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Last Updated : Dec 21, 2018 04:19 PM IST | Source: Moneycontrol.com

Buy Suprajit Engineering; target of Rs 280: Nalanda Securities

Nalanda Securities is bullish on Suprajit Engineering has recommended buy rating on the stock with a target price of Rs 280 in its research report dated December 20, 2018.

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Nalanda Securities' research report on Suprajit Engineering


Suprajit Engineering, headquartered in Bangalore was established in the year 1985 is one of the global leader in manufacturing of two - wheeler automotive cables. It manufactures cables across all the segments of automotive industry and gradually gaining market share. We initiate a coverage on Suprajit Engineering Ltd (SEL) recommend a ‘Strong Buy’ with a fair value of INR 280, implying a 22 . 9 % upside potential from the current levels. Our view stems on the fact that a) SEL is quick in acquiring OEMs in low penetrated 4 Ws segment. b ) Increasing touch base in the gigantic aftermarket . c ) Expanding into newer segments in non - automotive cables . d ) Strategically looking for acquisitions into LEDs & other segments . e) Growing in extensive export market.


Outlook


We recommend a Strong Buy on Suprajit Engineering with a average fair value of INR 280 per share, valuing the company with P/E and EV/EBITDA Methodology. In the past three years, it use to trade at a forward P/E of ~ 20 x and EV/EBITDA of ~ 11. 5 x . We have assigned similar multiples on account of huge potential and growth opportunities.


For all recommendations report, click here


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First Published on Dec 21, 2018 04:19 pm
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