Suprajit Engineering Ltd

About

Suprajit Engineering promoted by Mr Ajith Kumar Rai, started as a single-product (cables) to TVS Motor in 1985. Over the years, Suprajit has emerged as the largest supplier (market share of ~65%) of mechanical cables to the domestic 2W and passenger vehicle (PV) market with rising revenue share from aftermarket and exports. [1]

Key Points

De-risking and growth
The company has de-risked and grown from a single customer (TVS), segment (2W), location (Karnataka) to multiple segments, customers and locations [1].

Some of these were made through these acquisitions:
1. Shah Concabs acquired in FY03 was to diversify into commercial vehicle cable business.
2. CTP Gills (later renamed Suprajit Europe Limited) in 2007 was to get a foothold in export markets.
3. Pricol’s Speedo business in 2015 was to strengthen Suprajit’s presence in the passenger vehicle space.

See full details
  • Market Cap 5,262 Cr.
  • Current Price 380
  • High / Low 399 / 175
  • Stock P/E 28.0
  • Book Value 71.5
  • Dividend Yield 0.46 %
  • ROCE 16.6 %
  • ROE 15.5 %
  • Face Value 1.00

Pros

  • Company is expected to give good quarter
  • Company has been maintaining a healthy dividend payout of 18.97%

Cons

  • The company has delivered a poor sales growth of 11.79% over past five years.
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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
391 406 431 363 398 412 389 177 443 507 513 362
338 345 368 312 342 362 334 182 370 421 431 312
Operating Profit 53 61 64 51 56 50 55 -5 73 86 82 49
OPM % 14% 15% 15% 14% 14% 12% 14% -3% 17% 17% 16% 14%
Other Income 3 18 13 6 13 5 -23 6 9 7 12 23
Interest 6 6 6 7 5 5 6 6 6 5 3 5
Depreciation 10 10 11 13 16 15 14 14 14 14 14 14
Profit before tax 40 63 59 38 48 35 12 -18 62 74 77 53
Tax % 39% 38% 30% 35% 6% 12% 74% 21% 23% 30% 25% 18%
Net Profit 24 39 42 25 45 31 3 -15 48 52 58 43
EPS in Rs 1.72 2.80 2.98 1.78 3.21 2.23 0.21 -1.04 3.44 3.69 4.11 3.12

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
248 345 421 458 540 605 940 1,203 1,431 1,590 1,563 1,641 1,825
202 289 353 380 447 508 784 999 1,194 1,357 1,344 1,404 1,534
Operating Profit 46 56 68 78 93 97 156 204 237 233 219 237 291
OPM % 18% 16% 16% 17% 17% 16% 17% 17% 17% 15% 14% 14% 16%
Other Income 0 5 4 8 4 4 10 18 21 38 -5 34 51
Interest 6 7 10 11 14 17 26 30 27 25 23 19 18
Depreciation 7 7 7 8 8 9 16 27 37 41 58 57 57
Profit before tax 33 47 55 67 74 75 123 164 193 205 133 194 266
Tax % 33% 29% 27% 29% 32% 33% 35% 31% 28% 35% 22% 27%
Net Profit 22 33 40 47 51 50 72 114 138 134 104 143 200
EPS in Rs 1.85 2.73 3.32 3.93 4.23 4.19 5.48 8.66 9.90 9.57 7.43 10.20 14.36
Dividend Payout % 35% 16% 20% 19% 22% 23% 19% 17% 14% 16% 24% 17%
Compounded Sales Growth
10 Years:17%
5 Years:12%
3 Years:5%
TTM:33%
Compounded Profit Growth
10 Years:16%
5 Years:15%
3 Years:1%
TTM:162%
Stock Price CAGR
10 Years:34%
5 Years:12%
3 Years:18%
1 Year:105%
Return on Equity
10 Years:20%
5 Years:18%
3 Years:16%
Last Year:15%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
12 12 12 12 12 12 13 14 14 14 14 14
Reserves 58 85 117 155 193 229 434 510 641 761 840 976
Borrowings 62 66 83 112 156 194 298 378 345 362 391 346
39 58 70 73 95 94 216 236 306 321 350 391
Total Liabilities 171 220 282 352 456 529 962 1,138 1,306 1,458 1,594 1,727
70 87 101 119 152 168 330 556 544 553 613 598
CWIP 2 4 13 18 1 17 18 2 3 27 15 5
Investments 9 8 18 45 75 112 149 23 130 172 276 320
90 121 150 170 228 232 465 557 629 706 689 804
Total Assets 171 220 282 352 456 529 962 1,138 1,306 1,458 1,594 1,727

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
19 37 26 46 38 67 93 126 217 145 232 161
-14 -26 -39 -51 -53 -76 -240 -169 -123 -89 -154 -59
-5 -9 13 9 14 7 151 47 -85 -42 -61 -86
Net Cash Flow 0 1 1 4 -1 -1 4 3 10 14 17 16

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 85 78 77 74 80 75 81 74 74 67 64 74
Inventory Days 53 54 52 61 85 78 110 109 110 113 116 126
Days Payable 53 64 62 58 65 56 61 56 83 70 85 95
Cash Conversion Cycle 85 68 68 77 101 98 130 127 100 110 95 105
Working Capital Days 79 67 67 69 88 84 108 107 83 86 79 84
ROCE % 32% 36% 34% 29% 27% 23% 25% 24% 23% 22% 15% 17%

Shareholding Pattern

Numbers in percentages

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
44.49 44.50 44.50 44.50 44.56 44.56 44.57 44.57 44.57 44.57 44.57 44.62
10.90 11.02 11.41 11.98 13.04 11.31 8.14 2.86 2.82 3.45 4.33 4.40
5.53 5.44 5.56 5.12 5.53 6.80 9.16 13.12 13.22 12.77 12.26 13.12
39.08 39.04 38.53 38.40 36.87 37.32 38.14 39.45 39.39 39.21 38.85 37.86

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