Dolat Capital is bullish on Subros has recommended Buy rating on the stock with a target price of Rs 323 in its research report dated May 22, 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).
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).
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