Auto Ancillary stock engaged in the business of manufacturing and selling automotive parts and other components to well-known players like BMW, Aston Martin, Audi, and many others jumped 13 percent in the day’s trade upon declaring Buyback of equity shares of the company at a 30 percent premium for a consideration ~Rs 113 Crores along with record date.
Price Action
With a market capitalization of Rs. 8,100 Crores, the shares of Suprajit Engineering Limited were trading at Rs. 578 per equity share, up 7 percent from its previous day’s close price of Rs. 538.75.
Buyback of Shares
The Board of Directors of Suprajit Engineering Limited has considered and approved the Buyback of 15 Lakh equity shares of the company through the tender route at Rs. 750 per equity share which is at a premium of ~30 percent from its current market value for an aggregate consideration of Rs. 112.50 Crores.
In addition, August 27, 2024, was determined as the record date by the company’s board of directors to determine the entitlement and the names of equity shareholders who would be eligible to participate in the buyback.
Also read
Q1FY25 Results
Its Revenue from operations grew by 8 percent YoY from Rs. 679.68 Crores in Q1FY24 to Rs. 734.85 Crores in Q1FY25 and it declined by 6 percent QoQ from Rs. 783.1 Crores in Q4FY24 to Rs. 734.85 Crores in Q1FY25.
Its Net Profit grew by 15 percent YoY from Rs. 33.11 Crores in Q1FY24 to Rs. 38.13 Crores in Q1FY25 and declined by 36 percent QoQ from Rs. 59.15 Crores in Q4FY24 to Rs. 38.13 Crores in Q1FY25. Its Net Profit Margin increased from 4.78 percent in Q1FY24 to 5.11 percent in Q1FY25.
About the Company
Suprajit Engineering Limited is engaged in the business of manufacturing and selling automotive parts and other components. Its product portfolio consists of Control cable mechanisms, instrument clusters, vehicle lighting, and allied motion control parts.
SEL is the market leader in automotive cables with ~75 percent market share in 2W OEMs (48 percent of segment revenue) and ~32 percent in 4W OEMs (18 percent of segment revenue).
It has a strong customer base consisting of well-known players like BMW, Aston Martin, Audi, Honda, Ford, Jaguar, TVS, Bajaj, Hero, Osram, Escorts, Volkswagen, John Deere, and many others.
Written by: Bharath K.S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
