Auto ancillary stock in focus after investing ₹1.26 Cr in Solarcraft Power India

One of the auto-ancillary stocks engaged in the manufacturing and trading of automotive cables and components, non-automotive cables and components, halogen lamps, LED drop-in solutions, and mechanic products. The stock is in focus after after investing Rs. 88.2 lakh directly and Rs. 37.8 lakh through its wholly-owned subsidiary in Solarcraft Power India 26 Private Limited. 

Stock Price Movement: 

With a market capitalization of Rs. 6,621.82 crores, the shares of Suprajit Engineering Limited reached an intraday high of Rs. 498.95 per equity share, rising nearly around 1.61 percent from its previous day’s close price of Rs. 491.05. Since then, the stock has retreated and is currently trading at Rs. 482.60 per equity share. 

What Happened: 

Suprajit Engineering Limited has announced strategic investments in Solarcraft Power India 26 Private Limited, committing Rs. 88.2 lakh and an additional Rs. 37.8 lakh through its wholly owned subsidiary, Suprajit Automotive Private Limited. 

These investments will be aimed at acquiring a minimum 26% stake via equity and convertible debentures and will enable the company to source renewable solar energy as a captive consumer from Karnataka-based power plants. 

Future growth prospects: 

Suprajit Engineering Limited plans to expand its global operations in Morocco, Canada, and China within the next 6–9 months. The company focuses on improving operational efficiency and acquiring new customers to achieve double-digit EBITDA margins. It expects SCS to contribute an additional $40-45 million in revenue in the next financial year. 

Business Division: 

Suprajit Controls Division achieved 3% revenue growth and stronger EBITDA despite challenges. The Domestic Cable Division focuses on profitable growth and expansion into braking products. The Electronics Division targets international markets beyond India and EVs, with plans to develop in-house infrastructure to support global expansion initiatives. 

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New Product Development: 

Suprajit Engineering’s Electronics Division is expanding its product portfolio with actuators and braking systems. The division plans to penetrate non-EV segments and enhance offerings to global OEMs, leveraging its technology center in Bangalore for innovation and development. 

Recent quarter results and ratios:

Suprajit Engineering Limited’s revenue has increased from Rs. 708.87 crore in Q2 FY24 to Rs. 833.60 crore in Q2 FY25, which has grown by 17.6 percent. The net profit of Suprajit Engineering Limited has down by 98.62 percent from Rs. 34.76 crore in Q2 FY24 to Rs. 0.48 crore in Q2 FY25. 

Suprajit Engineering Limited’s revenue and net profit have grown at a CAGR of 16.67 percent and 12.57 percent, respectively, over the last four years. 

In terms of return ratios, the company’s ROCE and ROE should be 13.9 percent and 13 percent, respectively. The debt-to-equity ratio of the company is to be 0.70x. Suprajit Engineering Limited’s EPS is to be Rs. 9.97. 

Company Overview: 

Suprajit Engineering Limited was established on May 24, 1985, and is based in Bangalore, Karnataka. The company is a leading manufacturer in the automotive components sector. The company specializes in automotive and non-automotive cables, halogen lamps, LED solutions, and mechanical products like seat latches and steering locks. 

Written By – Nikhil Naik 

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