SPRL || Consistently Performing Stocks #15
What has led to the consistency?
The aim of this series is to identify consistently performing businesses and understand a little bit more about how they are able to achieve this consistency.
Before we get into today’s stock, let me set some context regarding my research objectives. I do a weekly exercise to study and learn the business of one stock as part of my research activities as a SEBI registered RA. The primary objective is to understand the business a little bit more, figure out the key growth drivers and identify broader industry trends & patterns. Most of the research below is knowledge derived from the past Annual Reports and recent Quarterly Investor presentations. I am not an expert in this domain or industry. And more importantly, this is not a recommendation to buy the stock nor a thesis for a multibagger opportunity.
Let’s start ⬇️
Today, we will look at the key fundamentals & business of Shriram Pistons & Rings Ltd.
What Has Led to This Consistency
Company Overview
Shriram Pistons & Rings Limited (SPRL), established in 1972, stands as India's leading manufacturer of critical engine components, including pistons, piston pins, piston rings, and engine valves.
The company operates through a B2B model, supplying to major automotive OEMs, the replacement/aftermarket, and global customers across 45+ countries.
With nine manufacturing facilities (including six under subsidiaries) and a state-of-the-art R&D center recognized by DSIR, SPRL has established itself as a dominant player in the auto components sector.
Market Leadership
SPRL stands as the leading manufacturer and exporter of engine components in India, with a dominant position in its core product categories.
The company is recognized as the #1 exporter of pistons, piston rings, pins, and engine valves from India, with products reaching over 45 countries across 5 continents.
The company maintains long-term supply relationships with major OEMs both domestically and internationally.
Its assembly units across India ensure timely delivery and responsive service to key customers. With a strong distribution network of over 1,200 business partners, SPRL commands significant market presence in both the OEM and aftermarket segments.
Technology Partnerships
SPRL has maintained strategic technology partnerships with global industry leaders that span decades.
These include collaborations with
Kolbenschmidt (Germany) since 1972 for pistons
Riken Corporation (Japan) since 1978 for rings
Honda Foundry (Japan) since 1989 for pistons
and Fuji Oozx (Japan) since 1993 for engine valves.
These partnerships provide SPRL with access to cutting-edge technologies and global best practices, allowing the company to maintain technological leadership in its product categories.
Manufacturing Excellence
The company operates 3 manufacturing plants under SPRL and 6 facilities through its subsidiaries, with capacity for producing critical engine components at scale.
Its state-of-the-art facilities in Ghaziabad, Pathredi, and Bulandshahr Road are equipped with modern manufacturing equipment and processes.
SPRL has consistently received industry recognition for manufacturing excellence, including the TPM Excellence Award from Japan Institute of Plant Maintenance (JIPM), reinforcing its commitment to operational efficiency.
Revenue Diversity
SPRL's revenue portfolio is strategically balanced across four segments:
52% from OEMs
26% from aftermarket
17% from exports
and 5% from non-automotive applications.
The aftermarket segment generates stable, higher-margin recurring revenue through the SPR and USHA brands, providing resilience during economic downturns as vehicle maintenance remains essential regardless of new vehicle sales.
The company serves diverse end-markets including manufacturing, infrastructure, real estate, and agriculture.
Geographically, exports span Europe, South America, Middle East, North America, Asia Pacific, and Africa, creating further insulation against regional economic fluctuations.
Innovation Focus
SPRL invests significantly in research and development through its DSIR-recognized R&D facility.
The company has filed for multiple patents, with 36 patents in total (12 granted, 24 filed), demonstrating its commitment to innovation.
This R&D focus has enabled SPRL to develop components that meet increasingly stringent emission norms and prepare for the evolution of vehicle technologies, including hybrid and electric vehicles through subsidiaries.
Strategic Diversification
The below acquisitions enable SPRL to adapt to evolving automotive technologies.
SPR EMF Innovations provides entry into the electric vehicle market through motors and controllers, positioning SPRL for the industry's electrification trend.
SPR Takahata Precision India expands SPRL's capabilities in high-precision plastic components that are replacing metal parts in modern vehicles.
SPR TGPEL Precision Engineering adds expertise in high-precision molds and injection molded components for automotive and non-automotive applications.
Karna Intertech strengthens SPRL's tool manufacturing capabilities with expertise in gravity die casting molds used in the company's core piston business.
Global Reach
SPRL balances global reach (over 45 countries across 5 continents) with local expertise.
This means that while the company exports its products worldwide, it also understands and adapts to the unique requirements, regulations, and market preferences of each region it serves.
The company exports to Europe, South America, Middle East, North America, and Asia Pacific, serving as the #1 exporter of pistons, piston rings, pins, and engine valves from India.
By combining its broad international footprint with detailed knowledge of local markets, SPRL provides customized solutions that meet specific customer needs effectively.
Consistency Formula
Leadership + Quality → Market Dominance
Technology Partnerships + Innovation Focus → Product Excellence
Revenue Diversity + Global Reach → Business Resilience
Manufacturing Excellence → Operational Strength
That’s it for today. Every week, I will pick one consistently performing stock and share a little bit more about their business for learning purposes. Do subcribe if you wish to receive it in your Inbox every Saturday.
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Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes to understand more about the business. It does not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.
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