Subros jumps 9% on order win from Indian Railways, stock nears 52-week high
The company has bagged an order from Indian Railways for supply of coach air-conditioners (LHB-RMPU Type 1) in a recently concluded tender.
SI Reporter |
Shares of Subros moved higher by 9 per cent to Rs 408.80 on the BSE in Thursday’s intra-day trade after the company has bagged an order from Indian Railways for supply of coach air-conditioners (LHB-RMPU Type 1) in a recently concluded tender. The stock had hit a 52-week high of Rs 418 on October 25, 2021. It hit a record high of Rs 442 on January 12, 2018.
At 02:41 pm; Subros traded 4 per cent higher at Rs 388.80, as compared to 0.04 per cent decline in the S&P BSE Sensex.
Subros is already a supplier of rail driver cabin air-conditioning system and with this business, the complete scope of air conditioning for rail driver cabin and coaches is complete, the company said in exchange filing. The company further said this is in line with its strategic direction to expand business in railway electric mobility segment.
For July-September quarter (Q2) the company reported profit after tax of Rs 5.1 crore, down 71 per cent YoY and +65 per cent QoQ, was impacted by the constrained production, particularly at Maruti (due to the ongoing semi conductor issue). However, the medium-term drivers remain in place, including new order wins for the Maruti-Toyota joint production models from FY23E onwards (~8-10 per cent of revenues) and the expected ramp-up in the home AC segment, HDFC Securities said. The brokerage firm has buy rating on the stock with target price of Rs 410 per share.
Subros, a joint venture with Suri family of India, Denso Corporation & Suzuki Motor Corporation, Japan; is the leading manufacturer of thermal products for automotive applications in India, in technical collaboration with Denso Corporation, Japan.
The company is the only integrated manufacturing unit in India for Auto Air Conditioning systems and Thermal Products.
Subros manufactures compressors, condensers, heat exchangers and all connecting elements required to complete AC loop and caters to all segments viz. passenger vehicles, buses, trucks, refrigeration transport and railways.
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