East India Securitie's report on Suprajit Engineering
Suprajit (SEL) reported a subdued performance, hit by Covid, with robust outlook as 1) OEMs ramp-up started in June and strengthened in July & August. 2) Sales reached near pre-Covid levels. 3) Aftermarket reported YoY growth. 4) Non-auto segment and exports are approaching last year's level. We expect growth to come back from the combination of robust recovery witnessed in OEM orders, aftermarket, and exports. The management is fully geared up to provide the required focus for its strategically important SENA strategy, while Phoenix Lamps incremental growth will majorly come from Osram’s orders and aftermarket. Stringent cost rationalisation measures and better mix to provide required support to the margins going forward.
Outlook
We believe SEL would maintain its dominant leadership and has enormous growth potential in all of its three segments in the domestic as well as exports. Recommend 'Accumulate.
For all recommendations report, click here
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