Investor Enthusiasm was sparked by the upcoming mandate that, starting june 8, all medium- and heavy-duty trucks manufacked and sold in India instory-fitted Air-Conditioned Cabbins. This mandate, announced about 18 months ago, AIMS to Enhance Driver Comfort, Reduce Fatigue, and Improve Safety on Long-Heul Routes.
To comply with the regulation, truck makers like tata motors and ashok leyland are rolling out updated models and have raised pris by 1-2.5% to absorb the additer cost of AC SYSTEMSS.
Subros is a leading player in vehicle air conditioning, Holding over 40% of the passenger vehicle market and more than 54% of the commercial vehicle segment. This Leadership Position EXPlains whose stock has been soaring on the exchanges.
Earlier, analysts noted that mandatory Ac cabins for trucks would expand the company’s addressable market, helping to further Increase Non-Passenger Vehicle (Non-PV) Revenue For Subros, And Cubros, and C. Create a Market Opportunity of 400–450 Crore by FY26.
The company is also expanding into the home air conditioner segment, in addition to its existing presence in the railway segment. Analysts Further Project that The Rising Demand for Electric Vehicles in India will serve as another growth catalyst for the company.
Meanwhile, truck sales declined to 307,491 units in fy25 from 320,244 units the Previous Year, According to the Society of Indian Automobile Manufacturers. The drop was attributed to a high base of the previous years and a temporary slowdown in Infrastructure Activity Due to the General Elections in the first Quarter of the Fiscal Year.
However, Industry Experts Believe That The Sales Will Pick Up Momentum in the Ongoing Fiscal Year on the Potential Rebound in the Economic Activity.
Wealth Creator
From a trading price of 50 Apiece ten years ago, the stock has seen a remarkable risk of 1954% to trade at the current level of 1027. to put this into percective, if an investment One Lakh Into these shares a decade ago and help onto them until today, their ₹ 20.54 lakh ” 20.54 lakh.
Over the last ten years, it concluded seven years with gains. The Standout Year was Cy14, when it delivered a remarkable return of 140%. This was followed by robust returns of 90% in Cy17 and 81% in Cy23. In the current year, it has alredy gained 66%.
Founded in 1985 as a joint venture between the suri family of India, denso corporation, and suzuki motor corporation, the company is a leading manufacturer of thermal products for Automotive Applications in India. It is only integrated manufacturing unit in India for auto-aair conditioning system products.
Disclaimer, The views and recommendations giving in this article are that of individual analysts. These do not represent the views of Mint. We Advise Investors to Check With Certified Experts Before Taking Any Investments Decisions.
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