Sundaram Clayton Ltd
Sundaram Clayton Ltd
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BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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29 extracted metrics + investor summaries across FY17–FY26.
Tapetide Score
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Technical Indicators
Key Insights
Weaknesses
4- Company has low interest coverage ratio.
- Company has a low return on equity of -17.8% over last 3 years.
- Company might be capitalizing the interest cost
- Earnings include an other income of Rs.536 Cr.
Growth Rate
AI Analysis — Bull vs Bear
Sundaram Clayton Ltd trades at a market cap of ~₹3,003 Cr with a PE of 11.9x. The company has reported negative ROE of -17.8% over the past 3 years, compounded profit decline of -83% over 3 years, and its earnings include a significant other income component of ₹536 Cr, raising questions about core operating profitability.
- PE ratio of 11.9x is modest relative to the Consumer Discretionary sector, suggesting limited valuation premium already priced in
- FY26 consolidated net profit recovered to ₹252 Cr versus a loss of ₹10.65 Cr in FY25, indicating a turnaround in bottom line
- Consolidated revenue of ₹2,026 Cr in FY26 demonstrates a sizeable operating base with 5-year sales CAGR of 12%
- Company resumed dividend payments at ₹4.75 per share in FY25, signalling management confidence in cash flow stability
- Price-to-book of 2.33x is not excessively stretched for an auto-component manufacturer with hard assets
- FY26 operating profit improved to ₹105.87 Cr from ₹94.64 Cr in FY25, showing sequential margin recovery
- Other income of ₹534.94 Cr in FY26 (up from ₹220.62 Cr in FY25) provided substantial profit buffer, likely from subsidiary dividends or asset monetisation
- 3-year average ROE of -17.8% indicates persistent destruction of shareholder value
- Compounded profit has declined at -83% CAGR over 3 years, reflecting deep earnings erosion
- Low interest coverage ratio with finance costs of ₹107.85 Cr in FY26 against operating profit of only ₹105.87 Cr — operating earnings barely cover interest
- TTM sales declined 10% and stock price fell 34% over 1 year, signalling both fundamental and market weakness
- Earnings quality is poor — other income of ₹536 Cr significantly exceeds core operating profit, making profitability unsustainable without non-recurring items
- Operating profit margin remains thin at ~5.2% in FY26, leaving little cushion for input cost inflation
- Dividend yield of only 0.33% provides minimal income support for investors during the downturn
- Company might be capitalising interest costs, which could understate true operating expenses and overstate asset values
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- BRSR filed, 53% export turnover Jul 2
Sundaram Clayton filed its Business Responsibility and Sustainability Report for FY 2025-26, reporting exports at 53% of turnover and identifying GHG emission reduction and water management as key material issues.
- AGM scheduled July 28, 2026 Jul 2
The company will hold its 9th AGM via video conferencing on July 28, 2026, to approve financial statements and re-appoint auditors.
- No promoter share encumbrance Jun 17
Promoter VS Trust confirmed zero encumbrance on Sundaram Clayton shares in FY 2025-26 or earlier under SEBI regulations.
TL;DR: Recent news flow for Sundaram Clayton is purely procedural with no material positive or negative catalysts. The company maintains a healthy 53% export mix and clean promoter holding structure with no encumbrance. No operational headwinds or growth triggers are evident from current disclosures. Investors should watch the July 28 AGM for any forward guidance or capital allocation signals.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 521 | 297 | 551 | 555 | 580 | 563 | 529 | 587 | 512 | 495 | 501 | 518 | 592 |
