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Shares Of This Mid Cap Auto Ancillaries Stock Can Surge 36% In 12 Months, Buy: Emkay Global
Leading brokerage firm Emkay Global has recommended investors to buy Suprajit Engineering Ltd with a target price of Rs 450. The current market price of Suprajit Engineering is Rs 332 apiece. Buy Suprajit Engineering shares today to receive potential return of 36%. The analyst has given a target time of 12 months when the shares will reach the specified target price. Check key takeaways below:
1. Suprajit Engineering Ltd Stock Outlook
The current market price of the stock is Rs 332 apiece. The stock's 52-week high is Rs 478 apiece and 52-week low is Rs 272 apiece, respectively. The company has a market capitalisation of Rs 4599 crore.
2. Suprajit Engineering Ltd Q2 EBITDA Above Estimates
Revenue grew by 45% YoY (3-yr CAGR at 22%) to Rs7.2bn (est.: Rs7bn), driven by 10% growth in auto cables, 25% growth in non-auto cables, and addition of LDC revenue (Rs1.7bn). In comparison, lamps revenue declined by 2%. EBITDA declined by 2% (3-yr CAGR at 12%) to Rs787mn (est.: Rs738mn), above our estimate due to better profitability across segments.
3. Suprajit Engineering Valuation
According to Emkay Global, "We maintain a constructive view, driven by: 1) cyclical recovery in the underlying industry; 2) market-share gains vs. the industry, thanks to decentralized plant locations and competitive pricing owing to scale advantages; and 3) growth in content per vehicle (CPV), led by new products (~Rs50,000/unit opportunity). We reaffirm our BUY rating on the stock with a TP of Rs450 (Rs440 earlier), based on 20x Dec-24E EPS (Sep-24E earlier). Key risks: Slower acceptance of new products and adverse movement in currency/commodity prices."
4. Suprajit Engineering About
Incorporated as a Private Limited Company in 1985, Suprajit Engineering Limited started manufacturing high quality liner cables to exacting Japanese standards for the automotive industry in 1987.
Currently catering to a wide spectrum of automotive and non-automotive cable requirements, Suprajit Engineering has achieved phenomenal growth and has cemented itself as India's largest manufacturer of automotive cables. Suprajit is now listed in the Indian bourses and is amongst the top five cable manufacturers in the world, according to its official website.
Disclaimer
The stock has been picked from the brokerage report of Emkay Global. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.
