Established in 1985 as a collaborative endeavor between the esteemed Suri family of India, Denso Corporation of Japan, and Suzuki Motor Corporation, Subros stands as a prominent player in the automotive industry. With the Suri family holding a significant 36.79% ownership, accompanied by Denso Corporation’s 20% stake and Suzuki Motor Corporation’s 11.96% ownership, the company operates as a public limited entity. Specializing in the manufacturing and supply of auto air conditioning products, Subros caters to major automakers in both the passenger and commercial vehicle segments. The company’s prowess in this niche is further enhanced through its technical collaboration with Denso Corporation.
In this comprehensive article, we delve into the various facets of Subros Limited, exploring its history, collaborations, and significant contributions to the ever-evolving automotive landscape.
About Subros
Established in 1985, Subros has solidified its position as the largest air conditioning and thermal products company in India through a strategic joint venture involving Subros (36.79%), Denso (20%), and Suzuki (11.96%). With an impressive market leadership, Subros commands a substantial 42% share in the passenger car air conditioning sector and a formidable 51% in the truck aircon/blower segment. The company’s diverse product portfolio spans across various vehicle categories, including cars, buses, refrigeration vehicles, railways, tractors, and trucks.
Subros is recognized for manufacturing an extensive array of thermal cooling products, encompassing compressors, condensers, radiators, blowers, hoses, tubes, and more. This comprehensive product line showcases Subros’ commitment to delivering high-quality solutions that cater to the diverse needs of the automotive and transportation industries, solidifying its pivotal role in the Indian market.
Subros Q3 FY24 Financial Highlights
- Revenue Surge: Subros reported an impressive 11.9% YoY increase in revenue for Q3 FY24.
- Profit Soars: The company experienced a remarkable 225.18% YoY growth in profit during the same period.
- Quarterly Comparison: Despite a 9.95% decline in revenue compared to the previous quarter, the profit showed a modest increase of 0.37%.
- Expense Management: The decline in selling, general, and administrative expenses contributed to the improved financial performance, decreasing by 1.48% QoQ but increasing by 17.65% YoY.
- Operating Income Surge: Subros witnessed a significant 476.52% YoY increase in operating income, although it decreased by 24.59% QoQ.
- Earnings Per Share (EPS): Q3 FY24 EPS stood at ₹4.12, reflecting a substantial 226.98% YoY growth.
- Market Performance: Subros delivered notable returns in the stock market – 8.45% in the last week, 57.08% in the last 6 months, and 22.4% YTD.
- Market Capitalization: As of 2nd February 2024, Subros holds a market capitalization of ₹4326.76 Cr.
- Stock Range: The stock’s 52-week high and low are ₹733.75 and ₹271.05, respectively.
- Analyst Ratings: All 2 analysts covering Subros have given it a Strong Buy rating, aligning with the consensus recommendation as of 2nd February 2024.
Below are the trading platforms that you can use to purchase SUBROS shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| February 2024 | 707.40 | 615.13 |
| March 2024 | 721.84 | 627.68 |
| April 2024 | 700.81 | 609.40 |
| May 2024 | 690.46 | 600.40 |
| June 2024 | 715.31 | 622.01 |
| July 2024 | 708.16 | 615.79 |
| August 2024 | 736.49 | 640.42 |
| September 2024 | 765.94 | 666.04 |
| October 2024 | 750.93 | 652.98 |
| November 2024 | 773.45 | 672.57 |
| December 2024 | 792.79 | 689.38 |
In anticipation of Subros’ share price trajectory for 2024, analysts project a fluctuating pattern. Starting in February at a maximum of ₹707.40 and a minimum of ₹615.13, the price is expected to range between ₹615.13 and ₹792.79 by December 2024.