| Expenses | 493 | 273 | 558 | 540 | 571 | 547 | 492 | 556 | 495 | 480 | 465 | 479 | 580 |
| Operating Profit | 28 | 24 | -7 | 15 | 10 | 16 | 38 | 31 | 16 | 15 | 36 | 39 | 12 |
| OPM % | 5% | 8% | -1.4% | 2.7% | 1.7% | 2.8% | 7% | 5% | 3.2% | 3% | 7% | 8% | 2% |
| Other Income | -3 | 3 | 22 | 7 | 5 | 0 | -4 | 221 | 4 | 4 | -3 | 530 | 4 |
| Interest | 21 | 11 | 24 | 22 | 26 | 26 | 27 | 24 | 26 | 27 | 29 | 26 | 21 |
| Depreciation | 37 | 21 | 43 | 39 | 38 | 40 | 45 | 49 | 46 | 51 | 49 | 60 | 48 |
| PBT | -33 | -6 | -53 | -39 | -50 | -51 | -39 | 179 | -52 | -58 | -45 | 483 | -53 |
| Tax % | 8% | 75% | 19% | 22% | 12% | 6% | 13% | 20% | 11% | 10% | 16% | 12% | 12% |
| Net Profit | -36 | -10 | -63 | -47 | -56 | -54 | -44 | 144 | -58 | -64 | -52 | 426 | -59 |
| EPS in Rs | — | -4.88 | -31.09 | -23.4 | -27.6 | -26.79 | -20.03 | 65.11 | -26.2 | -29.19 | -23.55 | 193 | -26.91 |
Profit & Loss
| Mar 2017 | Mar 2018 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|
| Sales | 14,730 | 17,903 | 1,128 | 1,692 | 2,053 | 1,415 | 2,259 | 2,026 | 2,106 |
| Expenses | 13,726 | 16,393 | 988 | 1,499 | 1,928 | 1,384 | 2,163 | 1,920 | 2,004 |
| Operating Profit | 1,004 | 1,510 | 140 | 193 | 124 | 31 | 97 | 106 | 102 |
| OPM % | 7% | 8% | 12% | 11% | 6% | 2.2% | 4.3% | 5% | 4.8% |
| Other Income | 170 | 148 | -2 | -14 | -7 | 32 | 219 | 536 | 536 |
| Interest | 88 | 372 | 47 | 46 | 60 | 57 | 104 | 108 | 103 |
| Depreciation | 377 | 447 | 80 | 131 | 144 | 103 | 173 | 206 | 208 |
| PBT | 709 | 839 | 11 | 3 | -86 | -97 | 39 | 328 | 327 |
| Tax % | 23% | 25% | 529% | 724% | 25% | 23% | 127% | 23% | — |
| Net Profit | 547 | 629 | -48 | -17 | -108 | -120 | -11 | 252 | 251 |
| EPS in Rs | — | — | — | — | — | -59.38 | -4.83 | 114 | 114 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | -9% | -98% | 4% | — |
Balance Sheet
| Mar 2017 | Mar 2018 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Equity Capital | 10 | 10 | 10 | 10 | 10 | 10 | 11 | 11 |
| Reserves | 1,857 | 2,141 | 420 | 547 | 764 | 590 | 960 | 1,284 |
| Borrowings | 1,665 | 7,593 | 941 | 990 | 1,107 | 1,426 | 1,493 | 1,298 |
| Other Liabilities | 3,759 | 4,982 | 732 | 778 | 531 | 648 | 652 | 689 |
| Total Liabilities | 7,291 | 14,726 | 2,103 | 2,325 | 2,412 | 2,674 | 3,116 | 3,282 |
| Fixed Assets | 2,943 | 3,751 | 736 | 1,390 | 1,471 | 1,474 | 2,154 | 2,211 |
| CWIP | 101 | 396 | 737 | 64 | 78 | 330 | 48 | 49 |
| Investments | 1,241 | 484 | 10 | 10 | 10 | 26 | 26 | 31 |
| Other Assets | 3,006 | 10,096 | 620 | 860 | 853 | 844 | 888 | 990 |
| Total Assets | 7,291 | 14,726 | 2,103 | 2,325 | 2,412 | 2,674 | 3,116 | 3,282 |
Cash Flow
| Mar 2017 | Mar 2018 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Operating | 838 | 324 | 111 | 105 | 126 | 46 | -45 | -4 |
| Investing | -818 | -1,379 | -46 | -99 | -186 | -278 | -261 | 376 |
| Financing | -61 | 805 | -107 | 97 | 40 | 151 | 318 | -354 |
| Net Cash Flow | -40 | -250 | -42 | 103 | -20 | -81 | 12 | 18 |
| Free Cash Flow | 80 | -954 | 64 | 5 | -61 | -227 | -490 | 249 |
| CFO/OP | 98 | 44 | 82 | 63 | 124 | 228 | 11 | 25 |
Ratios
| Mar 2017 | Mar 2018 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Debtor Days | 21 | 27 | 72 | 58 | 45 | 76 | 51 | 66 |
| Inventory Days | 55 | 44 | 202 | 165 | 133 | 179 | 115 | 164 |
| Days Payable | 83 | 94 | 179 | 154 | 129 | 214 | 102 | 163 |
| Cash Conversion Cycle | -7 | -23 | 94 | 69 | 49 | 40 | 64 | 67 |
| Working Capital Days | -20 | -35 | -41 | -24 | -15 | -132 | -50 | -33 |
| ROCE % | — | 16% | — | 4% | -1% | -2% | -2% | -3% |
Documents
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Company Information
Incorporated in 1962, Sundaram Clayton Ltd is in the business of manufacturing automotive components[1]