Target: ₹2,350

CMP: ₹1,980.80

Sedemac Mechatronics is among the leading and few domestic players to have developed control-intensive, critical-to-the-application electronic control units (ECUs). Underpinned by the high-quality technical capabilities and strong engineering expertise of its founders, Sedemac has an established track record of delivering pioneering, first-to-market solutions that enable OEMs to offer a superior value proposition to end-users. Growing adoption of ISG in ICE 2Ws/3Ws and rising electrification.

ISG penetration in the domestic 2W segment stands at about 36 per cent. Given the end-customer benefits (smoother starts to 2Ws/3Ws and better fuel efficiency), we expect ISG penetration to deepen further (to about 50 per cent by FY30E). Sedemac’s unique sensorless commutation (SLC)-based ISG increases product reliability at lower costs by eliminating sensors, thereby expanding its use cases even to motorcycles (in addition to scooters).

in 2Ws/3Ws augurs well. Further, SEDEMAC’s proprietary sensorless commutation (SLC) technology provides it an edge over its peers and could aid its market share in both these segments. Expanding these SLC capabilities into large addressable areas could provide growth longevity. Initiating coverage on Sedemac with Buy and TP of ₹2,350.

Key risks: SLC-based MCU adoption key to diversification and growth longevity; high import dependence for key raw materials increases supply chain and currency related risks; high customer concentration.

Published on May 18, 2026