The largest Commerical air-conditioned(AC) Manufacturer Shares locked 20 percent upper circuit on Tuesday’s first half of the session from the previous close price of Rs 362. The Shares of Subros Ltd rose after Road Transport and Highways Minister Nitin Gadkari stated that air-conditioned truck cabins will soon be mandatory.
According to an Economic Times report, Union Road Transport Minister Nitin Gadkari announced at an event hosted by Mahindra Logistics Ltd that air-conditioned cabins will be made mandatory for all trucks from 2025. At 9:20 am, the stock reached its highest level in 52 weeks, touching the circuit at Rs 434.10.
Subros Limited was incorporated in 1985. The company manufactures and supplies auto air conditioning products to all major automakers in the passenger and commercial vehicle space. As of FY23, Company has a Market share of 40% in Passenger Car AC and 45% in Truck Aircon/Blower.
The stock climbed by 35.76 percent in the last six months from Rs 319.75 to current levels, while it grew by 50.13 percent in the previous year from Rs 289.15 to current values.
As per financials, Operating revenue increased by 14 percent from Rs 654 crore in Q3 to Rs 748 crore in Q4. Similarly, net profit increased by 125 percent from Rs 8 crore to Rs 18 crore.
Revenue climbed 25 percent year on year, from Rs 2,238 crores in FY 21-22 to Rs 2,806 crores in FY 22-23. During the same time period, the Net Profit improved by 47 percent, from Rs 32 crores to Rs 47 crores.
Profitability ratios are improving, for fiscal year 2023, ROE is 5.52 percent, ROCE is 8.39 percent, and the debt-to-equity ratio is 0.02.
As per the latest shareholding pattern, promoters of the company hold a 36.79 percent stake, and Foreign Institutional Investors (FIIs) hold 32.62 domestic institutional investors(DIIs) hold a 13.3 percent stake in the company for FY 22-23.
Written by Omkar C
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