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Suprajit Engineering Ltd Stock Analysis

Small Cap
Evaluated by 2537 users | BSE: 532509 | NSE: SUPRAJIT |
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Suprajit Engineering Ltd (SEL) was incorporated on May 24, 1985 as a private limited company and was converted into public limited company on June 15, 1995. Suprajit started manufacturing high quality liner cables exacting Japanese standards for the...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Suprajit Engineering Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 25.37%24.37%20.51%18.28%15.13%13.98%15.35%15.7%12.19%10.31%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3474244635456129531,2031,4311,5901,563
Y-o-Y Gr. Rt.-22.2%9.2%17.9%12.2%55.7%26.3%19%11.1%-1.7%
Adjusted EPS (Rs.) 2.683.213.534.054.035.187.819.328.097.6
Y-o-Y Gr. Rt.-19.8%10%14.7%-0.5%28.5%50.8%19.3%-13.2%-6.1%
Book Value per Share (Rs.) 8.0810.7613.8917.0620.0634.0837.4846.8255.0560.67
Adjusted Net Profit 32.238.542.448.648.368109130113106
Net Op. Cash Flow (Rs. Cr.) 36.626.345.737.567.292.8126217145232
Debt to Cash Flow from Ops 1.83.152.454.162.883.2131.592.51.64
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Suprajit Engineering Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 18.2%20.6%9.1%-1.7%
Adjusted EPS 12.3%13.5%-0.9%-6.1%
Book Value per Share 25.124.817.410.2
Share Price 33.3% 15.2% -0.1% 118.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 38.4834.0828.6626.1721.6919.7522.4822.115.8213.06
Operating Profit Margin (%) 16.5616.3416.9617.0815.7616.3416.9416.5714.6514
Net Profit Margin (%) 9.449.099.178.927.98.029.089.117.116.8
Debt to Equity 0.680.640.670.760.80.670.720.530.470.45
Working Capital Days 101106111117122118137141142147
Cash Conversion Cycle 53495361686679777777
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 44.57%
Institutions 16.22%
Non-Institutions 39.21%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Suprajit Engineering Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Suprajit Engineering Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Suprajit Engineering Ltd's performance infers:

Suprajit Engineering Ltd earnings have grown by 13.5%, whereas share price has appreciated 15.2% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Suprajit Engineering Ltd share prices over the last 10 years. Here is what we found out:

Suprajit Engineering Ltd share price has appreciated 28.7% annually over the past ten years.

Suprajit Engineering Ltd (SEL) was incorporated on May 24, 1985 as a private limited company and was converted into public limited company on June 15, 1995. Suprajit started manufacturing high quality liner cables exacting Japanese standards for the automotive industry in 1987. It is today India’s most preferred manufacturer of cables and instruments and meets the demand of virtually every major OEM in the automotive sector. It is a customer centric

Suprajit Engineering Ltd (SEL) was incorporated on May 24, 1985 as a private limited company and was converted into public limited company on June 15, 1995. Suprajit started manufacturing high quality liner cables exacting Japanese standards for the automotive industry in 1987. It is today India’s most preferred manufacturer of cables and instruments and meets the demand of virtually every major OEM in the automotive sector. It is a customer centric company, ready to take on challenging product development and manufacturing to international specifications for a wide range of automotive cables and instruments. Today catering to a wide spectrum of automotive and non-automotive cable requirements Suprajit has achieved a phenomenal growth, making it India's largest manufacturer of automotive cables.

It has one of the largest manufacturing capacities for any one company in a specific country in the world. Suprajit is committed to being a world class organization, supplying cables and components to overseas and domestic customers in automobile and non-automobile sectors. With ISO/TS 169 49 2002 certifications, Suprajit practices a philosophy of continuous improvement and adopts processes that ensures fool proof & defect free manufacturing. Suprajit also seamlessly and efficiently satisfies its customer needs by optimizing production cycles. In 2011 - Gills Cables Limited was renamed as Suprajit Europe Ltd.

Business area of the company

The Company is engaged in the business of manufacturing and selling of automotive and other components and that are considered as single segment.

