Dolat Capital: Subros Well Poised To Ride The Passenger Vehicle Recovery

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Subros Ltd. reported weak performance in Q1 FY21, impacted by slowdown in passenger vehicle segment and the nationwide lockdown. Revenue de-grew 87% YoY to Rs 738 million (versus estimate Rs 1.4 billion).Ebitda turned negative to Rs 299 million (versus estimate Rs 115 million) due to negative operating leverage. Production in Q1 was equivalent to two weeks of regular working days.Management stated that the production is gradually ramping up and now back to 75% of pre-Covid-19 levels. However, system inventory which was piled up due to lockdown will be liquidated in Q2.At present, Subros has Rs 2.4 billion worth of inventory (versus normal inventory of Rs 1.9 billion).We expect the company to be a key beneficiary of recovery in the PV segment and market share gain by Maruti Suzuki India Ltd. owing to increasing preference for low-end entry-level cars. Maruti Suzuki accounts for approximately 70% of revenue for Subros..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dolat Capital: Subros Well Poised To Ride The Passenger Vehicle Recovery

Dolat Capital: Subros Well Poised To Ride The Passenger Vehicle Recovery

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