INTRODUCTION
Suprajit Group comprises of Suprajit Engineering Limited, Suprajit Automotive
Limited, Suprajit Europe Limited, and Phoenix Lamps Limited. The group is a global
leader in the automotive cable and halogen bulb industry. With the most competitive
manufacturing base in India, and its technical and logistical supports worldwide, the
group provides the optimal product development and manufacturing solutions to its
domestic and international customers.
Link to financial information-
1. https://www.equitymaster.com/stock-research/financial-
data/SENGG/SUPRAJIT-ENGINEERING-LTD-Detailed-Share-Analysis
2. https://www.moneycontrol.com/financials/suprajitengineering/balance-
sheet/se15
Income statement of suprajit engineering
Based on the above information from the given link various graphs can be
prepared with regard to sales , profitability & liquidity of Suprajit engineering.
1. Sales of the Suprajit engineering over the last 10 years
GRAPH
INTREPRETATION
From the above given information of sales for last 10 year line graph can be
prepared.
A line graph (also known as a line plot or line chart) is a graph which
uses lines to connect individual data points that display quantitative values
over a specified time interval. Line graphs use data point "markers" that are
connected by straight lines to aid in visualization.
This line graph clearly depicts the sales over the last 10 years in which 2010
sales was around 2485 million which increased constantly to 2019 in which
sales reached to Rs 15899 million that clearly means that over the past 10
years sales increased by Rs 13414 million .
When it comes to % increase (3450-2485)/2485* 100= 38% in 2011 while in
2012 (4210-3450)/3450*100=22% similarly for 2013=8%,2014=17%,
2015=13%, 2016=55%, 2017=26%, 2018=18.9% , 2019=11%.
Therefore from the above calculation it is clear that sales increase was
maximum in 2016 that is 55 % while least sales increase was in 2013 that is
8%
From the graph we can clearly visualize that there is almost constant
increase in sales from 2010 t0 2015 however after 2015 there is better and
more positive increase from the past 5 years.
FORECAST
From the above data forecast for 2020 can be done, from the past 10 year
visualization graph it is forecasted that sale of 2020 will be Rs18567 million.
2. Profit
GRAPH
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From the above profit information of Suprajit engineering in 2015 the profit was
503 million, 2016=803 million,2017=1138 million,2018=1385 million,2019=1338
million.
The most appropriate way to represent the profit over the 5 years is through the
bar graph.
A bar chart or bar graph is a chart or graph that presents categorical data with
rectangular bars with heights or lengths proportional to the values that they
represent. The bars can be plotted vertically or horizontally. A vertical bar chart is
sometimes called a column chart.
Above presented graph is vertical bar graph, on the above bar graph x axis
represents net profit after tax while y axis represents the years from 2015 to 2019.
The tallest vertical bar above is of 2018 I.e., 1385 million while the lowest vertical
bar is of 2015 i.e., 503 million. The second tallest vertical bar that represent
second highest profit earning period of 2016.
From the above graph it is clear that from 2015 to 2018 the profit has been
increasing constantly while in 2019 it declined.
3.LIQUIDITY for past 5 years
GRAPH
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Liquidity ratio that will give you the ability to understand how equipped the
business is to pay your most critical obligations in the short-term, often within a 6
or 12-month period.
Presented in the form of two visual ratio calculations for swift access to your
overall liquidity health or performance as well as a bar chart & line chart i.e., dual
combination graph to help you compare data and spot trends, this financial chart
will ensure that you will be able to meet obligations, commit to payments, and
quash detrimental roadblocks before they unfold.
In the above graph pink colour bar graph represents current ratio while orange
colour line graph represents quick ratio.
From the above graph of current ratio it is clear that there is no fixed trend
however initially that is on 2015 it was around 1.79 :1 which declined minimum to
1.36:1 on 2017 & again increased to 1.66:1 on 2019 therefore it is clear that
Current ratio is a useful test of the short-term-debt paying ability of any business.
