Suprajit Engineering
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Suprajit Engineering is poised for a period of growth driven by strategic management initiatives and a favorable industry backdrop. Management has articulated a confident outlook, emphasizing the successful restructuring of its Global Cables and Mechatronics division, which is now yielding margin improvements. The company's pivot towards becoming a technology-driven system provider, particularly in high-value segments like advanced braking and mechatronics, aligns well with Vista's forecast of stable revenue growth and improving margins. The ongoing expansion of the Electronics Division, coupled with new product launches, is expected to enhance revenue streams significantly. However, external risks such as geopolitical tensions and rising raw material costs remain pertinent. The auto ancillaries sector is experiencing a sunrise phase, with increasing EV adoption and supportive government policies, which further bolster Suprajit's growth prospects. Over the next 12-24 months, key opportunities include scaling the 'Beyond Cables' initiative and leveraging R&D capabilities, while watchpoints include managing wage inflation and navigating tariff uncertainties. Vista's expected upside of approximately 33.5% reflects confidence in these developments, with a 12-month target price of INR 673.15
Why We Like This Stock
- Successful restructuring of the Global Cables and Mechatronics division is driving margin improvements
- Expansion of the Electronics Division and new product launches are expected to enhance revenue streams
- The shift towards technology-driven solutions aligns with industry trends and supports long-term growth
Things To Watch Out For
- Geopolitical tensions and rising raw material costs pose risks to profitability
- Ongoing tariff uncertainties may impact margins and operational efficiency
- Potential slackness in the Indian aftermarket could dampen domestic growth in the short term
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,896 | 3,277 | 3,825 | 4,178 | 4,580 |
| Profit Before Tax (Cr.) | 188 | 168 | 298 | 295 | 331 |
| PBT Margin | 6.5% | 5.1% | 7.8% | 7.0% | 7.2% |
| Net Profit (Cr.) | 115 | 77 | 187 | 221 | 249 |
| Earnings Per Share | 8.4 | 5.6 | 13.6 | 16.1 | 18.1 |
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's product, include braking system, control cables, display cluster and telematics, friction products, gear box, gear shifter systems, lighting systems, linear actuation, throttle controls, and USB charging modules. Its products are used in farm/garden equipment, LCV/HCV, metro and industrial application, passenger vehicle, power sports, three wheelers, and two wheelers. The company was incorporated in 1985 and is based in Bengaluru, India.