10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Thursday, December 8, 2011

Subros Ltd:-Buy/sell/growth prospects and recommendation,news and results,target and analysis,view and outlook,multibagger

Scripscan:Subros Ltd

Story:Subros Limited engages in the manufacture and sale of automotive air conditioning systems, and parts and components in India. It offers compressors, condensers, evaporators, blowers, heaters, and tubes and hoses.Subros reported modest 7.8% yoy (down 16.9% qoq) growth in its net sales to Rs252cr for 1QFY2012. Top-line growth was driven by 7.3% yoy (3.2% qoq) growth in average net realisation, as volumes remained flat. Realisation improved due to price hikes and change in product mix. On a sequential basis, volumes declined steeply by 19.5%, in-line with the volume decline in the passenger car industry. Operating margin registered an 84bp yoy (99bp qoq) expansion on account of a 393bp yoy fall in raw-material cost. Local production of evaporators as an import substitute also resulted in cost reduction to a certain extent. However, other expenditure increased by 221bp yoy, restricting further margin improvement. As a result, net profit grew by 12.5% yoy (down 26.9% qoq) to Rs8cr. The significant increase in interest cost (up 61.6% yoy to Rs6cr), however, arrested further bottom-line growth.However Net profit of Subros declined 35.93% to Rs 3.12 crore in the quarter ended September 2011 as against Rs 4.87 crore during the previous quarter ended September 2010. Sales declined 13.55% to Rs 240.49 crore in the quarter ended September 2011 as against Rs 278.19 crore during the previous quarter ended September 2010.After the latest dismal 2nd quarter result,I estimate Subros to register a CAGR of 8% in volumes over FY2011–13E, leading to a ~10% CAGR in revenue.I expect the company’s margin to improve marginally on account of localisation of products such as evaporators and heater core. However, bottom-line growth will be restricted due to increased interest cost. At Rs 23, the stock is trading at 5x FY2013E earnings.Keep holding the stock.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner