Sell Suprajit Engineering; target of Rs 400: Emkay Global Financial

Emkay Global Financial is bearish on Suprajit Engineering has recommended sell rating on the stock with a target price of Rs 400 in its research report dated November 12, 2024.

Broker Research

November 22, 2024 / 12:34 IST

sell

26 Aug, 2025 12:21

Volume

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Emkay Global Financial's research report on Suprajit Engineering

SEL posted a ~4% miss on Consensus EBITDA estimate (excluding SCS); SCS reported a ~Rs101mn EBITDA loss. Management pointed to weak global demand across geographies (though it expects to outperform global auto growth by 5-10%; previously expected to return to double-digit growth in global business by year-end); India industry growth also seen in single digit (vs double digit as of Sep). While we expect SEL to gain from: i) Industry consolidation due to SCS acquisition and global pain in Autos, and ii) improved content per vehicle, the emerging growth (and consequent margin) challenges (largely global) prompt a sharp ~18%/23%/27% cut in FY25E/26E/27E EPS along with reduced TP multiple of 18x vs 25x earlier.

Outlook

We downgrade Suprajit Engineering (SEL) to SELL from Buy with revised TP of Rs 400 at 18x Sep-26E PER.

For all recommendations report, click here