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Buy Suprajit Engineering; target of Rs 386: Sharekhan

Sharekhan is bullish on Suprajit Engineering has recommended buy rating on the stock with a target price of Rs 386 in its research report dated November 21, 2022.

November 22, 2022 / 11:48 AM IST
 
 
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Sharekhan's research report on Suprajit Engineering


Suprajit Engineering Ltd.’s (SEL’s) Q2FY23 results exceeded expectations, led by a sharp improvement in LDC biz’s operational performance. Revenue, EBITDA and PAT beat estimates by 4.7%, 27.8% and 30%, respectively. We maintain our positive view of the company and expect its LDC biz to be EBITDA positive from Q3 and margin normalisation in FY24E. Suprajit’s earnings to clock a 24.3% CAGR during FY2022-FY2024E, driven by a 27.2% revenue CAGR, partially offset by a 50bps decline in EBITDA margins. Stock trades at of P/E multiple of 17.2x and EV/EBITDA multiple of 11.6x its FY24E estimates.



Outlook


We reiterate a Buy on Suprajit Engineering Limited with an unchanged PT of Rs.386, factoring its robust value proposition to its domestic and global clients and comfortable valuations.


For all recommendations report, click here


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Suprajit Engineering - 22 -11-2022 - khan

Broker Research
first published: Nov 22, 2022 11:48 am