The union minister Nitin Gadkari announced that all trucks would soon require air-conditioned driver cabins. 🚚
As an investor, you might wonder which company will benefit from this. 🤔
In this 🧵, let's explore a company that stands to gain here.
#subros
As an investor, you might wonder which company will benefit from this. 🤔
In this 🧵, let's explore a company that stands to gain here.
#subros
Subros Ltd was founded in 1985 as a JV, with the Suri family owning 36.79%, Denso Corp from Japan at 20%, and Suzuki Motor Corp from Japan at 11.96%.
It quickly became India's top dog for making thermal products for auto.
The stock price shot up by over 30% in 2 days. 🤯
It quickly became India's top dog for making thermal products for auto.
The stock price shot up by over 30% in 2 days. 🤯
The company has recorded the highest-ever turnover of Rs 2806 crores, with a growth of 25% in FY23.
PAT has grown substantially by 48% to Rs 48.09 crores in FY23.
PAT has grown substantially by 48% to Rs 48.09 crores in FY23.
How can the company benefit from the new mandate by the Union Minister, you might be thinking?
Let's see how. 🕵️
94% of the company's revenue comes from the Car segment, while the remaining 6% comes from the non-Car segment, which includes buses, trucks, home ACs, etc.
Let's see how. 🕵️
94% of the company's revenue comes from the Car segment, while the remaining 6% comes from the non-Car segment, which includes buses, trucks, home ACs, etc.
In the recent con call with the company, the management stated that in future, they are targeting 25% of revenue should come from the non-Car segment.
Also, 84% of the revenue currently comes from Maruti Suzuki, which they aim to reduce to 60%.
Also, 84% of the revenue currently comes from Maruti Suzuki, which they aim to reduce to 60%.
The company has a truck cabin AC system in their product portfolio.
You can look at their client base, out of which truck client segment is set to expand after this news.
You can look at their client base, out of which truck client segment is set to expand after this news.
The management has also mentioned the growth rate of the CV industry is 28% YOY while the company has shown a growth of 32%.
With AC cabins becoming mandatory in trucks, the demand for these cabins is set to surge along with the need for trucks in the future. This means a higher demand for Subros' products
Now, let's take a look at some fascinating data about the growing demand for trucks. ⤵️
Now, let's take a look at some fascinating data about the growing demand for trucks. ⤵️
A recent report by NITI Aayog reveals an exciting prediction:
The number of trucks on Indian roads and highways is expected to skyrocket, going from 4 million in 2022 to approximately 17 million vehicles by 2050. That's more than a fourfold increase!
The number of trucks on Indian roads and highways is expected to skyrocket, going from 4 million in 2022 to approximately 17 million vehicles by 2050. That's more than a fourfold increase!
The company is already making a CAPEX for their new launches, as the management shared the information in the con-call.
After the news, the company might increase the capacity of the Truck Cabin AC System.
After the news, the company might increase the capacity of the Truck Cabin AC System.
The 3-year compounded sales growth of the company stands at 12%, which might increase substantially because of the increase in the Truck AC Cabin business.
Also, the FIIs have increased their holding from 0.62% in Q3FY23 to 32.62% in Q4FY23.
Also, the FIIs have increased their holding from 0.62% in Q3FY23 to 32.62% in Q4FY23.
This thread was meant for educational purpose only, with no buy/sell recommendations.
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Also, follow us - @Finology_Quest for more informative content. 😊
Hit retweet 🔁 if you found this thread helpful.
Also, follow us - @Finology_Quest for more informative content. 😊
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