Subros Limited Stock Research

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Subros Limited Detail

Subros Limited is in portfolio of Ajay Upadhyay. He is one of the top investors in India. The company belongs to Auto Ancillary sector. 

As per the Company website it is a joint venture public limited company with 40% ownership by Suri family of India and 13% ownership by Denso Corporation & Suzuki Motor Corporation each.

It is the leading manufacturer of thermal products for automotive applications in India, in technical collaboration with Denso.

Company products along with target vehicle segment is outlined below for reference

  • Passenger Vehicle
    • Compressors , Condensers , HVAC , Tubes and Hoses
  • Bus AC
  • Rail AC
  • Transport Refrigeration System
  • Truck Cabin AC System
  • Off-Roader AC
  • Defense Vehicle air conditioning system
  • Home AC

It has around six manufacturing plants located in Noida, Chennai, Manesar, Pune and Sanand. The combined capacity is of 1.5 Million AC Kits per annum.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

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Subros Limited Stock Performance

The stock performance can be divided into two parts.One from year 2002 to 2014 and other from year 2014 till date. The Company traded near 30 mark in year 2014 start. So on absolute basis it gave around 6 times return from year 2002 to 2014.

Majority of returns happened after year 2014. After 2014 till date it has given close to 10 times return in past few years. So new investors should wait before making a position in the Company. Most companies have cool off period after good run. So it is better to wait for cool off before investing in a Company.

Subros Limited My Opinion

Subros Limited is a Auto Ancillary Company.The Company has niche product segment dealing with Cooling system for Vehicles.

It has expanded its product portfolio and deals with Railway cooling system and Home cooling system. This diversification will help it tap potential in Home cooling system along with Railways as well. These two are major growth sectors as well.

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Cooling system will remain in demand post transition to Electric vehicle as well. There will not be any impact on this Company because of the transition. Denso is one of the top five Auto Ancillary company in World. Suzuki is also big name in auto space. It is joint venture of these two companies.

Though the Company has run lot in last few years it has potential for future. It is one Company worth tracking as of now. I have already invested in Auto Ancillary sector. I will explore this Company in more details going forward.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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