⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SUNDRMFAST - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | SUNDRMFAST | Market Cap | 17,071 Cr. | Current Price | 814 ₹ | High / Low | 1,080 ₹ |
| Stock P/E | 32.0 | Book Value | 183 ₹ | Dividend Yield | 0.89 % | ROCE | 17.4 % |
| ROE | 14.7 % | Face Value | 1.00 ₹ | DMA 50 | 892 ₹ | DMA 200 | 958 ₹ |
| Chg in FII Hold | -0.54 % | Chg in DII Hold | 0.55 % | PAT Qtr | 130 Cr. | PAT Prev Qtr | 140 Cr. |
| RSI | 31.9 | MACD | -28.3 | Volume | 52,538 | Avg Vol 1Wk | 1,00,852 |
| Low price | 791 ₹ | High price | 1,080 ₹ | PEG Ratio | 5.56 | Debt to equity | 0.14 |
| 52w Index | 7.95 % | Qtr Profit Var | 8.11 % | EPS | 25.4 ₹ | Industry PE | 25.0 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT declined slightly from ₹140 Cr. to ₹130 Cr., showing short-term earnings pressure.
- Margins: ROE at 14.7% and ROCE at 17.4% reflect healthy profitability and efficient capital use.
- Debt: Debt-to-equity ratio of 0.14 indicates very low leverage, ensuring financial stability.
- Cash Flow: Strong due to diversified auto component business, though cyclical demand impacts earnings.
💹 Valuation Indicators
- P/E Ratio: 32.0 vs Industry PE of 25.0 → slightly expensive compared to peers.
- P/B Ratio: Current Price ₹814 vs Book Value ₹183 → ~4.45x, reflecting premium valuation.
- PEG Ratio: 5.56 → indicates overvaluation relative to growth prospects.
- Intrinsic Value: Estimated fair value near ₹750–770, suggesting current price is slightly overvalued.
🏭 Business Model & Competitive Advantage
- Leading auto component manufacturer with diversified product portfolio.
- Strong presence in fasteners, precision components, and engineering solutions.
- Competitive advantage lies in scale, long-term OEM relationships, and export markets.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive between ₹750–770, closer to intrinsic value.
- Long-Term Holding: Suitable for investors seeking exposure to auto ancillary sector; hold for 3–5 years with caution due to valuation risks.
✅ Positive
- Strong ROCE (17.4%) and ROE (14.7%) highlight profitability.
- Low debt-to-equity ratio (0.14) ensures financial stability.
- DII holdings increased (+0.55%), showing domestic institutional confidence.
⚠️ Limitation
- Quarterly PAT decline indicates earnings pressure.
- High PEG ratio (5.56) signals overvaluation relative to growth.
- P/E ratio (32.0) is higher than industry average.
📉 Company Negative News
- FII holdings decreased (-0.54%), showing reduced foreign investor interest.
- Short-term earnings decline due to cyclical demand slowdown.
📈 Company Positive News
- DII holdings increased, reflecting domestic confidence.
- Strong long-term OEM relationships ensure stable demand.
- Low debt levels provide resilience against market volatility.
🏭 Industry
- Auto ancillary industry is cyclical, driven by vehicle demand and exports.
- Industry PE at 25.0 shows moderate valuation compared to Sundram Fasteners’ premium.
- Global demand for auto components supports long-term growth prospects.
🔎 Conclusion
Sundram Fasteners demonstrates solid fundamentals with strong ROCE, ROE, and negligible debt. However, current valuations are stretched with high P/E and PEG ratios, and earnings have shown short-term pressure. Entry around ₹750–770 offers better risk-reward. Long-term investors can hold for 3–5 years, benefiting from stable OEM relationships and industry growth, but caution is advised due to premium valuation.