Subros Q2FY18: Net profit grew 209.65% YoY; Overweight | Financial Results | Subros | Stock Tips | Stock Recommendation | Overweight | Buy : IndiaNotes.com




The company has achieved a turnover of Rs. 4971.50 million for the 2nd quarter of the FY201718 as against Rs. 4905.90 million in the corresponding quarter of the previous year.

EBITDA was Rs. 572.90 million in Q2 FY18 as compared to Rs. 474.10 million in the corresponding period of last year, an increase 20.84%.

Profit before tax (PBT) stood at Rs. 233.60 million in Q2FY18 as compared to Rs.36.40 million in Q1FY18, up by 541.76%.

In Q2 FY18, net profit increased grew 209.65% and stood at Rs.150.80 million from Rs. 48.70 million in Q2 FY17.


The company has reported an EPS of Rs. 2.51 for Q2 FY18 as against Rs.0.81 in Q2 FY17.


During H1 FY18, the revenues of the company increased to Rs.9686.40 million as compared to Rs.8553.10 million in H1FY17, up by 13.25%.  

OUTLOOK AND CONCLUSION

At the current market price of Rs. 267.25, the stock P/E ratio is at 39.16 x FY18E and 26.22 x FY19E respectively.


Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 6.83 and Rs. 10.19 respectively.

 

Net Sales and PAT of the company are expected to grow at a CAGR of 14% and 32% over 2016 to 2019E respectively.

 

On the basis of EV/EBITDA, the stock trades at 9.97 x for FY18E and 8.78 x for FY19E.


Price to Book Value of the stock is expected to be at 4.11 x and 3.70 x for FY18E and FY19E respectively.

The company has recently acquired the business for Blower assembly from Ashok Leyland, Swaraj Mazda, Mahindra truck and Bus division and Tata Motors. In addition to, few of these customers are choosing air conditioning fitment as an optional action, in coming years, the new business opportunity will add approximately Rs.1750 million to the top line of the company. Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

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