Suprajit, India’s largest automotive cable maker and #2 globally, also moonlights as the world’s #3 halogen lamp producer—because someone still has to supply bulbs for budget bikes and old trucks. With ₹3,405 Cr FY25 revenue, ₹109 Cr PAT, and a market cap of ₹6,593 Cr, this company trades at an eye-watering P/E of 60x, while ROE struggles at 6.5%. Think of it as a Maruti 800 priced like a Mercedes.
2. Introduction
The Suprajit story is a masterclass in humble beginnings and global hustle. Started with automotive cables, they now churn out 400 million cables a year and 110 million halogen lamps. In the EV age, this is like being the world’s largest fax machine supplier—important, but not sexy.
But don’t write them off. Their client list is strong: Hero, Bajaj, TVS, BMW, Volkswagen, Mahindra. They’ve made a habit of acquiring struggling businesses abroad—Pricol’s cable unit, Phoenix Lamps, Wescon Controls, and most recently Stahlschmidt Cable Systems (Germany) out of insolvency. Basically, Suprajit is like a desi thrift shopper in global auto markets—buy cheap, fix, and flaunt.
So why the dissonance? Sales growth is robust (15–20% CAGR), but profits have actually fallen over 3–5 years. Yet the stock trades at premium multiples rivaling Uno Minda and Schaeffler. Either investors see Suprajit as an underdog ready to shine, or they’re just nostalgic about cables.
3. Business Model – WTF Do They Even Do?
Suprajit operates across three main product buckets:
Control Cables (Core): For 2W, 3W, 4W, and off-highway. Throttle, brake, clutch, gear shift—basically if it pulls, pushes, or yanks in a vehicle, Suprajit makes it.
Halogen Lamps: With EVs and LEDs booming, this is like selling CDs in a Spotify world. But hey, there are still millions of low-cost vehicles worldwide using halogen.
Mechatronic Products: Seat latches, steering locks, headrest mechanisms—fancy word for “car furniture hardware.”
Geography: 47% India, 53% exports. Big flip from 2012 when exports were 90%. Segments FY24: Auto OEM 27%, 2W OEM 36%, Aftermarket 18%, Non-auto 19%.
Narrator note: The diversification looks good on PPT slides. But profit margins are stuck at 9–10% OPM, while peers run at 15–20%. It’s like training at the gym every day but still losing to your cousin in arm wrestling.
4. Financials Overview
Source table
Metric
Latest Qtr (Q1 FY26)
YoY Qtr (Q1 FY25 est.)
Prev Qtr (Q4 FY25)
YoY %
QoQ %
Revenue
₹863 Cr
~₹735 Cr
₹877 Cr
17.4%
-1.6%
EBITDA
₹82 Cr
~₹70 Cr
₹87 Cr
17%
-6%
PAT
₹48.1 Cr
~₹38 Cr
₹27 Cr
26%
78%
EPS (₹)
3.47
2.75
1.96
26%
77%
👉 Strong recovery this quarter, but margins are still single-digit. PAT surge looks great, but the base effect helps.
Question: Is this quarter the start of a Suprajit “re-rating,” or just cables whipping around cyclically?
