1. At a Glance
Suprajit Engineering Ltd (SEL) — the low-profile empire of cables and lamps — is now flexing its global muscles harder than your gym bro before Diwali. With amarket cap of ₹6,170 crore, astock price of ₹445, and aP/E of 38.7x, the company’s story screams “premium component manufacturer with value-chain ambitions.”
InQ2 FY26, revenue hit₹941 crore(up 12.9 % YoY) andPAT ₹51 crore, up a jaw-dropping10,515 % YoY(yes, you read that right — last year’s base was almost flat). This puts the firm on an annualised EPS of roughly ₹14.7, valuing it at an impliedP/E ≈ 30×on forward basis. Debt sits at₹927 crore, EV/EBITDA ≈ 15×, and ROCE = 11 %.
While auto-component peers like Uno Minda and Schaeffler are revving with double-digit margins, Suprajit is busy tightening cables around every major auto OEM on earth — fromHero MotoCorp and Bajaj Auto to BMW and Volkswagen.
So what happens when India’s clutch-and-cable champion buys half of Germany’s SCS out of insolvency, launches its own braking division, buys back shares at ₹750, and still keeps ROE under 7 %? Let’s find out — with a laugh and a ledger.
2. Introduction – From Garage Grease to Global Grit
If you’ve ever pressed a clutch or twisted a throttle in India, odds are you’ve used a Suprajit cable. The company has built its empire literally on “control” — mechanical control cables, to be exact — and is now adding lamps, EV parts, and European bankruptcies to the mix.
Started in 1985 by Ajith Rai (the cable whisperer himself), Suprajit has grown from a garage-sized supplier to a multi-continent manufacturer with19 plants in India and 5 abroad(US, Mexico, Hungary, UK). From400 million cables p.a.to110 million halogen lamps p.a., Suprajit now supplies nearly every wheeled contraption with a headlight or handlebar.
The company’s transition over the past decade is textbook Indian globalization. Back in FY12,exports were 90 %of revenue; now India contributes 47 %. That’s not a reversal — it’s Suprajit playing both sides of the trade war: “Made in India” for the world, and “Made for India” to hedge global downturns.
But it’s not just cables anymore. Through acquisitions likePhoenix Lamps,Wescon Controls (USA), and most recentlyStahlschmidt Cable Systems (Germany), Suprajit has become a blend of desi frugality and global engineering. The challenge? Managing rising debt, integration pain, and margins that refuse to cross 12 %.
Still, Suprajit’s management insists it’s not done pulling strings — literally.
3. Business Model – WTF Do They Even Do?
Suprajit is basically the “cable operator” of the automobile world — except instead of giving you Zee TV, it gives your clutch pedal a reason to live.
Core Segments:
- Mechanical Control Cables:Brake, clutch, throttle, gear shifter, and mirror cables for two-wheelers, PVs, and off-highway vehicles. 15,000 + SKUs = no one escapes their grip.
- Halogen Lamps:80 + SKUs of fog, interior, and headlamps — essentially every bulb that blinks in your car.
- Mechanical Products:Seat latches, steering locks, head-rest mechanisms — the hardware that keeps your car from falling apart mid-turn.
- LED Drop-In Solutions & EV Cables:New growth avenue targeting 2W EVs and agri-tech.
Revenue Mix FY24:
- Automotive 27 %, 2-Wheelers 36 %, Aftermarket 18 %, Non-Auto 19 %.Diversified, yes — but
- notice how auto is still the biggest driver of this “non-auto” growth story.
The company’s customer list is basically a Bharat-to-Berlin road trip: Hero, TVS, Bajaj, M&M, BMW, Volkswagen, Piaggio — everyone needs a Suprajit connection.
Suprajit’s secret sauce? High volume + low cost + high precision. Think of it as the Maruti of auto components — reliable, frugal, but unlikely to host Formula 1 anytime soon.
4. Financials Overview
| Metric (₹ Cr) | Sep Q FY26 | Sep Q FY25 | Jun Q FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 941 | 834 | 863 | 12.9 % | 9.0 % |
| EBITDA (≈ OP) | 100 | 63 | 82 | 58.7 % | 21.9 % |
| PAT | 51 | 0 | 48 | 10,515 % | 6.2 % |
| EPS (₹) | 3.67 | 0.03 | 3.47 | > 10,000 % | 5.8 % |
Commentary:The PAT jump looks like a Bollywood comeback scene — because last year was a flop show. Margins hover near 11 % OPM, steady but not sexy. Annualised EPS ≈ ₹14.7 puts the stock at ~30× P/E — expensive for a low-double-digit ROE company, but the market loves anyone with “EV focus” in slides.
5. Valuation Discussion – Fair Value Range
Method 1: P/E Approach
- TTM EPS = ₹11.5.
- Industry P/E ≈ 32×.
- Fair Value = 11.5 × (25–32) = ₹288 – ₹368.
Method 2: EV/EBITDA Approach
- EV = ₹6,939 Cr; EBITDA = ₹462 Cr (TTM).
- EV/EBITDA ≈ 15×.If re-rated to peer band (12–16×): Fair EV ₹5,500 – ₹7,400 Cr → Implied Price Range ₹355 – ₹475.
Method 3: DCF Simplified
- Assume FCF ₹125 Cr, growth 8 % for 5 yrs, discount rate 12 %, terminal 5 %.
- Implied Equity Value ≈ ₹5,800 Cr → ~₹415 per share.
📘Fair Value Range (educational): ₹360 – ₹470 per share.Not investment advice.
6. What’s Cooking – News, Triggers & Drama
2025 has been Suprajit’s season of acquisitions, agreements & GST notices:
- SCS Germany Acquisition Closed– Bought out of insolvency for ~₹122 Cr across Germany, Canada, China & Morocco. Completed in two tranches (Mar & May 2025).
- Buyback @ ₹750– 15 Lakh shares for ₹112.5 Cr. Talk about confidence… or a very fancy signal to fund managers.
- Licensing Deal with Blubrake– Entered ABS technology for two-wheelers
