Subros Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Subros Ltd is strategically positioned to leverage the evolving automotive landscape, particularly with the upcoming mandate for AC cabins in trucks, which could significantly enhance its market share and revenue per vehicle. Management's focus on expanding thermal management solutions for electric vehicles (EVs) is expected to drive substantial growth, with alternative fuel products already contributing 20% to turnover. The company's planned capital expenditure of Rs. 270 crore for FY25, including a new greenfield plant, underscores its commitment to diversifying beyond its current reliance on passenger vehicles. Despite these positive developments, challenges such as high customer concentration and rising commodity prices may pressure margins. Vista's financial outlook reflects stable revenue growth and margins, supported by these strategic initiatives. The automotive ancillary sector is experiencing a favorable macro environment, with strong demand and improving pricing power, although geopolitical tensions could impact commodity costs. Over the next 12-24 months, key opportunities include the full impact of the truck AC mandate and the ramp-up of new production facilities, while watchpoints include commodity price volatility and customer concentration risks
Why We Like This Stock
- Upcoming truck AC mandate expected to significantly increase market share and revenue per vehicle
- Strategic investments in EV thermal management solutions poised to enhance long-term growth potential
- Expansion of production capacity through new facilities to support diversification and emerging market demands
Things To Watch Out For
- High customer concentration, with top two customers accounting for ~85% of revenue, poses a risk to stability
- Rising commodity prices and geopolitical tensions may pressure margins and operational costs
- Operational cash flow impacted by global supply chain issues and shifts in credit terms, affecting liquidity
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,071 | 3,368 | 3,756 | 4,007 | 4,379 |
| Profit Before Tax (Cr.) | 140 | 201 | 228 | 232 | 257 |
| PBT Margin | 4.5% | 6.0% | 607.2% | 5.8% | 5.9% |
| Net Profit (Cr.) | 115 | 139 | 164 | 166 | 183 |
| Earnings Per Share | 17.6 | 21.3 | 25.1 | 25.4 | 28.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Moneycontrol | ► Equalweight | — | 20-May-2026 |
Company Overview
Show Company Profile
Subros Limited engages in the manufacture and sale of thermal products for automotive applications in India. The company offers compressors; automotive condensers; heating, ventilating, and air conditioning systems, such as heaters, evaporators, and blower units; tubes and hoses; bus AC; driver cabin AC for railway engines; commercial and residential AC; transport refrigeration systems; truck cabin AC systems; and off-roader AC systems. It also exports its products. The company was incorporated in 1985 and is headquartered in New Delhi, India.