As per below article they are planning for capacity expansion and scale up biz with maruti
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OK Set of numbers from Suprajit …
Promoters have a Private Company which is Suprajit Automotive Private Limited which is into Manufacture of special purpose machinery. The listed company is into General Purpose Machinery.
Do anyone know how there is no conflict of interest between the listed and unlisted entity. How the products offerings are different. Both the Companies have Same Email Address as well as Same Registered office Address !
There is continuous disposal by Director and Immediate Relative who are not the promoters. Also the declaration to exchanges is made after 2 Months of disposal.
Mr. K. Rai has inherited some shares in June. Where does these inheritance came as all the other promoters stake is unchanged. Any one having any Idea ?
Mrs. Arathi Shetty has also acquired some shares in June via Inheritance. The source of these is not known. Further she Gifted some of those Shares the next month in Off Market. Now those shares can be sold easily in Market by the person whom she has gifted. The transactions are very opaque and does not represent best of governance practices.
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Suprajit Automotive pvt. ltd is a 100 percnt subsidiary . Not a red Flag.
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Can someone throw some light on this article?
Is this somewhat related to the issues mentioned above in this forum?
Suprajit Engineering: Acquisition of Halogen Bulb manufacturing unit situated at Perambakkam, Thiruvallur District of Tamil Nadu, from Osram Lighting has been completed and the said unit will operate as a unit of Phoenix Lamps Division with effect from October 04, 2019.
Suprajit wants to be a LED player to become less dependent on cable business as can be disrupted by EV in future
But this acquisition is for mfg of Halogen lights not LED. As per mgmt recent concall, the products manufactured in this facility will be bought back by Osram as per the agreement.
Investment in Franklin and other high risk debt funds.
Investments had increased even more in half yearly BS published for Sep 19.
Disc- Tracking but no investments
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Traction in share price today probably as a result of the following news -
Guys, any idea when the Q4 results are going to be published? Will be very interesting to here the management commentary on the business outlook as well as the investments made in the Franklin funds.
Can anyone share the latest report on Suprajit engineering ?
BSE532509_Mar_03_2020.pdf (1.5 MB)
Found it. Sharing for others benefits.
Company looks promising with auto sector looking to pick up
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@kartiks
Yep, 23 Cr looks like a bit dent, hope they’re able to get back this amount sooner than later.
Not sure if I exactly follow your question and can answer it but aren’t these 2 connected? Investments in the Current Assets of the Balance Sheet would typically add a positive “Other Income” in PnL but this being an exceptional scenario is -ve.
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They have shown the impairments as a one time expense, and have taken the hit in their P&L. Their investments will also be impaired by a similar amount.
However, they have taken only a 10% write down (c.10.5 crores) for their investments in the 5 FT Funds, which I believe is on the lower side. We should expect another 10-15% write down in the coming quarters. Hopefully, the other write downs / impairments (pertaining to restructuring of foreign subsidiaries) are an aberration - On the concall, the management did say that they do not expect further restructuring expenditure going forward.
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I have tried to analyse the impact of EV on Suprajit Engineering. This is with my limited knowledge but can give you sense of direction
4 wheeler:
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Thanks for the analysis @OmkarT. The products that will be disrupted in 2-Wheeler EVs, any idea what they constitute as a % of Suprajit’s total revenue?
It seems that the company is relatively well positioned in its core business of Control Cables. Most Control-cables products itself seems to be relatively insulated well from EV disruption, and there will probably be further opportunities to develop new cables as the 2-Wheelers may get more electrical products. The ROE of the core business also looks great (pre-Phoenix acquisition financials).
My main worry with Suprajit has been around capital-allocation. Management seems to have taken all the juicy cashflows from the control cable business and consistently reinvested them in value-dilutive acquisitions. The Phoenix acquisition, even though ROEs were ok initially, the halogen lamp itself is going to get disrupted by LED, and that is going to happen very quickly as per concalls of leaders in automotive lighting. Wescon, they paid above the odds, and that has not worked out so far. Even the recent acquisition of Osram, is doubling down on the halogen bulb, which will continue to get disrupted albeit more slowly in aftermarket.
The asset allocation doesnt inspire any confidence. Does anyone have any contrary thoughts on the asset allocation front?
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Agree, phoenix lamps is still work in progress. LED has lower impact on Phoenix lamps strategy as they are focusing mainly on aftermarket. In europe there is a law that you can not fit LED light source on the assembly which is created for halogen. That means retrofit LEDs are still prohibited. In terms of market potential for phoenix in aftermarket, see below piece of information from Osram presentation on slide 53 and slide 66. Runway of growth is huge but execution is to be watch out for
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I did some search in Germany about the Trifa lamps and its prospects. Though company is a subsidiary there is no mention of Suprajit or Phoenix in the trifa website.
Most probably they wanted to maintain it as a German manufacturing company. I enquired my colleagues if they use these lamps in their vehicles or do they know about the company Trifa. Younger colleagues had no clue but some older colleagues knew it. I have also visited garages. Some garages do have Trifa emblem on their wall. Company has full suite of lamps for almost every kind for each model.
Coming to revenue from Trifa revenue ( source: Annual reports 2017,2018, 2019 )
| Year | Revenue (Cr) |
|---|---|
| 2017 | 89.7 |
| 2018 | 78.2 |
| 2019 | 70.7 |
I searched in Amazon germany to see if there are any reviews and I could not find much in it. In the Annual reports its mentioned that Trifa is only marketing arms of Phoenix light Division. But with revenues going down and brand visibility in Germany is not that high. It could be that people live around Anweiler may know them better. Germany lamp market is pretty tough given the dominance of Philips and Osram. I haven’t read why the company took over it… but it looks like a mis allocation ( with information available at hand… if I get more information I will share).
I also looked at overall numbers of Suprajit, wonder why ROE, ROCE is continually sliding from 2011. This need to be investigated. But company is able to convert its profits to cash and reduced the receivable days…
Discl: No holdings so far but tracking
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