Sundram Fasteners
Sundram Fasteners
AutomobilesKey Fundamentals
SmallcapAuto ComponentsAutomobilesTapetide Score
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Key Insights
Strengths
2- Company has reduced debt.
- Company has been maintaining a healthy dividend payout of 28.0%
Weaknesses
1- The company has delivered a poor sales growth of 11.5% over past five years.
Growth Rate
AI Analysis — Bull vs Bear
Sundram Fasteners has a market capitalisation of about Rs 24,959 crore and trades at a P/E of 40.1x and a P/B of 5.76x. Its 10-year ROE is 18%, but this has come down to 15% over the last 3 years. Profit growth has picked up recently (14% TTM against a 3-year CAGR of 7%), yet the stock has returned -2% annualised over 3 years, even though it is up 19% over the last year.
- Earnings momentum is improving: TTM profit growth of 14% is double the 3-year profit CAGR of 7%, and TTM sales growth of 10% is well above the 3-year sales CAGR of 4%.
- Returns have been consistent over time, with a 10-year average ROE of 18%, a 5-year average of 16% and 15% last year. The company has not had loss-making or very low-return phases over the decade.
- The balance sheet is getting stronger because the company has reduced debt. This lowers financial risk in a cyclical auto-components business.
- Shareholders receive regular payouts, with a dividend payout ratio of 28.0% and a dividend yield of 0.68%. This still leaves most earnings available for reinvestment.
- Over the long term, profit has grown faster than sales: a 10-year profit CAGR of 12% against a 10-year sales CAGR of 7%. This points to margin improvement and operating leverage.
- Long-run shareholder returns are solid, with a 10-year stock CAGR of 14%. The 1-year return of 19% suggests sentiment is recovering after a weak 3-year period.
- Over 5 years, the company has grown at a reasonable pace, with a sales CAGR of 12% and a profit CAGR of 11%. This shows it can take advantage of good demand cycles.
- The valuation is demanding. A P/E of 40.1x is high for a business whose 3-year profit CAGR is only 7%, which leaves little room for earnings disappointments.
- A P/B of 5.76x combined with an ROE of about 15% gives an earnings yield on book value of roughly 2.6%. The market is already pricing in a lot of future growth.
- Returns on equity are trending down, from an 18% 10-year average to 16% over 5 years and 15% over 3 years and last year. Capital efficiency is slowly weakening.
- Near-term growth has been weak: sales grew at only 4% CAGR over 3 years and profit at 7%. The 5-year sales growth of about 11.5-12% is also flagged as poor.
- The stock has returned -2% annualised over 3 years and only 5% annualised over 5 years. Medium-term holders have seen little or no return despite the 19% gain in the last year.
- Long-term sales growth has been modest, with a 10-year sales CAGR of 7%. This limits how much operating leverage can keep supporting profit growth.
- The dividend yield of 0.68% gives little income support at the current valuation, so returns depend mainly on the stock price going up.
- As a Consumer Discretionary auto-components supplier, the company is exposed to auto-cycle and export-demand swings. The 3-year sales CAGR of 4% shows how sharply growth can slow during a downturn.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Promoter reclassification approved by exchanges Sep 24
NSE and BSE approved Sundram Fasteners' request to reclassify three promoter group entities as public shareholders under Regulation 31A of SEBI LODR. This is a procedural change to the shareholding structure and does not affect operations or the core promoter's control.
TL;DR: The only news here is a regulatory housekeeping item: three promoter group entities were reclassified as public shareholders, which has little effect on fundamentals. There were no headwinds or positives on earnings, orders, margins or demand to judge momentum by, so there isn't enough here to say whether the trend is improving or getting worse. The main things to watch are quarterly results, export demand from global auto and EV customers, and raw material costs like steel, since these will shape the outlook.
Quarterly Results
| Particulars | 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 | 1,411 | 1,422 | 1,367 | 1,466 | 1,498 | 1,486 | 1,441 | 1,531 | 1,533 | 1,521 | 1,541 | 1,693 | 1,846 |
| Expenses | 1,184 | 1,191 | 1,166 | 1,238 | 1,251 | 1,241 | 1,213 | 1,306 | 1,286 | 1,269 | 1,301 | 1,437 | 1,560 |
