Motilal Oswal is bullish on Suprajit Eng has recommended buy rating on the stock with a target price of Rs 190 in its research report dated Februrary 10, 2016.
Motilal Oswal's research report on Suprajit Eng
Suprajit's 3Q is not comparable as Phoenix has been consolidated this quarter while we do not have comparable numbers from the prior period. Standalone revenues have risen 13%, EBITDA is up 24% while profits are up 27%. Consolidated results have recieved a boost from Phoenix acquisition with 60% revenue growth and 88% profit growth. Gross margin expansion aided 60bps rise in EBITDA margins, while standalone margins have risen 170bps. Acquisition cost of INR1cr is factored into 3Q earnings, while INR7cr of gains on MF sales are also factored in. Numbers are higher than our estimates and we have raised FY16 earnings by 10%.
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