During Wednesday’s trading session, the shares of India’s largest automotive cable and halogen bulb maker surged by nearly 4.6 percent to Rs. 471.8 on BSE, after signing an MoU with Chuo Spring Company Limited, Japan.
With a market cap of Rs. 6,301 crores, at 12:02 p.m., the shares of Suprajit Engineering Limited (SEL) were trading in the green at Rs. 459.7, up by nearly 2 percent, as compared to its previous closing price of Rs. 450.95.
What’s the news:
According to the latest regulatory filings with the stock exchanges, Suprajit Engineering announced the signing of a Memorandum of Understanding (MoU) with Chuo Spring Company Limited, Japan.
This collaboration includes the formation of a 50:50 joint venture (JV) in India to design, manufacture, and supply transmission cables, and a Technical Assistance (TA) agreement, which will grant the JV access to Chuo’s unique Japanese Transmission cable technology.
The JV and TA will initially focus on delivering projects for India’s two leading Japanese PV OEMs.
This collaboration combines the expertise of two globally recognised cable suppliers, expanding Chuo’s specialized transmission cable technology into the Indian market, while potentially enhancing Suprajit’s support for its global OEM customers.
The collaboration further expands SEL’s product range for key Japanese customers and strengthens its position in the transmission cable market moving forward.
About Chuo Spring Company:
Chuo is a leading Japanese manufacturer of transmission cables, supplying the world’s leading Japanese OEMs. With a global presence through plants in the US, China, Indonesia, and Thailand, Chuo has a consolidated revenue of $675 million.
Chuo’s primary products include suspension springs, precision springs (including engine valve springs), and control cables, which are supplied to Japanese OEMs and Tier 1 customers around the world.
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Financials:
Suprajit Engineering reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 17.6 percent, rising from Rs. 708.87 crores in Q2 FY24 to Rs. 833.6 crores in Q2 FY25.
In contrast, during the same period, the company’s net profit decreased from Rs. 34.8 crores to Rs. 0.5 crores, representing a decline of around 98.6 percent YoY.
Stock Performance:
The stock has delivered positive returns of nearly 22 percent in one year, as well as around 10.7 percent returns in the last six months. So far in 2024, the shares of Suprajit Engineering have given positive returns of about 11 percent.
About the company:
Suprajit Engineering Limited is engaged in the business of manufacturing auto components consisting mainly of control cables, speedo cables, auto lamps and other components for automobiles and serves both domestic and international markets.
The company is India’s largest automotive cable and halogen bulb maker with an annual global capacity of 400 Million cables and 110 Million halogen bulbs. It holds the 2nd position globally in Control Cables and the 3rd position in Halogen Lamps.
Written by Shivani Singh
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