Axis Direct is bullish on Suprajit Engineering has recommended buy rating on the stock with a target price of Rs 238 in its research report dated March 16, 2017.
Axis Direct's research report on Suprajit Engineering
Suprajit Engineering had an eventful last 2 years wherein it completed acquisitions of Phoenix Lamps & Wescon, USA. The standalone cable operations saw further market share gains as it increased penetration in relatively-untapped OEMs (HMSI in 2W and Maruti in 4W).
Suprajit has consistently outperformed auto ancillary pack on revenue/ EBITDA CAGR over the past decade while maintaining RoCE at 30%. With current utilization levels below 65% across product lines, the company is well-placed to capitalize on growth opportunities over the next 2-3 years. We reiterate BUY with TP of Rs 238 (20x FY18E EPS).
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