Notably, the current market price as of 3rd February 2024 stands at ₹655, presenting growth potential. With a market capitalization of ₹4,272 Cr., Subros exhibits a stock P/E of 50.0, a book value of ₹138, a modest dividend yield of 0.15%, and respectable financial metrics with an ROCE of 8.82% and ROE of 5.60%. The face value of the stock is ₹2.00, providing investors with comprehensive insights into Subros’ financial standing.
| When | Maximum Price | Minimum Price |
| January 2025 | 808.65 | 622.04 |
| February 2025 | 829.38 | 637.98 |
| March 2025 | 861.73 | 662.87 |
| April 2025 | 844.83 | 649.87 |
| May 2025 | 820.22 | 630.94 |
| June 2025 | 857.13 | 659.33 |
| July 2025 | 840.33 | 646.41 |
| August 2025 | 866.32 | 666.40 |
| September 2025 | 896.64 | 689.72 |
| October 2025 | 919.95 | 707.65 |
| November 2025 | 942.95 | 725.34 |
| December 2025 | 966.52 | 743.48 |
As Subros charts its potential share price trajectory for 2025, analysts foresee a dynamic pattern with substantial growth. From a maximum of ₹808.65 to a minimum of ₹622.04 in January, the year progresses with consistent increments, reaching a maximum of ₹966.52 and a minimum of ₹743.48 by December 2025. This optimistic outlook aligns with Subros’ notable presence in the Indian market, contributing to almost 100% of its revenue in FY22.
The company’s robust clientele, including Maruti Suzuki India Limited, Tata Motors Limited, Mahindra & Mahindra Limited, Renault Nissan Automotive India Pvt. Ltd, and Force Motors Limited, positions it strategically for potential growth and sustained market influence.
| When | Maximum Price | Minimum Price |
| January 2026 | 995.52 | 765.78 |
| February 2026 | 1,021.04 | 785.42 |
| March 2026 | 1,060.86 | 816.05 |
| April 2026 | 1,040.06 | 800.05 |
| May 2026 | 1,009.77 | 776.75 |
| June 2026 | 1,055.21 | 811.70 |
| July 2026 | 1,034.52 | 795.78 |
| August 2026 | 1,066.51 | 820.40 |
| September 2026 | 1,103.84 | 849.11 |
| October 2026 | 1,132.54 | 871.19 |
| November 2026 | 1,160.86 | 892.97 |
| December 2026 | 1,189.88 | 915.29 |
As Subros projects its share price potential for 2026, analysts anticipate robust growth throughout the year. Starting in January with a maximum of ₹995.52 and a minimum of ₹765.78, the share price is expected to reach its zenith at ₹1,189.88 with a minimum of ₹915.29 by December 2026. Subros’ strategic positioning is complemented by its widespread manufacturing facilities, consisting of seven plants across India, including two technical centers and a tool engineering center in Noida.
With expansion plans underway, Subros aims to enhance capacity at its Chennai plant to accommodate new model launches by OEMs, alongside expanding its presence in the coach AC segment. This comprehensive strategy positions Subros for continued success in the automotive air conditioning systems industry.
| When | Maximum Price | Minimum Price |
| January 2027 | 1,213.68 | 933.60 |
| February 2027 | 1,244.80 | 957.53 |
| March 2027 | 1,293.34 | 994.88 |
| April 2027 | 1,267.98 | 975.37 |
| May 2027 | 1,231.05 | 946.96 |
| June 2027 | 1,286.45 | 989.58 |
| July 2027 | 1,261.22 | 970.17 |
| August 2027 | 1,300.23 | 1,000.18 |
| September 2027 | 1,345.74 | 1,035.18 |
| October 2027 | 1,380.73 | 1,062.10 |
| November 2027 | 1,415.25 | 1,088.65 |
| December 2027 | 1,450.63 | 1,115.87 |
As Subros envisions its share price trajectory for 2027, analysts anticipate a steady climb throughout the year. Commencing in January with a maximum of ₹1,213.68 and a minimum of ₹933.60, the share price is projected to reach its zenith at ₹1,450.63 with a minimum of ₹1,115.87 by December 2027. Subros, known for its strategic focus on “Design in India” and “Manufacturing in India” in alignment with the “Make in India” movement, has dedicated significant efforts to research and development.
