Suprajit Engineering Limited

Consumer Cyclical — Auto Parts · NSE

₹465.00+₹3.55 (+0.77%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Suprajit Engineering Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Suprajit Engineering Limited manufactures and sells automotive cables, halogen lamps, speedometers, and other automotive components in India, the United States, and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees1,833

Annual revenue₹3,818 Cr

How does it make money?

Turns over ₹3,818 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 1,833 employees supports ₹2.08 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin13.1%

Net margin4.8%

Revenue / employee₹2.08 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Some evidence

ROCE of 19.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.2%

ROE12.7%

Peer median ROE23.0%

What is the outlook?

6 analysts covering the stock expect revenue to grow about 12.6% and earnings to grow about 24.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.6%

Est. earnings growth+24.7%

Analysts6

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +39% while net margin moved -14% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+39%

Margin effect-14%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROE of 12.7% is moderate

Quality vs. Valuation

Company Quality

59/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

60/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

34.2x

3Y Median

38.7x

40 monthly readings · mean 45.3x · range 31.2x–70.2x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 12% below its 3y median of 38.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 25% below the peer median of 45.7x.

vs. its own history

Fair

38.7x median over 40 months · -12%

vs. sector peers

Cheap

45.7x median of 4 peers · -25%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

34.2x

P/B

4.44x

EV/EBITDA

14.6x

PEG

5.43

Dividend Yield

0.75%

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 15.6% to 19.2%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Debt is rising
Total debt is up 38% over 3 years — worth checking what it funded.

Red Flags

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 38% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 25% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 9% a year✓ 11.6% CAGR
Latest reported year was 23.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 13.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹53 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 19.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 7 neutral · 0 weak

Market Cap

₹6,379 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.2x

Fair

Fairly valued against the generic band

P/B Ratio

4.44x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹13.6

Profitable

Profitable on a per-share basis

ROE

12.7%

Moderate

Moderate capital efficiency

ROCE

19.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.69x

Moderate

Moderate leverage

Revenue Growth (YoY)

23.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

8.6%

Modest

Slow profit growth

Dividend Yield

0.75%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹53 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹465

P/E (Forward)

18.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

8.4%

Average

Average margins

Net Margin

4.6%

Average

Average bottom-line conversion

Current Ratio

1.45

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

474.0 / 492.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

38.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,748 Cr	₹2,892 Cr	₹3,268 Cr	₹3,818 Cr	+11.6%
EBITDA	₹332 Cr	₹341 Cr	₹347 Cr	₹499 Cr	+14.5%
EBITDA Margin	12.1%	11.8%	10.6%	13.1%	—
PAT (Net Profit)	₹152 Cr	₹167 Cr	₹99 Cr	₹183 Cr	+6.3%
EPS	₹10.98	₹12.06	₹7.19	₹13.3	+6.6%
ROE	12.4%	12.3%	7.8%	12.7%	—
ROCE	15.6%	16.5%	15.9%	19.2%	—
Total Debt	₹718 Cr	₹708 Cr	₹817 Cr	₹993 Cr	+11.4%
Free Cash Flow	₹147 Cr	₹158 Cr	₹74 Cr	₹53 Cr	-28.8%

🟢 Revenue has grown at 11.6% a year over 3 years.

🟢 EBITDA has grown at 14.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 13.1% over 3 years.

🟢 PAT (Net Profit) has grown at 6.3% a year over 3 years.

🟢 EPS has grown at 6.6% a year over 3 years.

🟡 ROE has held roughly flat at 12.7% over 3 years.

🟢 ROCE has risen from 15.6% to 19.2% over 3 years (+3.6 pts).

🔴 Total Debt has grown at 11.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 28.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,173 Cr

Total Liabilities

₹1,736 Cr

Total Debt

₹993 Cr

Cash & Equivalents

₹100 Cr

Operating Cash Flow

₹171 Cr

Capex

-₹118 Cr

Shareholding (proxy)

Institutional Holding

22.0%

Insider Holding

50.6%

Corporate Actions

Dividend Rate

₹3.5

Ex-Dividend Date

01 Sept 2026

Analyst Consensus

Recommendations

6 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹623.67

+34.1% vs CMP

Target Range

₹606 – ₹653

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

2 positive2 mixed2 general

SUPRAJIT Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Suprajit Engineering gains 14% on posting 161% YoY rise in Q4 profit

Business Standard, 26 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Is Suprajit Engineering the Best Stock in Its Sector? A Look at the Numbers

Univest, 12 Oct

Suprajit Engineering Limited Just Beat Revenue Estimates By 5.9%

Simply Wall Street, 09 Aug

Buzzing Stocks: Suprajit Engineering surges 12% on robust earnings; BEL up on order win

Moneycontrol.com, 26 MayOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Suprajit Engineering Q4 profit jumps over 2.5x; recommends ₹2 dividend

CNBC TV18, 25 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13/20

🟢Financial HealthStrong15.3/20

🟡GrowthModest9.3/20

🔴ProfitabilityWeak6.5/15

🟡ValuationFair8.1/15

🟡RiskModerate6/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓Revenue growth stays above 9% a year11.6% CAGR
✓EBITDA margin holds above 11%13.1%
✓Free cash flow remains positive₹53 Cr
✓Debt / EBITDA stays below 2x2.0x
✓ROCE stays above 16%19.2%