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.