Subros: bright outlook with attractive valuations
We have identified Subros as one of our picks from the auto ancillary space as there has been V-shaped recovery in PV segment
November 20, 2020 / 12:50 PM IST
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
For automobile companies, especially those in the passenger segment (cars and two-wheelers), the pandemic has come with a silver lining. The demand for vehicles in these segments has witnessed a V-shaped recovery fuelled by people’s preference for personal vehicles as they fear taking public transport because of the perceived risk of getting infected.
In light of this, we have identified Subros Ltd (CMP: Rs293.8, Mcap: Rs1,919 crore) as one of our picks from the auto ancillary space. It is engaged...