Buy Suprajit Engineering, target Rs 340: Edelweiss Financial Services

Edelweiss Financial Services has a buy call on Suprajit Engineering Ltd. with a target price of Rs 340. The current market price of Suprajit Engineering Ltd. is Rs 268.0 Time period given by the brokerage is a year when Suprajit Engineering Ltd. price can reach defined target.

Suprajit Engineering Ltd., incorporated in 1985, is a midcap company with a market cap of Rs 3721.31 crore.

Investment rationale by Edelweiss


Our recent interaction with Mr. Ajith Rai, Chairman & Managing Director, Suprajit Engineering (SEL), reinforces our conviction on its long‐term prospects. Our optimism is anchored by: (1) SEL’s inorganic growth strategy to take advantage of the consolidation in the global ancillary space; (2) sustained momentum in automotive cables exports— management estimates revenue to jump 2x over FY18‐21E; (3) Wescon’s expanding product basket & geographical footprint beyond US; and (4) resolution of Phoenix Lamps’ issues. We believe, inorganic initiatives will continue to add value (five successful acquisitions ample testimony) as SEL further diversifies its customer and regional mix. Maintain ‘BUY’ with TP of INR340 (21x FY20E PER).