Fundamental Analysis

SUPRAJIT ENGINEERING LTD.

Ticker : 532509
BUY : Rs340.25
Target : Rs 380

Suprajit Engineering has achieved phenomenal growth and cemented itself as India’s largest manufacturer of automotive cables. On the consolidated quarterly front, the company recorded a healthy increase in net sales and operating income, which stood at Rs 361.62 crore for Q1FY22 as compared to the net sales & operating income of Rs 177.47 crore reported for Q1FY21, clocking gains beyond 100 per cent. The operat-ing profit stood at Rs 55.83 crore in Q1FY22, gaining heavily from Rs 0.95 crore posted in Q1FY21. The company's net profit was recorded at Rs 43.16 crore in Q1FY22 as against the net loss of Rs 14.51 crore recorded in Q1FY21. In the recent quarter, the company registered six acquisitions, four in cable space and two in halogen bulbs space. The company bears a proven track record of integration and strong potential organic growth; hence, we recommend BUY.