HDFC Securities: Suprajit Engineering - Limited upside

Suprajit Engineering (SEL) consol 3QFY18 EBITDA and PAT numbers were slightly below estimates. Net sales at Rs. 3.66bn (+18% YoY) led by 28% growth in cable business, offset by muted growth in Phoenix (+2% YoY) and Wescon business(+10% YoY). Consol EBITDA stood at Rs. 582mn (+18% YoY) with margin at 15.9 % (flat YoY, -75bps QoQ). Margin contracted 75bps sequentially led by margin pressure in cable business (-73bps YoY) and Wescon(-33 bps YoY), offset by 120bps margin improvement by Phoenix.

For detailed analysis please see attached company report...

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