Subros’ leadership in the autocomponent space is driven by the quality of products and the product portfolio
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
A sharp recovery in the passenger vehicle (PV) segment, post the second wave of COVID-19, has led Subros Ltd (CMP: Rs 356; M Cap: Rs 2,320 crore), manufacturer of auto air conditioning systems, to post a decent performance in Q2FY22. Its revenues saw a double-digit growth. However, a significant rise in raw material costs impacted the operating profitability. Though concerns on the availability of semiconductor chips remain and original equipment manufacturers (OEMs) are cutting down production and raw material costs are…
