Moneycontrol Be a Pro
Get App
Last Updated : Aug 19, 2019 01:50 PM IST | Source: Moneycontrol.com

Buy Subros; target of Rs 260: Dolat Capital

Dolat Capital is bullish on Subros has recommended buy rating on the stock with a target price of Rs 260 in its research report dated August 13, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital's research report on Subros


Subros 1QFY20, revenue beat estimate to ` 5.7bn (+7% YoY) led by wining new business (HVAC for new Wagon R and AC kit for Renault Nissan for Brazil facility) and incremental revenue from Home AC business (` 620mn). EBIDTA margin contracted by 111bpsYoY to 9.6 % on account of weaker product mix (low margin in home AC). Despite the slowdown in PVs segment Subros’ core PV AC business managed to grew in single digit in 1Q led by shift in demand towards petrol variants plus rising wallet share in key OEMs. Moreover, traction in home AC segment (led by increasing localization and increased demand from online players) is mitigating the impact of slowdown in Automotive sales. The net debt reduced to ` 2bn in 1QFY20, from ` 3.6bn in FY18, which will aid profitability in FY20/21.


Outlook


We recommend Buy, with a TP ` 260 (based on 18x FY21E EPS).


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.
First Published on Aug 19, 2019 01:50 pm
Loading...
Follow us on
Available On