HDFC Securities: Subros To Benefit From The ‘Make In India’ Theme
A person inspects an evaporator for vehicle air conditioners on the production line at a facility.  (Photographer: SeongJoon Cho/Bloomberg)

HDFC Securities: Subros To Benefit From The ‘Make In India’ Theme

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

HDFC Securities Report

Subros Ltd.’s Ebitda margin surprised at 11.7% (versus 9.5% in FY20), led by higher localisation levels.

The management highlights that the double-digit margin range is sustainable, driven by its cost-cutting initiatives and improving production levels.

We believe that the parts supplier would benefit from a revival in passenger car volumes and the company’s diversification initiatives.

The comapny is scaling up its presence in home air conditioners and railways segment (under the Make in India theme).

Click on the attachment to read the full report:

HDFC Securities Subros Q2FY21 Results Update.pdf

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