Gadkari’s cool talk lifts Subros 20 per cent

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shares Sobros The upper constituency was hit by 20 per cent on Tuesday after Road Transport and Highways Minister Nitin Gadkari said air conditioner Truck cabins will soon be mandatory. The stock closed at $434.10, its highest level in 52 weeks. Shares of Amber Enterprises India also rose on Tuesday. stock Amber projectsInc., a prominent heating, ventilation and air conditioning (HVAC) solutions provider, jumped 7.84 percent to $2,271 on BSE. During the day, it reached a high of $2,383.95.

The PTI report quoting Gadkari said that since drivers play a major role in the transport sector, which is one of the most important areas for India as the world’s fastest growing large economy, there is a need to address issues related to their working conditions and state of mind.

“Some people objected to that, saying it would increase costs… But before I came here, I signed the file that from now on, the driver’s cabins in the trucks will be air-conditioned,” Gadkari said.

The biggest beneficiary

According to analysts, Subros will be the biggest beneficiary of the move, providing a full suite of truck cabin AC systems.

Ravi Singhal, CEO of GCL Broking, said making air conditioning compulsory in every truck cabin helped the stock rise sharply on Tuesday. “Net income as well as net income can show a further growth of 12 percent,” he said.

According to him, Subros has become one of the most favored stocks in the auto-plus space, keeping its margins at higher levels.

Strong jump

Revenue from operations for the quarter ended March 2023 increased by 9.8 per cent year on year at ₹748.1 crore as against ₹681.10 crore reported in the same period last year. Adjusted PAT increased to ₹18.64 crore (₹16.7 crore). For FY23, it recorded profit of Rs.48.48 crore and revenue of Rs.2806.28 crore.

The stock has risen more than 18 times from its low of Rs 23 to 25 in June 2013, to the current level. Subros shares have jumped about 42 percent in 2023 so far.

Subros, incorporated in 1985 as a public limited company with 36.79 percent ownership by the Suri family of India, 20 percent by Denso Corporation, Japan, and 11.96 percent by Suzuki Motor Corporation, Japan.

Among the public, eight mutual funds own 13.30 per cent (UTI Transportation Fund, Sundaram Small Cap Fund, Nippon India Small Cap Fund, DSP Small Cap Fund and Canara Robeco Small Cap Fund). Individual investors own a stake of 8.16 percent.

Meanwhile, other air conditioner makers such as Johnson Controls (Hitachi Air Conditioners Company of India) f blue startoo, rose 1.3 per cent at INR 1,103.20 and 3.6 per cent at INR 790.35 respectively, even as Voltas closed flat at INR 789.60.