In FY22, the company allocated 1.1% of its revenue to R&D, emphasizing localization to mitigate logistic disruptions and foreign exchange volatility. Achieving a localization level above 80% in all products, Subros remains committed to introducing new technologies to the domestic market. Furthermore, the company’s recent achievement includes securing a new order from Indian Railways in December 2023, valued at approximately ₹25 crores, highlighting its continued growth and presence in the market.
| When | Maximum Price | Minimum Price |
| January 2028 | 1,479.64 | 1,138.18 |
| February 2028 | 1,517.58 | 1,167.37 |
| March 2028 | 1,576.77 | 1,212.90 |
| April 2028 | 1,545.85 | 1,189.11 |
| May 2028 | 1,500.82 | 1,154.48 |
| June 2028 | 1,568.36 | 1,206.43 |
| July 2028 | 1,537.61 | 1,182.78 |
| August 2028 | 1,585.16 | 1,219.36 |
| September 2028 | 1,640.64 | 1,262.03 |
| October 2028 | 1,683.30 | 1,294.85 |
| November 2028 | 1,725.38 | 1,327.22 |
| December 2028 | 1,768.52 | 1,360.40 |
- November 2028: ₹1,327.22 (Minimum)
- December 2028: ₹1,768.52 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2029 | 1,803.89 | 1,387.61 |
| February 2029 | 1,850.14 | 1,423.19 |
| March 2029 | 1,922.30 | 1,478.69 |
| April 2029 | 1,884.61 | 1,449.70 |
| May 2029 | 1,829.71 | 1,407.47 |
| June 2029 | 1,912.05 | 1,470.81 |
| July 2029 | 1,874.56 | 1,441.97 |
| August 2029 | 1,932.54 | 1,486.57 |
| September 2029 | 2,000.17 | 1,538.60 |
| October 2029 | 2,052.18 | 1,578.60 |
| November 2029 | 2,103.48 | 1,618.06 |
| December 2029 | 2,156.07 | 1,658.52 |
- January 2029: ₹1,387.61(Minimum)
- December 2029: ₹2,156.07 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2030 | 2,199.19 | 1,691.69 |
| February 2030 | 2,255.58 | 1,735.06 |
| March 2030 | 2,343.55 | 1,802.73 |
| April 2030 | 2,297.60 | 1,767.38 |
| May 2030 | 2,230.68 | 1,715.91 |
| June 2030 | 2,331.06 | 1,793.12 |
| July 2030 | 2,285.35 | 1,757.96 |
| August 2030 | 2,356.03 | 1,812.33 |
| September 2030 | 2,438.49 | 1,875.76 |
| October 2030 | 2,501.89 | 1,924.53 |
| November 2030 | 2,564.44 | 1,972.65 |
| December 2030 | 2,628.55 | 2,021.96 |
- January 2030: ₹1,691.69 (Minimum)
- December 2030: ₹2,628.55(Maximum)
Financial Condition of Subro Ltd: Last 5 Years
| Financials | 2019 | 2020 | 2021 | 2022 | 2023 (TTM) |
|---|---|---|---|---|---|
| Sales (Rs. Crores) | 2,124 | 1,993 | 1,796 | 2,239 | 2,806 |
| Expenses (Rs. Crores) | 1,896 | 1,804 | 1,642 | 2,089 | 2,638 |
| Operating Profit (Rs. Crores) | 229 | 189 | 154 | 149 | 168 |
| OPM (%) | 11% | 9% | 9% | 7% | 6% |
| Other Income (Rs. Crores) | 6 | 62 | 11 | 9 | 20 |
| Interest (Rs. Crores) | 42 | 36 | 16 | 11 | 7 |
| Depreciation (Rs. Crores) | 79 | 90 | 92 | 102 | 110 |
| Profit Before Tax (Rs. Crores) | 114 | 124 | 56 | 45 | 71 |
| Tax (%) | 33% | 32% | 16% | 28% | 32% |
| Net Profit (Rs. Crores) | 76 | 85 | 47 | 32 | 48 |
| EPS (Rs.) | 11.69 | 13.00 | 7.26 | 4.98 | 7.35 |
| Dividend Payout (%) | 11% | 6% | 10% | 14% | 1% |
- Subros Ltd has navigated a dynamic financial landscape over the past five years.
