Buy Suprajit Engineering; target of Rs 550: Emkay Global Financial

Emkay Global Financial is bullish on Suprajit Engineering has recommended buy rating on the stock with a target price of Rs 550 in its research report dated August 17, 2025.

Broker Research

August 20, 2025 / 16:35 IST

BUY

26 Aug, 2025 12:21

Volume

Todays L/H

Emkay Global Financial's research report on Suprajit Engineering

SEL’s consolidated revenue rose 17% YoY, led by SCD/DCD (up 6/7.7% YoY).EBITDA fell 5.3% YoY (on higher employee costs due to ongoing restructuring at SCS); SCD (global business) continues to clock double-digit EBITDAM (11.8% in Q1 vs 10.8/11.8% in Q4/Q3FY25); the management is hopeful of achieving double-digit revenue growth at SCD by end-FY26, as SEL continues to outpace the underlying global industry on new order wins. The mgmt has given guidance
for SCS turning EBITDA-positive (vs EBITDA-neutral earlier) led by ongoing strategic turnaround (Poland plant closure, headcount reduction at Germany; warehouse relocation to Hungary; operational improvement at Morocco). 70% of supplies to US being USMCA-compliant, coupled with its off-shoring/near shoring/on-shoring, place SEL well to capture global opportunities. Notably, consol PBT was higher than standalone PBT in Q1, amid continued turnaround in global operations. We highlight that against the current valuation (~Rs61bn market capitalization), 21x PER for SA/India business provides healthy upside/downside protection, even as the global business (52% of revenue) is available virtually for free despite strategic groundwork over the past 5Y (refer to our note:

Outlook

We trim FY26E/27E EPS by 3.6/3% due to uncertainty in global demand. We maintain BUY on the stock with SoTP-based TP of Rs550.

For all recommendations report, click here