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Suprajit engineering

Discussion in 'Fundamental Analysis' started by abhijitupsc, Jan 27, 2019.

  1. abhijitupsc

    abhijitupsc Contributor

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    With historical OPM - 17%
    NPM- 9%
    ROE and ROCE - above 20%
    Stable and increasing sales and Net profit growth
    Increasing FCF
    DE ratio around 0.6 to 0.7
    Buffett'S 1 $ test also good
    Intrinsic value around current MCap
    A leading automotive cable player

    I thought of giving a look at this company..the only thing that is bothering me is it's diversification in halogen lamps..can it be considered as synergistic expansion??


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    abhijitupsc, Jan 27, 2019
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  2. abhijitupsc

    abhijitupsc Contributor

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    abhijitupsc, Jan 27, 2019
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  3. manishdeolalkar

    manishdeolalkar Member

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    Suprajit Engineering

    1. Can be good buy
    2. Fundamentals are good
    3. Debt almost zero
    5. Sales growth over 5 years 25%
    6. NPM is 7-9% over 5 years. Ideally it should be above country bond yeild.
    7. OPM is around 15 to 17%. But not managed to get good NPM. May be because of pricing power issues.
    8. From valuation front, it's slightly overvalue. Near 140-150 it's good price to enter.
    9. It satisfies Greenbatt criterias but only if we enter at correct price.
    10. Company is cash rich, CFO good.
    11. Debt increased constantly between 2014 to 17. Need to see the reason.
    12. ICRA has upgraded it's rating so that's good sign.

    On negative side, it's mail revenue is from automotive business(cables & lamps) which has less entry barrier. Also 40% revenue comes from global business which carries other risks like currency fluctuating, protectionism, geopolitical tensions etc.

    There are two related parties entry and transactions entries against them. Need to identify those.


    Overall good company.
     
    manishdeolalkar, Jan 27, 2019
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  4. abhijitupsc

    abhijitupsc Contributor

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    abhijitupsc, Jan 28, 2019
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  5. shabbir

    shabbir Administrator Staff Member

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    Good company but as @manishdeolalkar already said, there is no entry barrier. On top of that I prefer a very unique player in the market.
     
    shabbir, Jan 28, 2019
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  6. abhijitupsc

    abhijitupsc Contributor

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    abhijitupsc, Jan 28, 2019
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  7. lsmalhi89

    lsmalhi89 New Member

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    lsmalhi89, Apr 6, 2019
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  8. abhijitupsc

    abhijitupsc Contributor

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    abhijitupsc, Apr 6, 2019
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  9. nirajshah

    nirajshah Champion

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    nirajshah, Apr 10, 2019
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