Suprajit Engineering(SEL) displayed strong all-round performance in Q2FY21. Revenue grew by 11% YoY Rs. 4.4bn led by strong growth in Phoenix lighting (14% YoY) and Automotive able division (12% YoY). EBITDA grew by 31% YoY to Rs. 735mn. Margin expanded by 258bps YoY to 16.6% led by high aftermarket and export revenue along with various cost control initiatives. Phoenix lighting revenue grew 14% YoY to Rs 922mn and SENA division (non-automotive cable) grew by 7% YoY to Rs 786mn. Management...

for margin improvement. However, we believe current valuations already discount most of the for its strategically important SENA strategy, while Phoenix Lamps incremental growth will majorly positives of the better product mix, growth at export front and margin improvement and hence come from Osram's orders and aftermarket. Stringent cost rationalisation measures and better offer limited upside from here. We assign accumulate rating with target price of Rs. 474...

Surpajit Engineering reported decent numbers amid tough market conditions. Revenue for Q1FY21 de-grew by 51% YoY to Rs. 1.77bn due to production cuts taken by various OEMs owing to lockdown. EBITDA turned negative to Rs. 48mn (vs estimated loss Rs 100mn). Phoenix lighting revenue de-grew 49% YoY to Rs 337.3mn while SENA division (non-automotive cable) numbers beat estimates, benefited from temporary supply disruption of its one of competitors. Revenue de-grew 24% YoY to Rs 632.9mn while the company was able to...

Surpajit Eng reported decent performance amid challenging conditions. EBIDTA was Rs.549mn (-13.6% YoY), with a 14.1% margin (62bps YoY, vs. Est. 12.8%), strong operating performance in the core cable business was partially offset by fall in Phoenix margin. The core cable business benefited from strong replacement and export demand and increase in content per vehicle. Phoenix Lamp's revenue de-grew by 11% YoY to Rs.732 mn, and margin contracted sharply to 4.1% YoY, due to several one offs. The SENA...

Auto industry is looking forward for a better The employees whose salary levels are above Rs 5 lakhs p.a. will have to take a Diwali. On the back of improvement in rural...

We are lowering our target PE Multiple to 17x and are revising our rating to Neutral with a TP of Rs 216 (17xDec-18). Suprajit Engineering reported marginally higher revenue growth (+10%) as compared to our estimates, but margins at 14.9% (-90bp YoY) continue to be impacted by the other business segments i.e. Phoenix Lamps and non automotive cable business. Management has given a muted outlook for the near term, driven by 1) moderation in the OEMs segment (especially 2Ws) and 2) sustained margin pressure in Phoenix and non automotive business both.

Performance Remains Satisfactory: Revenue for Q2FY19 came in at Rs. 3914 Mn (in-line with our estimates) whichimproved by 16.3% YoY. This is reflective of the automobile industry growth at 10% YoY during Apr-Sep 2018.

We have cut EPS by 13/9% for FY19/20E factoring in margin pressure. Expect EPS CAGR of 15% over FY18-21E. We value the stock Rs 282(20xSept-20E EPS). Maintain BUY Suprajit Engineering (SEL) delivered decent revenue growth although with subdued margin performance in 2Q. Consol Revenue at Rs 3.9bn (+16% YoY) led by strong growth in core cable business, offset by muted growth in Phoenix (flat YoY) and seasonally weak quarter for Wescon.

We value the stock Rs. 289(20xFY20E EPS) vs 296 earlier. Maintain BUY Suprajit Engineering (SEL) consol EBITDA and PAT numbers were slightly below estimates in 1Q. Net sales at Rs. 3.6bn (+12% YoY) led by 19% growth in core automotive cable business, offset by muted growth in Phoenix (+4% YoY) and Wescon business(+4% YoY). Consol EBITDA rose 21% YoY at Rs. 554mn with margin at 15.3% (+107bps YoY/-275 bps QoQ).

Suprajit has consistently outperformed industry on revenue/EBITDA CAGR over the past decade, while maintaining RoCE at ~25%. Domestic cable segment grew in line with the automobile industry with both exports & aftermarket clocking strong double digit growth.

Tapping Newer Segments: Suprajit Engineering Ltd (SEL) reported good traction in the US and domesticcable business for FY18 which led revenue to improve by 18.0% YoY at Rs. 14311 Mn. Domestic automobile industry picked up by 14.2% during FY17-18 and so we believe that there is sizeable opportunity to supply cables and lamps in the aftermarket channel.

