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Buy Subros; target of Rs 323: Dolat Capital

May 24
03:24 2019

Dolat Capital’s research report on Subros

Subros posted muted results in 4QFY19, as it was affected by the slowdown in the PV segment. Revenue/EBITDA declined 6/14% YoY, respectively. EBITDA margin was 10.6% (-92/-52bps YoY/QoQ), due to a weaker product mix and a negative operating leverage. The management has guided for a 5-7% growth in the PV AC business and an overall growth of 10-11% in FY20. The net debt reduced to ` 1.5bn in FY19, from ` 3.6bn in FY18, which will aid profitability in FY20/21. We recommend Buy, with a TP ` 323 (based on 21x E EPS).

Outlook

The net debt reduced to ` 1.5bn in FY19, from ` 3.6bn in FY18, which will aid profitability in FY20/21. We recommend Buy, with a TP ` 323 (based on 21x E EPS).

For all recommendations report, click here

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