Subros (SUBROS)
Fast GrowerFairStock Score: 29/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹758.25 |
| Market Cap | ₹4,946.5 Cr |
| P/E Ratio | 29.76 |
| ROCE | 19.95% |
| ROE | 16% |
| Dividend Yield | 0.4% |
| Profit Growth | 1.6% |
| Debt/Equity | 0.06 |
| Sales Growth | 17.5% |
| Promoter Holding | 36.79% |
| 52-Week Range | ₹622.1 — ₹1,213.7 |
| Sector | Industrial Products |
| Book Value | ₹190.66 |
Strengths
- Very low debt-to-equity of 0.07, indicating a strong balance sheet
- Healthy capital efficiency: ROCE of 19.95% and ROE of 16%
- Profit growth of 22.42% outpacing sales growth of 15.43%, showing operating leverage
- Piotroski F-score of 7/9 points to solid financial health despite the risk label
Concerns
- Expensive valuation: P/E of 30.74 and P/B of 4.90 leave little margin of safety
- Thin net profit margin: latest quarter net profit of ₹35 Cr on sales of ₹948 Cr is only ~3.7%
- Low dividend yield of 0.33% provides negligible cash return while waiting
- Promoter holding of 36.79% and FairStock Score of 33/100 raise governance and risk questions
AI Analysis
At ₹773.75, Subros has a market cap of ₹5,167 Cr and costs me 30.74 times earnings and 4.90 times book. Benjamin Graham would call that a high price, and so do I. The business underneath has some encouraging traits: debt/equity of only 0.07, ROCE close to 20%, ROE of 16%, and a Piotroski F-score of 7/9 suggest a financially clean operation. Profit growth of 22.42% has outpaced sales growth of 15.43%, which shows operating leverage and management discipline. But I must be honest: latest quarter's net profit of ₹35 Cr on ₹948 Cr of sales is only a 3.7% net margin. That is a thin cushion, and the dividend yield of 0.33% means I am not being paid to wait. Promoter holding of 36.79% is not the high-insider ownership I like to see; FairStock's 33/100 risky score also tells me to stay cautious. The stock has fallen from a 52-week high of ₹1,213.70, and while that removes some speculative froth, the P/E remains rich. At a PEG of 1.62, the growth is not so cheap that I can ignore valuation. This is a decent, perhaps fast-growing industrial business, but a wonderful business at too high a price becomes a poor investment. I would need a lower price or more years of proven compound growth before I put real money to work. For now, I watch.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer