In Friday’s trading session, the shares of one of the leading Auto ancillary stocks specialized manufacturing of automotive air conditioning and thermal management solutions, are in focus after trading at a discount of more than 30 percent from 52 week high.
Price action
With a market capitalization of 4,175.41 Crores on Friday, the shares of Subros Limited were trading at Rs 619.80 per share, a drop of 3.16 percent making a high of Rs 653.20 compared to its previous closing price of Rs 640.05.
What happened
Subros Limited, one of the leading Auto ancillary stocks specialized manufacturing of automotive air conditioning and thermal management solutions.
The company hit its 52-week or all-time high in August 2024 at Rs. 825 and, comparing the same with the current stock price prevailing in the market, there is a discount of approximately 30 percent.
About the company
Subros Ltd. is recognized as a market leader in the automotive air conditioning sector in India specialising in designing, manufacturing, and supplying HVAC (Heating, Ventilation, and Air Conditioning) systems, components, and related products for the automotive industry.
The company holds a 42% market share in the passenger car AC segment and a 51% market share in the truck air conditioning and blower segment.
Subros Limited serves major automobile manufacturers, including Maruti Suzuki, Tata Motors, and Honda, with a wide range of products such as compressors, condensers, and evaporators. They operate through several manufacturing plants and a robust distribution network across the country .
Future outlook
Subros Limited focuses on sustainability by developing eco-friendly products, reducing waste and emissions, and continuing investment in R&D to enhance energy efficiency, reduce emissions, and improve performance. The company is also exploring market expansion and diversification to reduce reliance on single markets or segments.
Shareholding Pattern
Subros Ltd has a diversified shareholding pattern, where Promoters hold 36.79 percent of the shares, Foreign Institutional Investors (FIIs) own 33.05 percent, Domestic Institutional Investors (DIIs) hold 10.67 percent and the Public holds 19.49 percent.
Financials
The company’s revenue rose by 2.26 percent from Rs 816.08 crore to Rs 834.59 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs 26.76 crores to Rs 36.42 crore during the same period.
Key Financial ratios
Subros Limited has an Return on Equity (RoE) of 12.68 percent and a Return on Capital Employed (RoCE) of 18.2 percent. Furthermore, the company’s debt-to-equity ratio is 0.02.
Written by Sridhar J
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