Market Performance
Suprajit Engineering’s stock found its footing after a volatile start. Shares, which initially dipped in early trade, bounced back and moved higher by over 0.5%, in line with the broader auto sector rally.
But the bigger picture tells a different story:
- 1-month performance: Down 3.5%
- YTD performance: Lower by 5.6%
- Market capitalisation: Over ₹6,200 crore
Despite recent weakness, the company’s resilience in handling external challenges is keeping investor sentiment steady.
Main News – Impact of US Tariffs
The key development revolves around the 25% US tariff on Indian imports. While at first glance it sounds like a major setback, Suprajit Engineering has assessed the situation carefully and expects minimal impact.
- Out of its export portfolio, only a small portion faces tariff exposure.
- The estimated hit stands at around $0.5 million, which the company plans to offset by engaging with customers.
- Suprajit is actively discussing full relief from buyers, signaling strong confidence in managing the tariff headwinds.
The company has also worked with customs consultants in the US to validate its assessment, showing its proactive stance in navigating global trade disruptions.
Company Details
Suprajit Engineering is a leading player in the auto ancillary space, supplying cables, halogen lamps, and other components to some of the biggest automotive names. Its clientele includes:
- Bajaj Auto
- Hero MotoCorp
- TVS Motor
- Piaggio Vehicles
- BMW
- Volkswagen
- Mahindra & Mahindra
On the global front, the company has significant exposure to the US market, estimated at $100–110 million. Importantly:
- Around 70% of exports are compliant with the United States-Mexico-Canada Agreement (USMCA).
- This compliance means most of its products qualify as North American-origin, reducing the immediate risk of additional duties.
As of Q1FY26, Suprajit confirmed that no tariff-related impact had been recorded.
Voices from the Management
While the tariff situation adds short-term challenges, the leadership at Suprajit is approaching it strategically:
- The company is working with customers to share the burden, with over 30% already agreeing to accept the increased tariffs.
- Management believes that in the medium to long term, the tariff issue could actually strengthen Suprajit’s position compared to competitors.
This confidence stems from strong customer relationships and a diversified export base.
Summary
To sum it up, Suprajit Engineering finds itself at the intersection of global trade uncertainties and domestic market pressure. Yet, the company’s proactive steps—working with consultants, negotiating with customers, and leveraging USMCA compliance—are helping it limit the impact.
- Tariff exposure: ~$0.5 million (manageable)
- US market exposure: $100–110 million
- Shares today: Higher by 0.5% despite early volatility
- 1M / YTD performance: -3.5% / -5.6%
- Market cap: ₹6,200+ crore
While investors keep a close watch, the company’s strategy of turning challenges into opportunities is what stands out.
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