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