Products

  • Motion Control Solutions
  • Control Cable Systems
  • Push-Pull Assemblies
  • Brake Cable and Lever Systems
  • Rotary Push-Pull Lever Control Systems
  • Gear Shifter Mechanism and Cable
  • Joysticks & Remote Valve Control Systems
  • Commercial Controls

Awards

2017-18

  • Volkswagen - ‘A’ Grade Supplier Award, Quality Performance Award.
  • Honda Motor Cycles and Scooters – Quality and Delivery Achievement Award.
  • General Motors - Supplier Quality Excellence Award (3 years in a row).
  • John Deere - Accelerated Global Sourcing Award.
  • Brose Key Supplier Award.
  • Bajaj Auto Limited - TPM Excellence Award.
  • Tata Motors - Green Card for ‘0’ PPM.
  • Hero MotoCorp Limited - Direct Online Supply (DOL) Award.
  • Bajaj Auto Limited - Quality Consistency Gold Award.
  • Yamaha - Cost Reduction & VA/VE activity award.
  • TVS, Bajaj and Mahindra - various Awards.
  • KSFC: Entrepreneur of the year for the promoter.
  • CNBC/ICICI/CRISIL: SME of the year Auto Ancillary of the year.
  • NASSCOM: Best IT user Award in Automotive Sector.
  • KSFC: Outstanding Enterprise of the State.
  • BMA - Entrepreneur of the year.

2018-19

  • Volkswagen - Grade Supplier Award, Quality Performance Award
  • Honda Motor Cycles and Scooters -Quality and Delivery Achievement Award
  • General Motors - Supplier Quality Excellence Award (3 years in a row)
  • John Deere - Accelerated Global Sourcing Award
  • Brose Key Supplier Award
  • Bajaj Auto Limited - TPM Excellence Award Tata Motors - Green Card for '0' PPM
  • Hero MotoCorp Limited -Direct Online Supply (DOL) Award
  • Bajaj Auto Limited - Quality Consistency Gold Award
  • Yamaha - Cost Reduction & VA/VE Activity Award A grade excellence Award
  • TVS. Bajaj and Mahindra - various Awards
  • Best Delivery and Quality Supplier of the Year - AISIN Group

2019-20

  • Volkswagen -'A' Grade Supplier Award, Quality Performance Award
  • Honda Motor Cycles and Scooters - Quality and Delivery Achievement Award
  • General Motors -Supplier Quality Excellence Award (3 years in a row)
  • John Deere - Accelerated Global Sourcing Award
  • Brose Key Supplier Award
  • Bajaj Auto Limited - TPM Excellence Award
  • Tata Motors -Green Card for '0' PPM
  • Hero MotoCorp Limited -Direct Online Supply (DOL) Award
  • Bajaj Auto Limited -Quality Consistency Gold Award
  • Yamaha - Cost Reduction & VA/VE activity award
  • A grade excellence Award
  • TVS, Bajaj and Mahindra -various Awards

Milestones

1985:

  • Commencement of operations

1985-95:

  • Two new cable plants in Bangalore

1996-2005:

  • Listing of shares on BSE and NSE
  • India’s largest cable maker
  • Acquisition of Shah Concabs -4W cable competitor
  • Plants in Bangalore, Manesar and Chakan
  • Enterprise by State award by KSFC

2006-2010:

  • New plants in Pantnagar, Haridwar and Manesar
  • 100% EOU for non-automotive cables in Bangalore
  • Acquisition of CTP Gills Cables, one of the oldest cable companies with marquee global customers - now renamed as Suprajit Europe.

2011-2020:

  • Consolidating position as established global mechanical cable maker; diversifying and de-risking revenue profile
  • New plant at SAL, Banglore and Pathredi.
  • Acquisition of Speedo cable business (4W business) of Pricol
  • Acquisition of Wescon Controls, Wichita, USA
  • Launched two new plants in Chennai and Sanand
  • Launched Capex of Rs 100 crore to expand cable capacity to 300 million with 2 new plants
  • Acquisition of Osram Kamai Plant (Halogen Bulbs division)
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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