| Operating Profit | 226 | 231 | 201 | 228 | 247 | 245 | 228 | 225 | 247 | 252 | 240 | 256 | 286 |
| OPM % | 16% | 16% | 15% | 16% | 16% | 16% | 16% | 15% | 16% | 17% | 16% | 15% | 16% |
| Other Income | 5 | 7 | 31 | 11 | 5 | 13 | 3 | 7 | 20 | 21 | -1 | 27 | 9 |
| Interest | 10 | 7 | 7 | 8 | 7 | 9 | 8 | 10 | 9 | 11 | 8 | 10 | 9 |
| Depreciation | 52 | 54 | 54 | 53 | 54 | 56 | 56 | 58 | 59 | 60 | 57 | 60 | 63 |
| PBT | 169 | 176 | 172 | 178 | 192 | 193 | 166 | 164 | 199 | 202 | 174 | 213 | 224 |
| Tax % | 24% | 24% | 25% | 25% | 26% | 26% | 21% | 24% | 26% | 24% | 25% | 24% | 25% |
| Net Profit | 129 | 133 | 129 | 134 | 143 | 144 | 131 | 124 | 148 | 153 | 131 | 161 | 169 |
| EPS in Rs | 6.07 | 6.28 | 6.12 | 6.36 | 6.75 | 6.78 | 6.2 | 5.92 | 7.06 | 7.18 | 6.21 | 7.68 | 8.01 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 3,156 | 3,255 | 3,303 | 3,855 | 4,558 | 3,723 | 3,644 | 4,902 | 5,663 | 5,666 | 5,955 | 6,289 | 6,602 |
| Expenses | 2,781 | 3,012 | 2,712 | 3,173 | 3,756 | 3,130 | 2,980 | 4,101 | 4,809 | 4,777 | 5,010 | 5,289 | 5,566 |
| Operating Profit | 375 | 243 | 590 | 681 | 802 | 594 | 664 | 801 | 853 | 889 | 945 | 999 | 1,035 |
| OPM % | 12% | 7% | 18% | 18% | 18% | 16% | 18% | 16% | 15% | 16% | 16% | 16% | 16% |
| Other Income | 17 | 85 | 12 | 22 | 26 | 27 | 27 | 39 | 45 | 52 | 27 | 63 | 55 |
| Interest | 94 | 73 | 39 | 37 | 46 | 58 | 26 | 29 | 40 | 32 | 34 | 38 | 38 |
| Depreciation | 116 | 116 | 104 | 112 | 129 | 170 | 180 | 191 | 198 | 213 | 224 | 236 | 240 |
| PBT | 182 | 139 | 459 | 554 | 652 | 393 | 486 | 621 | 661 | 696 | 715 | 788 | 812 |
| Tax % | 28% | 10% | 26% | 30% | 30% | 17% | 25% | 26% | 24% | 24% | 24% | 25% | — |
| Net Profit | 132 | 125 | 338 | 388 | 459 | 327 | 363 | 462 | 500 | 526 | 542 | 593 | 614 |
| EPS in Rs | 6.25 | 6 | 16.06 | 18.4 | 21.77 | 15.46 | 17.09 | 21.74 | 23.54 | 24.83 | 25.66 | 28.13 | 29.08 |
| Div. Payout % | 28% | 36% | 28% | 25% | 23% | 27% | 27% | 30% | 37% | 28% | 28% | 28% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 21 | 21 | 21 | 21 | 21 | 21 | 21 | 21 | 21 | 21 | 21 | 21 |
| Reserves | 858 | 933 | 1,215 | 1,510 | 1,849 | 1,975 | 2,326 | 2,600 | 2,995 | 3,400 | 3,789 | 4,254 |
| Borrowings | 874 | 602 | 701 | 700 | 995 | 917 | 710 | 772 | 730 | 647 | 823 | 625 |
| Other Liabilities | 588 | 646 | 591 | 756 | 838 | 636 | 872 | 891 | 878 | 921 | 893 | 1,036 |
| Total Liabilities | 2,341 | 2,202 | 2,527 | 2,987 | 3,703 | 3,549 | 3,929 | 4,284 | 4,624 | 4,988 | 5,527 | 5,936 |
| Fixed Assets | 1,019 | 917 | 1,031 | 1,156 | 1,621 | 1,910 | 1,921 | 1,948 | 2,029 | 2,099 | 2,253 | 2,499 |
| CWIP | 22 | 54 | 69 | 111 | 96 | 95 | 119 | 117 | 65 | 164 | 196 | 112 |
| Investments | 7 | 38 | 32 | 70 | 68 | 38 | 64 | 77 | 102 | 137 | 120 | 115 |
| Other Assets | 1,294 | 1,193 | 1,395 | 1,650 | 1,918 | 1,506 | 1,825 | 2,142 | 2,428 | 2,587 | 2,957 | 3,210 |
| Total Assets | 2,341 | 2,202 | 2,527 | 2,987 | 3,703 | 3,549 | 3,929 | 4,284 | 4,624 | 4,988 | 5,527 | 5,936 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 106 | 595 | 244 | 456 | 457 | 718 | 454 | 401 | 469 | 589 | 423 | 837 |
| Investing | -127 | -179 | -237 | -296 | -595 | -320 | -200 | -203 | -234 | -389 | -381 | -357 |
| Financing | 20 | -415 | 6 | -167 | 127 | -377 | -270 | -186 | -214 | -235 | -28 | -436 |
| Net Cash Flow | -1 | 1 | 12 | -6 | -11 | 21 | -16 | 12 | 21 | -35 | 14 | 44 |
| Free Cash Flow | -27 | 407 | 8 | 156 | -136 | 396 | 266 | 202 | 241 | 191 | 29 | 467 |
| CFO/OP | 45 | 266 | 60 | 85 | 78 | 139 | 85 | 71 | 73 | 83 | 64 | 101 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 57 | 61 | 72 | 75 | 71 | 64 | 89 | 75 | 74 | 80 | 89 | 89 |
| Inventory Days | 149 | 117 | 132 | 128 | 127 | 136 | 172 | 145 | 135 | 147 | 166 | 175 |
| Days Payable | 84 | 93 | 103 | 110 | 96 | 92 | 151 | 101 | 79 | 83 | 78 | 91 |
| Cash Conversion Cycle | 122 | 85 | 101 | 93 | 103 | 108 | 110 | 119 | 130 | 144 | 177 | 173 |
| Working Capital Days | 5 | 9 | 14 | 31 | 29 | 24 | 48 | 49 | 57 | 69 | 78 | 86 |
| ROCE % | 17% | 20% | 29% | 28% | 27% | 16% | 17% | 20% | 19% | 19% | 17% | 18% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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Documents
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Company Information
Sundaram fasteners ltd, a part of the TVS Group of Companies, is engaged in manufacturing critical, high precision components such as fasteners, power train components etc for the automotive, infrastructure, windmill, and aviation sectors. [1]
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