Multibagger Stock which is a market leader in automobile air conditioning jumped 9 percent in the day’s trade following the release of its Q3FY24 results with a 225 percent jump in Net Profits YoY.
At 2:47 p.m the shares of Subros Limited were trading at Rs. 712.70, up 7.35 percent from its previous day’s close price of Rs. 663.90 and its market capitalization is Rs. 4,626 Crores.
Its revenue from operations grew by 11.89 percent YoY from Rs. 654.6 Crores in Q3FY23 to Rs. 732.48 Crores in Q3FY24 and it declined 9.94 percent QoQ from Rs. 813.37 Crores in Q2FY24 to Rs. 732.48 Crores in Q3FY24.
Its Net Profit grew by 225.18 percent YoY from Rs. 8.26 Crores in Q3FY23 to Rs. 26.86 Crores in Q3FY24 and it grew 0.37 percent QoQ from Rs. 26.76 Crores in Q2FY24 to Rs. 26.86 Crores in Q3FY24.
In addition to this the Transport Minister of India Shri Nitin Gadkari along with the Ministry of Road Transport and Highways, Government of India vide notification dated 8th December 2023 has amended the central motor vehicles rules, 1989.
The new notification mandates that the vehicles manufactured on or after 1st October 2025 shall be fitted with an air-conditioning system for cabins of N2 category ( 3.5 tonnes and above but less than 7.5 tonnes Gross vehicle weight) and N3 category ( 7.5 tonnes and above gross vehicle weight).
Subros will benefit from the above statement as it is the market leader in the air conditioning of automobile vehicles with a market share of 42 percent in passenger car AC and a 51 percent market share in Truck Aircon/Blower, with key customers like Maruti Suzuki, Denso, Force Motors, Tata, Mahindra, SML Isuzu, Ashok Leyland, and many more
Subros Limited was formed as a joint venture between the Suri family of India, Denso Corporation, and Suzuki Motor Corporation, Japan. It is the leading manufacturer of thermal products for automotive applications in India, it is the only integrated manufacturer of auto air conditioning systems and thermal products.
It has reported a return on equity (ROE) of 5.60 percent and a return on capital employed (ROCE) of 8.82 percent, it is making decent returns on its equity and capital employed, as it is not making inconsistent net profits and revenue.
According to the latest shareholding data available for the December 2023 quarter, the company’s Promoters hold 36.79 percent stake, the Domestic Institutional Investors hold 9.48 percent and the Foreign Institutional Investors (FII) hold 33.35 percent.
Written by: Bharath K.S
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