Company Overview

World largest 2 wheeler cable manufacturer in 2011-2012

Largest exporter of 2Wheeler cables from India
Operating capacity Chart
Transformation Suprajit 2.0
http://www.bseindia.com/downloads/ipo/201622513166PD_SEL.pdf
10 Year
5 year
Shareholding Pattern

Shareholders more than 1 percent

Name Category Dec-16 Sep-16 Jun-16 Mar-16 Dec-15
SUNDARAM CLAYTON LIMITED Public 4.39 4.39 4.39 4.39 4.81
Shareholding
DSP BLACKROCK MICRO CAP FUND Public 2.32 2.26 2.03 2.03 -
Shareholding
ICICI PRUDENTIAL LONG TERM EQUITY Public 2.23 2.24 2.24 2.24 -
FUND (TAX SAVING) Shareholding
TVS MOTOR COMPANY LIMITED Public 2.2 2.2 2.2 2.2 2.41
Shareholding
DSP BLACKROCK EMERGING STARS Public 1.72 1.72 1.72 1.72 -
FUND Shareholding
SHOBITA PUNJA Public 1.47 1.47 1.47 1.39 1.52
Shareholding
MONDRIAN EMERGING MARKETS SMALL Public 1.45 1.45 - - -
CAP EQUITY FUND,L.P. Shareholding
MALABAR INDIA FUND LIMITED Public 1.41 1.41 1.41 1.41 1.54
Shareholding
KULA RAMPRASAD RAI Public 1.37 1.37 1.37 1.37 1.5
Shareholding
BAJAJ ALLIANZ LIFE INSURANCE Public 1.36 1.34 1.24 1.46 -
COMPANY LTD. Shareholding
ANINDA S SHETTY Public 1.07 1.07 1.07 1.07 1.17
Shareholding
DEEPA RANJIT RAU Public 1.07 1.07 1.07 1.07 1.17
Shareholding
EMERGING SECURITIES PVT LTD Public 1.07 1.07 2.14 1.01 1.44
Shareholding
ICICI PRUDENTIAL MULTICAP FUND Public 1.04 1.04 1.04 1.04 -
Shareholding
KULA AJITH KUMAR RAI Promoter 33.7 33.7 33.7 33.7 37.95
Group
 SUPRIYA AJITHKUMAR RAI Promoter 10.92 10.92 10.92 10.92 13.02
Group
Figures given above are % of equity capital

From <https://www.valueresearchonline.com/stocks/shareholding_pattern.asp?code=5628>

Answer to technology getting obsolete for PLL

Based on trends seen in the mature European automotive market, we believe adoption of LED lights for headlamps is likely to be gradual. Therefore,
we reckon that PLLs existing product range (halogen auto lamps) will remain relevant in the foreseeable future.
a report justifying the switch over to LED is slow and will take time. //

GST will help to narrow the pricing differentials with the unorganized players

Product and Customers

Clientele:
TVS Motor Company
Hero Honda Motors
Bajaj Auto
Telco
 Yamaha Motor
Hyundai Motors (TierII)
Ford (TierII)
Honda Motorcycles & Scooters
LML
Lear Corporation
Eicher Motors
General Motors (TierII)
Mahindra & Mahindra
Swaraj Mazda
Piaggio
JCB

From <http://profit.ndtv.com/stock/suprajit-engineering-ltd_suprajit/reports>

Dominance in 2W OEMs
Expanding capacity, Expanding Clientele

Key Risk factors

Strengths http://www.bseindia.com/downloads/ipo/201622513166PD_SEL.pdf
Established Presence in the Indian 2W OEM Space and Gaining Traction in Other Spaces
Expanding OEM clientele Page 46
Strong Design and Development Focus
Production facilities being located in close proximity to our OEM customers and manned with a dedicated on-site design and development
teams to address the customization requirements of our customers
design and development center in Tamworth, UK.
Pan India Coverage Through a Strong Distribution Network
Growth from Inorganic Expansion
Diversified Revenue Mix
Strategy
Focus on Consolidating Position and Outperforming Industry Growth
Increasing our Market Share in the Automotive Space
Focus on Higher Margin Aftermarket Sales
Enhancement of Product Portfolio
Value Creation through Selective Strategic Acquisitions

Market Share

Shift in 2W industry volumes towards scooters is a positive trend for SEL

2W
Scooter Shift-High Content
HMSI-Share of business with Key 2W OEMs; Growing Market share
Halogen Lamps- Phoenix Leveraging channels-Cross Selling opportunities
Export Revenue
Capacity boost with Sanand Plant

4W-Inorganically driven-Shah Concabs

Marquee clients-BMW, Nissan, Renault
Export revenue
Around 70% of SELs export revenue comes from the 4W OEMs. The client base includes global majors like Suzuki, GM, BMW, VW, JLR and Nissan. The
company also supplies to a few Tier-1 vendors such as Magna, Bentler, Lear, Toyo and Inteva.

Aftermarket
Branded Suprajit cables
GST taking the price differentiation away
Distribution network further stronger with Phoenix

Non Automotive
Key customers in this segment are John Deere, Kubota, New Tractor Holland, etc.
~70% of the demand is catered to by the unorganised/small-scale players. We estimate that SEL currently holds ~5% market share and competes
mainly with Remsons and Acey Engineering
Higher brand recall

Sales Mix

Growing Dealer Network

Capacity Utilization 80%+
new Plants at Patherdi, Sanand and Chennai
Proximity To OEMs is a major USP for SEL

Valuations
Net D/E to improve from 2x in FY15 to 1.4 by FY18E
One year PE chart
EV/EBITDA