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Check Before You Invest : Subros Ltd

BSE: 517168 NSE: SUBROS ISIN: INE287B01021
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Subros Ltd belong to?
Subros Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Subros Ltd a good quality company?
Subros Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Subros Ltd undervalued or overvalued?
Subros Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Subros Ltd a good buy now?
Subros Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Subros Ltd?
Subros Ltd revenue growth is 9.7% for FY-2025 , which is below its 5 year CAGR of 11.1% , indicating slower growth.
Q.2 Gross Profit margin of Subros Ltd?
Subros Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.8% for FY-2025 , which is above its 5 year median of 8.2% , indicating increasing margins.
Q.3 Operating Profit Margin of Subros Ltd?
Subros Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.59% for FY-2025 , which is above its 5 year median of 8.31% indicating increasing margins.
Q.4 Net Profit Margin of Subros Ltd?
Subros Ltd Net Profit Margin is 4.47% for FY-2025 , is above with its 5 year median of 2.6%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 9.8 8.2
Operating Profit Margin 9.59 8.31
Net Profit Margin 4.47 2.6
Q.5 Return on Asset of Subros Ltd?
Subros Ltd Return on Asset is 7.87(x), which is above its 5 year historical median of 3.11(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Subros Ltd?
Subros Ltd Return on equity is 14.68% for FY-2025 , which is above its historical median of 6.04%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Subros Ltd?
Subros Ltd Return on capital employed is 20.28% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Subros Ltd?
Subros Ltd Cash conversion cycle is 18 , above its historical median of 5 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.76 1.74
ROE 14.68 6.04
ROCE 20.28 8.52
Cash Conversion Cycle 18 5
Q.9 Debt to Equity ratio of Subros Ltd?
Subros Ltd Debt-to-Equity ratio is 0.04 , which is lower with the industry average of 0.4 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Subros Ltd?
Subros Ltd Debt to cash flow from operations is 0.23 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Subros Ltd?
Promoters hold 36.79% of the Subros Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Subros Ltd vs industry peers?
Subros Ltd revenue CAGR is 11.06% , compared to the industry median CAGR of 11.82% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 3,367.6 492.3
Gross Profit 330.1 44.4
Operating Profit 322 47
Net Profit 150 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.76 1.23
ROE 14.68 11.57
ROCE 20.28 13.36
Cash Conversion Cycle 18.26 47

Valuation & price assessment

Q.1 Stock return of Subros Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 23% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 23% 20.1% 35.5% 30.7%
Q.3 Valuation ratios of Subros Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 30.22 41.34 39.31
Price to Book 4.11 2.23 2.88
Price to Sales 1.36 1.09 1.29
EV to EBITDA 13.45 13.64 11.85

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