SUNDRMFAST - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | SUNDRMFAST | Market Cap | 17,792 Cr. | Current Price | 848 ₹ | High / Low | 1,080 ₹ |
| Stock P/E | 31.4 | Book Value | 193 ₹ | Dividend Yield | 0.94 % | ROCE | 17.8 % |
| ROE | 14.7 % | Face Value | 1.00 ₹ | DMA 50 | 841 ₹ | DMA 200 | 911 ₹ |
| Chg in FII Hold | 1.23 % | Chg in DII Hold | -1.44 % | PAT Qtr | 158 Cr. | PAT Prev Qtr | 130 Cr. |
| RSI | 54.4 | MACD | 5.31 | Volume | 2,25,240 | Avg Vol 1Wk | 1,38,583 |
| Low price | 730 ₹ | High price | 1,080 ₹ | PEG Ratio | 4.55 | Debt to equity | 0.11 |
| 52w Index | 33.7 % | Qtr Profit Var | 26.3 % | EPS | 27.6 ₹ | Industry PE | 27.0 |
📊 Core Financials
- Revenue & Profit: Quarterly PAT ₹158 Cr. vs ₹130 Cr. previous quarter, showing solid growth of 26.3%.
- Margins: ROE at 14.7% and ROCE at 17.8% reflect healthy efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.11 indicates very low leverage, strong financial stability.
- Cash Flow: Stable due to consistent earnings and conservative debt management.
💹 Valuation Indicators
- P/E Ratio: 31.4 vs Industry PE of 27.0 — trades at a premium, suggesting high investor expectations.
- P/B Ratio: Price ₹848 vs Book Value ₹193 → ~4.39x, relatively expensive compared to peers.
- PEG Ratio: 4.55 indicates overvaluation relative to growth prospects.
- Intrinsic Value: Current price appears stretched, limited margin of safety.
🏭 Business Model & Advantage
Sundram Fasteners is a leading auto component manufacturer with diversified product lines across fasteners, powertrain parts, and industrial components. Its competitive advantage lies in strong OEM relationships, global presence, and consistent quality standards. However, cyclical demand in the auto sector impacts earnings stability.
📈 Technicals & Entry Zone
- RSI at 54.4 indicates neutral momentum.
- MACD positive (5.31) suggests short-term bullishness.
- Entry Zone: Attractive accumulation around ₹780–₹820 range.
- Long-term Holding: Suitable for investors seeking exposure to auto component growth, but valuation risks remain.
✅ Positive
- Quarterly PAT growth of 26.3%.
- Strong ROCE (17.8%) and ROE (14.7%).
- Low debt-to-equity ratio (0.11).
⚠️ Limitation
- P/E ratio (31.4) above industry average.
- P/B ratio (4.39x) signals overvaluation.
- PEG ratio (4.55) indicates stretched valuations.
📰 Company Negative News
- DII holdings declined (-1.44%).
- Valuation multiples significantly above industry norms.
🌟 Company Positive News
- FII holdings increased (+1.23%).
- Quarterly PAT improved from ₹130 Cr. to ₹158 Cr.
- Strong global presence and OEM partnerships.
🏭 Industry
Auto component industry PE at 27.0 reflects moderate valuations. Demand is driven by automotive growth, electrification, and exports. Cyclical risks remain tied to global auto demand and raw material costs.
🔎 Conclusion
Sundram Fasteners demonstrates strong profitability, low debt, and global presence. However, current valuations are stretched with high P/E, P/B, and PEG ratios. Long-term investors may consider accumulating in the ₹780–₹820 range, aligning with auto sector growth while being cautious of valuation risks.
For deeper insights, you could explore a peer comparison or an industry outlook to complement this analysis.