In case of quick ratio again there is no fixed trend however initially that is on 2015
it was around 1.34 :1 which declined minimum to 0.98:1 on 2017 & again
increased to 1.32:1 on 2019 therefore it is clear that company that enough cash
and cash equivalents, marketable securities, and short-term receivables that can
be converted very easily into cash.
4. PROFITABILITY
GRAPH
INTREPRETATION
A line graph is mostly used to show change over time as a series of data points
connected by line segments on the coordinate plane. The line graph therefore
helps to find the relationship between two or more data sets, with one data set
always being dependent on the other two set.
Line graphs are drawn such that the independent data values are on the x-axis
and the dependent data values are on the y-axis. Line graphs are used to track
changes over short and long periods of time or some independent variable.
The return on assets ratio measures how effectively a company can earn
a return on its investment in assets. In other words, ROA shows how efficiently a
company can convert the money used to purchase assets into net income or
profits. A positive ROA ratio usually indicates an upward profit trend as well.
From the graph the colour nearer to brown represents ratio near to 17.3 and blue
colour represents ratio near to 21.7 lastly the colour between these two colour
represents the ratio between these two figures.
Therefore in this case in 2015 it was 20.9% which declined to 17.3% in 2019 that
me compared to last 2 years if seen in graph there is decline in return on assets
which means comparatively now company can return less return on assets (top
line graph).
The return on equity ratio or ROE is a profitability ratio that measures the ability of
a firm to generate profits from its shareholders investments in the company.
Therefore in this case in 2015 it was 12.6 % which declined in 2016 however
increased in next 2 years to 12.7% then again declined in current year that is 2019
10.9% which means that comparatively company now has less ability to generate
profits from investor’s investments.
COMPETITOR
The two competitor of suprajit engineering are Munjal showa & Banco products.
INTRODUCTION
Munjal showa- Established in 1985, in technical and financial collaboration with
Showa Corporation of Japan, the pioneering global leaders in the manufacture of
shock absorbers; Munjal Showa Limited is a member of Hero Group, a US $ 1.3
billion manufacturing conglomerate, with a 45-year history. The Hero Group, a
major player in the manufacturing sector in India, comprises of 15 active
companies with complete backward integration for automotive manufacturing.
Prime companies in the Group are: Hero Honda Motors Limited, a joint venture
with Honda Motors of Japan, Hero Cycles, the largest bicycle manufacturer in the
world, Majestic Auto Limited and Hero Puch, manufacturing mopeds and scooters.
Banco products-Born of entrepreneurial spirit in 1961, Banco Products (India)
Ltd. has today carved a niche for itself as a leader in the business of engine
cooling and sealing systems both for automative & industrial applications.The
portfolio includes engine cooling systems & engine sealing systems.
Source:- http://www.bancoindia.com/about-us/
https://www.munjalshowa.net/about-us/company-profile/
COMPARATIVE STUDY OF SUPRAJIT ENGINEERING WITH COMPETITORS
1. SALES
GRAPH
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Here B.P means Banco products represented by colour red , M.S means Munjal
showa represented by colour yellow while S.E means suprajit engineering
represented by green color.
The best way to represent the above sales data of different companies is side by
side bars the tallest vertical point of suprajit engineering is on current year that is
on 2019 while for Banco product & Munjal showa is also on current year that is on
2019.
However from the above graph we came to conclusion that for suprajit engineering
there is increase from Rs 6118 million to Rs 15899 million while for Banco
products it is from Rs 11288 million to Rs 15666 million & for Munjal showa is from
Rs 16430 million to Rs 16693 million.
If we see the bar graph of Munjal Showa Company after 2015 there is continuous
decline for 3 years then again increased to Rs 16693 million in 2019 that is good
for the company.
While in case of Banco products there is continuous minimal increase in sales
from 2015 to 2019 that is Rs11288 million to Rs15666 million that shows growth
for the company .
Lastly in case of surajit the growth compared to competitors are pretty good
because there is sharp increase from Rs6118 to Rs15899 million in past 5 years.
