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    Subros

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    sumit3902
    Subros Limited is a leading supplier of thermal systems in India, established in 1985 with its headquarters in New Delhi. It is a joint venture public company with ownership from Suri family in India, Denso Corporation, and Suzuki Motor Corporation. The company designs, manufactures, and supplies high-quality thermal products to major automakers in passenger and commercial vehicles as well as railways and home AC applications. While it has strengths such as efficient management and latest technology, it faces threats such as seasonal demand and tough competition. A financial analysis finds its average net profit margin and sales growth to be around 2-3% and 12% respectively over the last 10 years. Based on various valuation ratios, the company does not seem under

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    Subros

    Uploaded by

    sumit3902
    180 views31 pages
    Subros Limited is a leading supplier of thermal systems in India, established in 1985 with its headquarters in New Delhi. It is a joint venture public company with ownership from Suri family in India, Denso Corporation, and Suzuki Motor Corporation. The company designs, manufactures, and supplies high-quality thermal products to major automakers in passenger and commercial vehicles as well as railways and home AC applications. While it has strengths such as efficient management and latest technology, it faces threats such as seasonal demand and tough competition. A financial analysis finds its average net profit margin and sales growth to be around 2-3% and 12% respectively over the last 10 years. Based on various valuation ratios, the company does not seem under

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    subros ltd

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    1572890433245_SUBROS

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    Subros Limited is a leading supplier of thermal systems in India, established in 1985 with its headquarters in New Delhi. It is a joint venture public company with ownership from Suri family in India, Denso Corporation, and Suzuki Motor Corporation. The company designs, manufactures, and supplies high-quality thermal products to major automakers in passenger and commercial vehicles as well as railways and home AC applications. While it has strengths such as efficient management and latest technology, it faces threats such as seasonal demand and tough competition. A financial analysis finds its average net profit margin and sales growth to be around 2-3% and 12% respectively over the last 10 years. Based on various valuation ratios, the company does not seem under

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    180 views31 pages

    Subros

    Uploaded by

    sumit3902
    Subros Limited is a leading supplier of thermal systems in India, established in 1985 with its headquarters in New Delhi. It is a joint venture public company with ownership from Suri family in India, Denso Corporation, and Suzuki Motor Corporation. The company designs, manufactures, and supplies high-quality thermal products to major automakers in passenger and commercial vehicles as well as railways and home AC applications. While it has strengths such as efficient management and latest technology, it faces threats such as seasonal demand and tough competition. A financial analysis finds its average net profit margin and sales growth to be around 2-3% and 12% respectively over the last 10 years. Based on various valuation ratios, the company does not seem under

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 31
    At a glance
    Powered by AI
    Subros is a leading supplier of thermal systems in India with a focus on the automotive industry. It has a joint venture ownership structure with prominent shareholders from India and Japan.

    Subros is engaged in the design, manufacturing and supply of thermal systems like AC units for automobiles as well as railways and home applications.

    The major shareholders of Subros are the Suri family with 36.79% ownership, Denso Corporation with 20% ownership and Suzuki Motor Corporation with 11.96% ownership.

    SUBROS LIMITED

    ABOUT THE COMPANY


     Subros is the leading supplier of Thermal system
    in India.

     Established in 1985.

     Headquarter is in New Delhi.

     Joint venture public ltd company with 36.79%


    ownership by suri family in India and 20%
    ownership by Denso Corporation and 11.96%
    ownership by Suzuki Motor Corporation .
    ABOUT THE BUSINESS OF THE COMPANY
     Subros is a leading supplier of Thermal systems
    in India

     The company is engaged in the design


    manufacturing and supplying of high quality
    products to all major auto makers in the
    passenger and commercial vehicle space covering
    railways and home A/C applications.
    ABOUT THE MANAGEMENT
     Total no. of directors – 12
     No. of independent directors – 6

     Promoters - Dr jyotsna suri

    Mr. Ramesh suri


    Ms. Ritu suri
     CFO- Mr. M.A. Pathan
     CS- Mr. Rakesh arora
    REMUNERATION OF MANAGEMENT
    S. no Name Salary Perq Commission Total