Expect revenue/EPS CAGR of 18/23% over FY18-20E. We value the stock Rs. 296(20xFY20E EPS). Maintain NEU Suprajit Engineering (SEL) consol 4QFY18 Rev/EBITDA/PAT numbers were below estimates but margin beat estimates. Net sales at Rs. 4.06bn (+13% YoY) led by 18% growth in standalone cable business, and +9% growth in Wescon business marginally offset by muted growth in Phoenix (flat YoY). Consol EBITDA stood at Rs. 734mn (+13% YoY) with margin at 18.1% (flat YoY, +219bps QoQ). Margin recovered sequentially led by 257bps margin improvement by Phoenix and strong margin of Wescon.

Suprajit Engineering (SEL) reported 4QFY18 revenues of INR 4.1bn (+13% YoY, +11% QoQ), driven by increase in aftermarket lamp business and domestic OE cable business, in line with increase in domestic 2W and 4W sales. Consol. EBITDA margin stood at 18.1% (flat YoY, +170bps QoQ), driven by higher sales of H7 lamps during 4QFY18. Capacity utilization at H7 line improved during 2HFY18 to c.40% (vs 25%, 2HFY17). Phoenix Lamps (PLD) EBITDA margin at 14% (FY18) was flat YoY, despite good aftermarket business as export subsidiaries (Luxlite and Trifa) faced headwinds in gaining back key customers and difficulty in passing-on raw material prices to OEs. After two years of no growth, management expects PLD to grow...

Q3FY18 consolidated EBITDA came in at Rs 582 mn (+22% YoY, +4% QoQ), 5% below est. on lower profitability at Wescon. Management on call reiterated it will continue to outperform industry growth by 5-10%, led by market share gains and increase in content supplied.

We roll forward our TP on FY20 and value the stock Rs. 296(20xFY20E EPS) vs 305 earlier. Maintain NEU Suprajit Engineering (SEL) consol 3QFY18 EBITDA and PAT numbers were slightly below estimates. Net sales at Rs. 3.66bn (+18% YoY) led by 28% growth in cable business, offset by muted growth in Phoenix (+2% YoY) and Wescon business(+10% YoY). Consol EBITDA stood at Rs. 582mn (+18% YoY) with margin at 15.9 % (flat YoY, -75bps QoQ). Margin contracted 75bps sequentially led by margin pressure in cable business (-73bps YoY) and Wescon(-33 bps YoY), offset by 120bps margin improvement by Phoenix.

Revenue for 9MFY18 recorded Rs. 10247 Mn, up by 21.6% YoY, higher than theautomobile industry growth of 11.3% YoY during 9MFY18. The industry size for cables and lamps in the domestic market is quite vast, given that ~ 20 Mn vehicles are being added annually, so we believe that there is a sizeable opportunity for the company to expand its presence across all automotive segments.

Q2FY18 consolidated EBITDA was in line with our estimate. Aftermarket revenue (~20% of sales) remained subdued in the wake of GST implementation and the management expects recovery in H2.

Maintain NEU with TP of Rs 305 (20x SEL's consol Sept-19E EPS). Suprajit Engineerings (SEL) consol 2QFY18 result was in-line with estimates. Net sales came in at Rs 3.36bn (+19%YoY), led by 8% growth in the standalone business, 7% growth in PLLs business and incremental revenue of Rs 513mn from Wescon. Consol EBITDA was at Rs 560mn (+19.4% YoY), with margin at 16.6% (flat YoY, +238bps QoQ), led by expansion in margins in the standalone business (+100bps YoY).

Q1FY18 consolidated EBITDA was below consensus and our estimates due to higher-than-expected impact of GST implementation on aftermarket revenue. The next leg of growth is likely to be driven by (1) gaining share in global auto and non-auto cables (including inorganic)

Maintain NEU with a revised TP of Rs 306 (20x SEL's consol Jun-19E EPS) Suprajit Engineerings (SEL) consolidated 1QFY18 result came in below estimates, with PAT at Rs 226mn (+7% YoY), led by lower operating efficiencies. Revenue witnessed a jump of 27% YoY to Rs 3.2bn, while EBIDTA margin contracted sharply to 14.3% (-290bps YoY, -360bps QoQ).