Suprajit Engineering is the silent cable-wallah of the auto world — making 400 million cables annually, lighting up the world with halogen lamps, and still struggling to light up its ROE. With global rank #2 in control cables and #3 in halogen lamps, this ₹6,282 Cr smallcap-midcap hybrid is everywhere — from Bajaj scooters to BMW cars. Yet, at a P/E of 57.5 and ROE of just 6.5%, investors are asking: “Itna cable banake bhi profit line kyun cut ho gayi?”
2. Introduction
Incorporated in the 1980s, Suprajit began life making cables for two-wheelers. Fast forward 40 years, and it’s a multinational with 19 plants in India and factories in USA, UK, Hungary, Mexico, Canada, China, and Morocco (via its latest SCS acquisition).
The growth recipe? Acquire, integrate, expand. From Pricol’s Speedo cables to Phoenix Lamps to Wescon Controls in the US, Suprajit has stitched together an empire one buyout at a time. The recent Stahlschmidt Cable Systems (Germany) deal for ₹122 Cr adds another global foothold.
But here’s the irony: while topline has compounded at 16–21% over 5–10 years, profit growth has been negative (-37% TTM, -7% 5Y). Why? Because margins have shrunk from 17% glory days to just ~10%. Basically, the company is selling more cables, but making fewer rupees per cable.
3. Business Model – WTF Do They Even Do?
Suprajit is like the Reliance Jio of cables — if it moves, they have a cable for it.
Mechanical Control Cables: Over 15,000 SKUs! For brakes, clutches, throttles, gears, mirrors, seats, windows. If your car door opens, thank Suprajit.
Halogen & LED Lamps: 110 million capacity per year. Fog, side, dashboard, parking, indicator — basically, if your car lights up like a Diwali rocket, chances are Suprajit made the bulb.
Non-auto & Aftermarket: Agriculture, powersports, off-highway. Also huge aftermarket business — if your bike cable snaps, mechanic pulls out Suprajit’s spare.
It’s a diversified, export-heavy business: India 47% vs exports 53% FY24. But despite global reach, net margins are just 2.6% — the kind of thinness that even a wafer packet would mock.
4. Financials Overview
Metric
Latest Qtr (Jun 25)
YoY Qtr (Jun 24)
Prev Qtr (Mar 25)
YoY %
QoQ %
Revenue
863 Cr
735 Cr
877 Cr
+17.4%
-1.6%
EBITDA
82 Cr
86 Cr
87 Cr
-4.7%
-5.7%
PAT
48.1 Cr
38 Cr
27 Cr
+26.1%
+78.1%
EPS (₹)
3.47
2.75
1.96
+26.2%
+77.0%
Commentary: Sales up 17% YoY, PAT up 26%. QoQ bounce is sharp, but EBITDA flat. The real villain = low margins. EPS annualizes to ~₹14, but market happily pays 57x. Matlab “Bhai, ye toh Tesla jaisa valuation hai, cable factory k liye.”
5. Valuation – Fair Value Range Only
Method 1: P/E
EPS TTM = ₹7.9
Industry P/E = 25–30x
Fair Value = ₹200 – ₹240
Method 2: EV/EBITDA
EV = ₹6,948 Cr
EBITDA TTM = ₹329 Cr
EV/EBITDA = 21x (sector avg 12–15x)
Fair Value = ₹300 – ₹380
Method 3: DCF (rough cut)
Assume 12–15% topline growth, 11% EBITDA margins.
Discount rate 12%.
Fair Value = ₹280 – ₹360
Fair Value Range: ₹200 – ₹380
⚠️ Disclaimer: Educational purposes only. Not investment advice.
6. What’s Cooking – News, Triggers, Drama
SCS Acquisition: Germany-based cable maker bought from insolvency. Plants in Canada, China, Poland, Morocco.
