SUNDRMFAST - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | SUNDRMFAST | Market Cap | 17,781 Cr. | Current Price | 846 ₹ | High / Low | 1,080 ₹ |
| Stock P/E | 31.4 | Book Value | 193 ₹ | Dividend Yield | 0.85 % | ROCE | 17.8 % |
| ROE | 14.7 % | Face Value | 1.00 ₹ | DMA 50 | 835 ₹ | DMA 200 | 921 ₹ |
| Chg in FII Hold | 1.23 % | Chg in DII Hold | -1.44 % | PAT Qtr | 158 Cr. | PAT Prev Qtr | 130 Cr. |
| RSI | 58.6 | MACD | 3.17 | Volume | 1,15,744 | Avg Vol 1Wk | 84,158 |
| Low price | 730 ₹ | High price | 1,080 ₹ | PEG Ratio | 4.55 | Debt to equity | 0.11 |
| 52w Index | 33.2 % | Qtr Profit Var | 26.3 % | EPS | 27.6 ₹ | Industry PE | 27.3 |
📊 SUNDRMFAST (Sundram Fasteners Ltd.) shows solid fundamentals with strong ROCE (17.8%) and ROE (14.7%), supported by a very low debt-to-equity ratio (0.11). Earnings momentum is healthy with quarterly PAT growth of 26.3% (₹158 Cr vs ₹130 Cr). Valuations are slightly stretched with a P/E of 31.4 compared to industry average of 27.3, and PEG ratio of 4.55 indicates limited growth relative to valuation. Technical indicators show neutral-to-slightly bullish momentum with RSI at 58.6 and MACD at 3.17. Institutional activity is mixed, with FII inflows (+1.23%) but DII outflows (-1.44%).
💰 Ideal Entry Price Zone: ₹830 – ₹840 (near 50 DMA support).
📈 Exit / Holding Strategy: Hold for 3–5 years; consider profit booking near ₹880–900 unless momentum strengthens toward ₹950. Long-term investors benefit from low leverage and consistent earnings growth.
✅ Positive
- Strong ROCE (17.8%) and ROE (14.7%) highlight operational efficiency.
- Quarterly PAT growth of 26.3% shows earnings momentum.
- Low debt-to-equity ratio (0.11) reduces financial risk.
- EPS of ₹27.6 supports valuation strength.
- FII holdings increased (+1.23%), showing foreign investor confidence.
⚠️ Limitation
- P/E (31.4) is higher than industry average (27.3), indicating premium valuation.
- PEG ratio of 4.55 suggests limited growth relative to valuation.
- DII holdings declined (-1.44%), showing reduced domestic institutional support.
- Stock trading below 200 DMA (₹921) reflects medium-term weakness.
📉 Company Negative News
- Valuation premium compared to industry peers.
- DII outflows indicate cautious domestic sentiment.
📈 Company Positive News
- Strong quarterly profit growth and earnings momentum.
- FII inflows highlight foreign investor confidence.
- Technical support near 50 DMA (₹835) provides stability.
🏭 Industry
- Auto ancillary sector trading at industry PE of 27.3, offering moderate valuations.
- Sector supported by demand recovery in automotive and infrastructure growth.
🔎 Conclusion
SUNDRMFAST is a fundamentally strong company with efficient capital use, low leverage, and consistent earnings growth. Entry near ₹830–₹840 offers a favorable risk-reward. Long-term investors can hold for 3–5 years, targeting exits near ₹880–900, while monitoring valuation premium and institutional flows.