SEL’s diversification across products and clients, promising aftermarket and export potential, and attractive valuations make it worthy of investor consideration
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Suprajit Engineering Ltd. (SEL) (CMP: Rs 323, Mcap: Rs 4,470 crore), a manufacturer of automotive and non-automotive cables, reported an expected set of numbers for Q1 FY22 amid the challenges posed by the second wave of COVID-19. Sequentially, net revenues saw a significant decline and operating margin contracted due to a negative operating leverage. However, SEL’s diversification across products and clients, promising aftermarket and export potential, and attractive valuations (17.8 times FY23 projected earnings) make it worthy of investor consideration….
