE, the stock touched an intraday high of ₹1,317, and an intraday low of ₹1264.80.

“Recently, the Sansera Eng share price had given a breakout from a consolidation phase, and the follow-up move post that has been strong with high volumes. Thus, the overall trend remains positive, and one should keep a buy-on-dip approach. The immediate supports are placed around ₹1,200, followed by 20 DEMA at ₹1,120,” advised Ruchit Jain, Lead Research Analyst of 5paisa.

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According to a CNBC-TV18 news report, the overall value of the deal is ₹750 crore, based on available data. Buyers and sellers in the deal are still unclear. 

On Tuesday, CNBC-TV18 reported that Client Ebene and CVCIGP II Employee Ebene are expected to sell up to 6.25 million shares in the car component producer through these transactions.

 CNBC-TV18 cited sources stating that the transaction comprised up to 5.03 million shares (9.38% equity) from Client Ebene and up to 1.22 million shares (2.28% equity) from CVCIGP II Employee Ebene. According to the news report, the shares were being auctioned at a price ranging from ₹1,151.2 to ₹1,211.75 each.

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According to ICICI Direct Research, the PE fund's interest in Sansera Engineering was around 29% at the time of listing. They sold approximately 16% of their share last fiscal year and want to sell the remaining 11.7% today.

"This will give the PE fund a full exit of their holdings in Sansera and removed the selling overhand on the stock. Given the healthy order wins and intent to diversify its revenue base with target to grow at 20% sales CAGR with 20% margins and similar return ratios we have a positive view on the company," the brokerage house said.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.