- Sales, though experiencing a dip from 2019 to 2021, showcased a substantial recovery in 2022 and 2023, reaching Rs. 2,239 crores and Rs. 2,806 crores, respectively.
- Operating at an OPM of 6% in the TTM reflects prudent expense management and a steady operating profit.
- Diverse income streams are evident, with other income steadily increasing over the years.
- Robust compounded sales growth of 8% over the last five years and a commendable 9% growth in net profit in the TTM.
- The dividend payout percentage witnessed a decline, indicating strategic financial decisions.
- Stock price CAGR reveals an impressive upward trajectory, with a notable surge of 122% in the last year.
- Return on equity remains steady, suggesting sustained shareholder value over the years.
FAQS
What is Subros’ current market capitalization?
As of February 2nd, 2024, Subros has a market capitalization of ₹4,326.76 Crores.
The current share price of Subros, as of February 3rd, 2024, is ₹655.
Subros’ share price target for December 2024 ranges from a minimum of ₹615.13 to a maximum of ₹792.79.
The share price for December 2025 is estimated to range from a minimum of ₹743.48 to a maximum of ₹966.52.
Subros’ share price for December 2026 is projected to range from a minimum of ₹915.29 to a maximum of ₹1,189.88.
What is the company’s dividend payout percentage?
Subros’ dividend payout percentage for the most recent financial year is 1%.
What is Subros’ return on equity (ROE) over the last year?
Subros’ ROE for the last year stands at 6%.
What is Subros’ dividend yield?
Subros’ dividend yield is 0.15%.
What is Subros’ compounded sales growth over the last 10 years?
Subros’ compounded sales growth over the last 10 years is 8%.
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A nuanced narrative unfolds in the culmination of our exploration into Subros Ltd, the automotive industry titan born from a collaboration between the Suri family, Denso Corporation, and Suzuki Motor Corporation in 1985. Subros, a stalwart in the automotive sector, boasts a diverse product portfolio and significant market leadership in both passenger and commercial vehicle air conditioning.
The company’s recent Q3 FY24 results underscore robust financial health, characterized by substantial revenue and profit surges. While a dip in quarterly revenue is noted, the adept management of expenses and a noteworthy boost in operating income showcase Subros’s resilience. The company’s stock market performance, marked by commendable returns and unanimous analyst endorsements, solidifies its market stance.
Peering into the future, Subros charts an optimistic course with projected share price escalations and strategic expansion plans. However, certain financial nuances merit consideration. Subros, although nearly debt-free with improved debtor days, trade significantly above book value. Challenges lie in its modest sales growth and a comparatively lower return on equity, underscoring the importance of a discerning approach for potential investors.
In summary, Subros Ltd’s automotive journey encapsulates triumphs and challenges alike. As we navigate this automotive odyssey, the company’s prowess in air conditioning is undeniable, yet vigilance around financial metrics becomes crucial for investors embarking on this dynamic ride.
What did we learn?
- 1 About Subros
- 2 Subros Q3 FY24 Financial Highlights
- 3 How to Purchase Subros Shares?
- 4 Subros Share Price Target 2024 – 2030
- 5 Financial Condition of Subro Ltd: Last 5 Years
- 6 FAQS
- 6.1 What is Subros’ current market capitalization?
- 6.2 What is Subros’ current share price?
- 6.3 What is Subros’ share price target for 2024?
- 6.4 What is Subros’ projected share price for 2025?
- 6.5 What is Subros’ expected share price for 2026?
- 6.6 What is the company’s dividend payout percentage?
- 6.7 What is Subros’ return on equity (ROE) over the last year?
- 6.8 What is Subros’ dividend yield?
- 6.9 What is Subros’ compounded sales growth over the last 10 years?
- 7 Conclusion: Navigating Subros Ltd’s Automotive Landscape
