Subros Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Subros Ltd is navigating a complex operating environment marked by rising costs and geopolitical challenges, yet management's strategic focus on diversification into high-growth segments such as commercial vehicle AC and EV thermal systems is pivotal for future revenue growth. The company's commitment to operational excellence through automation and localization aims to mitigate margin pressures, while significant investments in capacity expansion, particularly in the Kharkhoda and Karsanpura projects, are expected to enhance its competitive position. Vista's financial outlook anticipates stable revenue growth and margins, supported by the company's proactive measures and the favorable regulatory landscape for electric vehicles. However, headwinds from rising raw material costs and geopolitical tensions could impact profitability. Over the next 12-24 months, key opportunities include capturing market share in the truck AC segment and leveraging government incentives for EV components, while watchpoints include customer concentration risks and ongoing supply chain disruptions
Why We Like This Stock
- Management's focus on diversifying into high-growth segments like commercial vehicle AC and EV thermal systems is expected to drive future revenue growth
- Significant investments in capacity expansion projects are likely to enhance Subros' competitive position and operational efficiency
- The favorable regulatory environment for electric vehicles presents substantial market opportunities for Subros
Things To Watch Out For
- Rising raw material costs and geopolitical tensions pose risks to profit margins and operational stability
- High customer concentration, with the top two customers accounting for ~85% of revenue, presents a significant risk to revenue stability
- Ongoing supply chain disruptions could impact production and delivery timelines, affecting overall performance
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,071 | 3,368 | 3,756 | 4,004 | 4,326 |
| Profit Before Tax (Cr.) | 140 | 201 | 228 | 231 | 253 |
| PBT Margin | 4.5% | 6.0% | 6.1% | 5.8% | 5.8% |
| Net Profit (Cr.) | 115 | 139 | 164 | 165 | 180 |
| Earnings Per Share | 17.6 | 21.3 | 25.1 | 25.3 | 27.7 |
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 and internationally. The company offers compressors, HVAC, radiators, condensers, evaporators, heaters, tubes and hoses, bus and rail AC kit, transport and commercial cooling solutions. The company was incorporated in 1985 and is headquartered in New Delhi, India.