    1 Mr. Ramesh suri 48lakhs 79200 80lakhs 12879200


    2 Mr. shradha suri 19882236 79200 30lakhs 22961436
    3 Mr. G.N. Mehra 1140000 - - 1140000
    4 Mr. Hanuwant 120000 - - 120000
    5 Mr. K..R 5lakhs - - 5lakhs
    Ramamorthy
    6 Mr. shailendra 440000 - - 440000
    swarup
    7 Ms. Meena Sethi 720000 - - 720000

    8 Mr. M. A. Pathan 490000 - 20000 510000


    9 Dr. jyotsna suri 250000 - - 250000
    ABOUT DIRECTORS
    S. no NAME CATEGORY
    1 Mr. Ramesh Suri Not Independent
    2 Ms. Shradha Suri Not Independent
    3 Dr. Jyotsna Suri Non Independent
    4 Mr. M.A. Pathan Independent
    5 Mr. G.N. Mehra Independent
    6 Mr. Shailendra Swarup Independent
    7 Mr. K. R. Ramamoorthy Independent
    8 Mr. Hanuwant Sing Independent
    9 Ms. Meena Sethi Independent
    10 Mr. Kenichi Ayukawa Not Independent
    11 Mr. Y. Lida Not Independent
    12 Mr. Keiichi Yamauchi Not Independent
    SETTING FEES FOR BOARD MEETINGS
     Dr jyotsna suri = 250000
     Mr. Hanuwant = 50000

     Mr. G. N Mehra = 250000

     Mr. Shailendra Swarup = 250000

     Ms. Meena Sethi = 250000

     Mr. M. A. Pathan = 250000

     Mr. K. R. Ramamoorthy = 250000


    SOWT ANALYSIS

     Strength

     Opportunities

     Weakness

     Threat
    STRENGTH OF THE COMPANY
     Employees of the company because subros prefer
    to hire IIT and NIT students or those who are
    passed from government colleges.

     Efficient Management.

     Latest technology and demand of the product.


    OPPORTUNITIES FOR THE COMPANY
     New train vande bharat can be a great
    opportunity for the company.

     Subros can tie up with vande bharat train for A/C


    appliances .

     Can also tie up with metro projects.

     Can also involve in other technological appliances


    like washing machine refrigerator and television.

     Can also export A/C appliances to other countries


    THREAT FACING BY SUBROS
     Customers demand upgraded technology after
    every short period of time

     A/C appliances are required in summers only


    that means sales is seasonal.

     Its competitors are giving tough completion to


    the company.
    Financial Analysis
    COMPOUND ANNUAL GROWTH RATE

    Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

    Sales
    692 899 1,083 1,108 1,262 1,162 1,187 1,295 1,535 1,913
    Cagr
    11% 9% 7% 8% 7% 10% 13% 14% 12% 0%

    Sales growth of last 10 yrs = 11.87%


    GRAPHICAL REPRESENTATION OF CAGR

    CAGR
    16%

    14%

    12%

    10%

    8%
    CAGR
    6%

    4%

    2%

    0%
    1 2 3 4 5 6 7 8 9
    NET PROFIT MARGIN
    Ideal Average of NPM should be at least double of
    GDP.
    Yea 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
    r
    NP 13 28 29 48 21 20 20 24 13 61
    Sale
    s 692 899 1,083 1,108 1,262 1,162 1,187 1,295 1,535 1,913
    NP
    M 1.88%3.11% 2.68%4.33%1.66%1.72% 1.68% 1.85%0.85%3.19%

    Average NPM of last 10 Years = 2.30%


    Rating = 2
    INTEREST COVERAGE RATIO
     Interest coverage ratio of subros ltd. 3.59
    Rating = 3
     Taxes paid in last 10 years

    Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
    Tax
    paid 28% 29% 11% 17% 16% -5% 0% 9% -63% 26%

    Average taxes paid in last 10 years are 7%


     Rating = 1
    RATIOS
     Debt to Equity of the company = 0.36 Rating = 4
     Current Ratio = 1.20 Rating = 3

