Goldman Sachs initiates coverage on Sansera Engineering, 3 other auto ancillary stocks with upside of up to 28%. Here’s why

Goldman Sachs initiated coverage on four auto ancillary stocks, assigning Buy ratings to Sansera Engineering (target Rs 4,130, about 28% upside) and Craftsman Automation (target Rs 11,600, 27.4% upside), and Neutral on Bharat Forge (target Rs 2,120) and Samvardhana Motherson (target Rs 148). The brokerage expects the Indian auto parts industry to post revenue growth of 7% in FY27E, 12% in FY28E, and 10% in FY29E, with EBITDA growth of 7%, 26%, and 14% respectively. Key growth drivers cited include product mix shifts toward aerospace, defence, semiconductors, and EV-related aluminium content, while Bharat Forge defence revenue is expected to triple and contribute 22% of consolidated revenue.