Investment update: Subros (value pick)

I have talked about Subros in one of my previous posts. The price then was somewhere around Rs.170. It has since then moved beyond Rs.200 and is currently quoting at around Rs.224.

Why I was and remain bullish over the company's prospects:

1. Subros is one of the largest manufacturer and supplier of air conditioning systems to big car manufacturers in India (Maruti and Telco),
2. it has over 50% share in the domestic market,
3. trades at a P/E of less than 10 times,
   
4. pays a decent dividend (Rs.3.5 per share for fiscal 2006),
5. both Suzuki and Denso have strategic stakes of 13 per cent each in the company, and
   
6. going forward it seems poised for healthy growth, given the company expansion plans (1 and2).

I own the shares of this company and am planning to hold them with a personal price target of Rs.300 per share.

PS: Sharekhan and Kotak Securities have recently (in April-May 2006) put a buy on Subros with a price target of Rs.370 per share & Rs.280 per share. It was up some six odd per cent to Rs.224 per share. A value pick.