A leading cable manufacturer has entered into a strategic partnership with Italian ABS specialist Blubrake to develop and produce advanced anti-lock braking systems (ABS) for non-pedal vehicles. The deal is expected to enhance the company’s technological capabilities and expand its presence in key global markets.
Price Action
During Monday’s trading session, shares of Suprajit Engineering Ltd reached an intra-day high of Rs.372.00 each, falling slightly from the previous closing price of Rs.374.15 per share. However, the shares retreated further and are trading at Rs.353.65 apiece. Over the past five years, the stock has delivered over 180 percent returns.
What Happened
Suprajit has entered into a strategic Licensing and Technology Transfer Agreement with Blubrake S.p.A., an Italian company known for its expertise in ABS solutions for pedalec and speed pedelecs electric bikes. Founded by Fabio Todeschini, Blubrake has emerged as a leader in this segment across Europe.
Through this agreement, Suprajit gains exclusive rights to develop and manufacture Blubrake’s patented ABS technology for non-pedal-based vehicles in India, China, Southeast Asia, and Brazil.
This partnership strengthens Suprajit’s commitment to becoming a global player in the brake systems market. Blubrake’s advanced ABS design simplifies system architecture and offers enhanced performance and efficiency tailored to customer needs.
Management Commentary
Ajith Rai, Founder and Chairman of Suprajit, commented on the development that, “Fabio and his team have built a product that successfully competed against the best ABS systems in Europe, so I must thank Fabio for trusting that Suprajit is the best platform to launch his innovative ABS across multiple geographies and markets. ABS is safety critical and is rightly becoming more commonplace on vehicles today.”
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Business Overview
Suprajit Engineering Ltd., based in Bangalore, India, is a prominent global player in the automotive and cable industry. Founded in 1985, the company focuses on designing and manufacturing mechanical control cables, halogen bulbs, LED lighting solutions, and various other automotive components.
Financial Overview
In its recent financial update, Suprajit Engineering Ltd reported consolidated revenue of Rs.832 crores for Q3 FY25, reflecting a 15 percent increase compared to Rs.724 crores in Q3 FY24. Moreover, the company reported a 17 percent decrease in net profits to Rs.33 crores in Q3 FY25, from Rs.40 crores posted during the same period last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 12.44 percent and a Return on Equity (ROE) of 10.85 percent. Its Price-to-Earnings (P/E) ratio stands at 39.66, lower than the industry average of 47.53. Furthermore, the company maintains a current ratio of 2.79, a debt-to-equity ratio of 0.70, and an Earnings Per Share (EPS) of Rs.9.46.
Written by – Siddesh S Raskar
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