Subros Q3 Results Review - Positives Priced In: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Subros Ltd.'s printed a decent set of numbers in Q3. Revenue de-grew 9.9% QoQ due to fall in production in private vehicle. Despite negative operating leverage the company was able maintain Ebitda margin above 8% due to expansion in gross margin. Management expresses its confidence to attain a double digit margin in FY25.In the private vehicle segment, the company outperformed industry growth due to model mix (12% growth in Q3 versus industry growth of 5%). Increase in market share in SUV by Maruti Suzuki India Ltd,, new business from Mahindra & Mahindra Ltd. and other original equipment manufacturer would be key catalysts for Subros PVs AC growth. Government's recent announcement to make ACs mandatory in CVs from January 2025 will create a market opportunity for Rs 4-4.50 billion from FY26.Most of the positives have been already priced in, stock is trading at 32/25 times of FY25E/26E earning per share, which looks expensive.Recommend Sell with target price of Rs 634 (based on 22 times FY26 EPS)..Click on the attachment to read the full report:.Vodafone To Prioritise Clearing Vendor Dues, 5G Launch Plans In Six Months.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Subros Q3 Results Review - Positives Priced In: Dolat Capital

Revenue outlook remains positive fueled by strong order backlog in PVs and increasing product mix for EV segment.

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Subros Q3 Results Review - Positives Priced In: Dolat Capital

Revenue outlook remains positive fueled by strong order backlog in PVs and increasing product mix for EV segment.

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