2. PROFIT
GRAPH (for last 5 years )
GRAPH (current year)
INTREPRETATION
Here B.P means Banco products represented by colour blue, M.S means Munjal
showa represented by colour orange while S.E means suprajit engineering
represented by green colour.
The best way to represent the above sales data of different companies is side by
side bars the tallest vertical point of suprajit engineering is on current year that is
on 2019 Rs 1338 million while for Banco product & Munjal showa is not on current
year.
However from the above graph we came to conclusion that for suprajit engineering
there is increase from Rs 503 million to Rs 1338 million while for Banco products
there is no continual increase as there is increase from Rs 877 million to Rs 1140
in 2018 and for the current year there is decrease to Rs 833.
For Munjal showa there is no trend as there is no clear pattern in last 5 years.
However in 2019 suprajit engineering is having highest profit.
3. LIQUIDITY
GRAPH
INTREPRETATION
In order to know the liquidity of the companies the best measure is the liquidity
ratio here I have taken the current ratio for the measure how equipped the
business is to pay your most critical obligations in the short-term, often within a 6
or 12-month period.
In case of Banco products the tallest bar is in year of 2017 while in 2019 it is 3.1
that means current assets are approximately 3 times more than the current
liabilities, In case of Munjal showa the tallest bar is again in year of 2017 while in
2019 it is 3 that means current assets are 3 times more than the current liabilities
taking consideration of suprajit engineering over the last 5 years the ratio are close
to ideal ratio i.e.,2:1 but not more than or exactly the ideal ratio that means current
assets are more than current liabilities but not upto the mark
4. PROFITABILITY
(a) Return on assets
GRAPH
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Return on assets
The ROA is the net income from the firms most recent income statement, divided
by the total assets at the end of the period. An alternative calculation uses the
average total assets, where we compute the average value of assets between the
start and end of the year.
Looking at the graph here I have use the line graph,
Graph 1: comparison between suprajit engineering & banco products
In this graph red colour is of suprajit engineering & blue colour is of banco
products,
From this graph it is clear that return on assets is always lower for banco products
over last 5 years so the position of suprajit engineering is better.
The highest point for suprajit engineering in this graph is in year 2018 that is 12.7
which declined in current year while for banco products highest point in this graph
is in year 2015 that is 11.7 which declined in current year to7.2 ratio.
Graph 2: comparison between suprajit engineering & munjal showa
In this graph red colour is of suprajit engineering & orange colour is of munjal
showa
From this graph it is clear that return on assets is always lower for munjal showa
over last 5 years so the position of suprajit engineering is better.
The highest point for suprajit engineering in this graph is in year 2018 that is 12.7
which declined in current year while for munjal showa highest point in this graph is
in year 2015 that is 13.1 which declined in current year to7.9
(b)Return on equity
GRAPH
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(ROE) is a measure of the profitability of the firm. It also depends on a firm's total
leverage, or debt level. For a given level of assets, the higher the liabilities (debt),
the lower the equity. And the lower the equity, the higher the return on equity
Looking at the graph here I have use the line graph,
Graph 1: comparison between Suprajit engineering & Munjal showa
In this graph red color is of suprajit engineering & dark pink color is of Munjal
showa
From this graph it is clear that return on equity is always lower for Munjal showa
over last 5 years so the position of suprajit engineering is better.
The highest point for suprajit engineering in this graph is in year 2017 that is 21.7
which declined in current year 17.3 while for Munjal showa highest point in this
graph is in year 2015 that is 18.4 which declined in current year to 10.3
Graph 2: comparision between Suprajit engineering & Banco products
In this graph pink color is of suprajit engineering & orange color is of Banco
products,
From this graph it is clear that return on equity is always lower for Banco products
over last 5 years so the position of suprajit engineering is better.
The highest point for suprajit engineering in this graph is in year 2017 that is
21.7 which declined in current year 17.3 while for Banco products highest point
in this graph is in year 2015 & 2018 that is 14.1 which declined in current year
to 10.3
Based on comparisons suprajit engineering is giving good return on
investments for investors.
The END
Thank you
