Suprajit Engineering
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Suprajit Engineering is navigating a pivotal transition in the automotive sector, focusing on diversifying its product offerings to include EV-agnostic and EV-specific components. Management's confidence stems from the successful integration of recent acquisitions and the robust performance of its Electronics Division, which is expected to drive double-digit revenue growth and improved EBITDA margins in FY27. However, the company faces significant risks, including potential disruptions from EV adoption impacting its traditional cable and bulb businesses, as well as geopolitical tensions affecting supply chains and commodity prices. Vista's financial outlook reflects these dynamics, projecting stable margins and a moderate revenue growth trajectory, supported by strategic capacity expansions and new product developments. The automotive ancillary sector's growth, driven by electric vehicle adoption and improving pricing power, aligns with Suprajit's strategic initiatives. Over the next 12-24 months, key opportunities include expanding market share in the EV segment and leveraging new contracts, while watchpoints include tariff uncertainties and geopolitical risks that could impact profitability
Why We Like This Stock
- Successful integration of acquisitions is enhancing operational efficiency and margin improvement
- Strong momentum in the Electronics Division is expected to drive double-digit revenue growth
- Strategic capacity expansions and new product developments are aligning with market demand for EV components
Things To Watch Out For
- Ongoing geopolitical tensions may disrupt supply chains and impact commodity prices
- Potential long-term disruption to core cable and bulb businesses from EV and LED adoption poses execution risks
- Uncertainties surrounding US tariffs could affect profitability and recovery of unrecovered costs
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,896 | 3,277 | 3,825 | 4,180 | 4,588 |
| Profit Before Tax (Cr.) | 188 | 168 | 298 | 296 | 333 |
| PBT Margin | 6.5% | 5.1% | 779.1% | 7.1% | 7.3% |
| Net Profit (Cr.) | 115 | 77 | 187 | 222 | 250 |
| Earnings Per Share | 8.4 | 5.6 | 13.6 | 16.2 | 18.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| JMFinancials | ▲ Buy | 565 | 27-May-2026 |
Company Overview
Show Company Profile
Suprajit Engineering Limited manufactures and sells automotive cables, halogen lamps, speedometers, and other automotive components in India, the United States, and internationally. The company provides control cables, halogen and LED bulbs, electro-mechanical actuators, TFT clusters, friction products, mechanical and hydraulic braking systems, combined braking systems, and throttle position sensors. Its products include gear boxes, linear actuation products, display clusters and telematics, gear shifter systems, lighting systems, and USB charging modules. The company was incorporated in 1985 and is based in Bengaluru, India.