Sharekhan's research report on Suprajit Engineering
Suprajit Engineering Ltd. (SEL) has evolved as a well-diversified and de-risked company through a continuous focus on improving technology, widening its product portfolio, enhancing content per vehicle, increasing geographical penetration and building multiple brands. Expect its LDC biz to be EBITDA positive from Q3 and margin normalisation in FY24E. As a result, SEL’s earnings to clock a 24.3% CAGR during FY2022-FY2024E. Stock trades at comfortable valuations at P/E multiple of 14.9x and EV/EBITDA multiple of 9.8x its FY25E estimates.
We reiterate a Buy on the company with a revised PT of Rs.403, factoring its robust value proposition to its domestic and global clients and comfortable valuations.
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