Suprajit Engineering: Revitalising growth

Suprajit Engineering, the largest maker of 2W control cables with 80% market share in Indian 2W OEMs, is fast gaining market share in high volume, high realisation 4W cable business, as well.

This, along with the latest acquisition of Lamp plant for revitalising Phoenix Lamps Division (PLD) and concentrated approach is expected to brighten up its performance in the near future.

Suprajit Engineering is present across all the segments of automotive industry. It also manufactures halogen bulbs and entered into manufacturing of non-automotive cables.

The company is gradually gaining market share 4W space. The acquisition of Osram’s plant will spur its Phoenix Lamps division and help introducing bulbs in new segments.

There are huge untapped opportunities in aftermarket & exports which Suprajit is actively pursuing. It plans to expand into newer segments in non-auto cables, which is steered by able & ethical management, a much-desired aspect in today’s time.

The company’s strong 10 year growth track record – FY09-19 Sales/EBITDA/PAT CAGR of 23%/25%/31% respectively – which is better than overall industry performance, makes it an ideal portfolio candidate.

Overall we expect the long term prospects to remain strong although in the short term downturn in the two wheeler segment is likely to play spoilsport in the near term.

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