     Quick Ratio = 0.73 Rating = 2

     Cumulative CFO/Cumulative PAT = 1276/277

    = 460%
    Rating = 5

    2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
    CFO 80 79 39 87 177 95 143 149 111 316

    PAT 13 28 29 48 21 20 20 24 13 61
    Industrial Analysis
    COMPARISON AMONG THE COMPETITORS
    Bosch

    Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018SUM
    CFO 483 897 886 445 871 1,057 1,396 1,318 1,457 1,729 10539

    PAT 634 591 859 1,123 958 885 1,338 1,531 1,741 1,371 11031

    Motherson Sumi
    Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018SUM

    CFO 250 408 410 589 1,486 2,695 3,390 2,188 3,800 3,264 18480

    PAT 176 243 391 260 444 765 862 1,292 1,554 1,597 7584
    Exide Inds.

    Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018SUM
    CFO 505 524 398 510 360 647 324 1,340 430 517 5555
    PAT 284 537 666 461 523 487 546 624 694 668 5490

    Endurance Tech.

    Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018SUM
    CFO 0 278 295 542 345 569 413 698 537 742 4419
    PAT 0 4 124 182 169 204 252 299 330 391 1955
    WABCO INDIA

    Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018SUM

    CFO 3 53 49 155 90 143 124 242 180 311 1350

    PAT 36 78 127 153 131 117 121 203 213 273 1452

    Amara Raja Batt.

    Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018SUM

    CFO 236 214 86 298 335 279 395 555 553 322 3273

    PAT 80 167 148 215 287 367 411 492 478 471 3116
    MINDA INDS.

    Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018SUM

    CFO 0 88 45 77 95 42 135 146 335 364 1327

    PAT 0 23 36 29 28 7 68 111 165 310 777


    COMPARISON AMONG THE COMPETITORS
    sales growth
    S. No Peers CMP 10 yr NPM CFO/PAT

    1 Bosch 13132.35 10.33% 13.04% 96%


    2 Motherson Sumi 95.95 37.70% 2.54% 244%
    3 Exide Inds. 183.45 12.16% 7.97% 101%
    4 Endurance Tech. 988.15 10.09% 6.59% 226%
    5 WABCO India 6138 20.96% 9.89% 93%
    6 Amara Raja Batt. 680.85 17.86% 7.12% 105%
    7 Minda Inds. 353.75 25.89% 4.83% 171%
    8 Subros 237.15 11.87% 3.58% 461%
    Average 18.36% 6.95% 187%
    Management Analysis
    MANAGEMENT EFFICIENCY AND LOYALTY
     Cumulative CFO / Cumulative PAT = 461%
    Rating = 5

     Independent Directors/ Total directors = 50%


    Rating = 5

     Change in promoter’s stakes in 3 years = 3.2%


    Rating = 5

     Pledged Percentage = 0%
    Rating = 5
    VALUE ANALYSIS
    1 $ TEST
     1 $ Test = Change in market capital / Total
    retain
    earning.
    Change in Market Cap = 1459.1 Cr
    Total retain earning = 246.14 Cr
    1$ Test = 5.92
    Passed in $1 Test

     Total Remuneration = 39520636


    PAT = 76.13 Cr
    Remuneration / PAT = 0.059 = 5%
    Rating = 4
     Price to earning multiple = 21.65
     Rating = 4

     Price to Book value = 2.27


     Rating = 2
    RATING
    Name Percentage Rating
    Sales growth of 10 11.87% 2
    yrs
    Net Profit Margin 3.58% 2
    Interest Coverage 3.59 4.5
    Ratio
    Tax paid 7% 1
    Current Ratio 1.20 2
    Quick ratio 0.73 3
    Debt to equity 0.36 4
    CFO/PAT 461% 5
    $1 TEST 5.92 Passed
    Remuneration/ PAT 5% 4
    Price to earning 21.65 4
    Price to Book Value 2.27 2
    BUY OR NOT THIS COMPANY ?

    I do not recommend to buy this company.


    THANK YOU.

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