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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sundaram Brake Linings Ltd

About the Company - Sundaram Brake Linings Ltd

Sundaram Brake Lining Ltd. is a Public Limited Listed company incorporated on 05/09/1974 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L34300TN1974PLC006703 and registration number is 006703. Currently Company is involved in the business activities of Manufacture of diverse parts and accessories for motor vehecles sucs as brakes, gearboxes, axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes, catalysers, clutches, steering wheels, steering columns and steering boxes etc.. Company’s Total Operating Revenue is Rs. 295.20 Cr. and Equity Capital is Rs. 3.93 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Susp. & Braking - OthersPadi, Chennai (Madras) Tamil Nadu 600050sbl@tvssbl.com
http://www.tvsbrakelinings.com
Management
NamePosition Held
Mr. Krishna MaheshManaging Director
Mr. P S RamanDirector
Mr. G R ChandramouliDirector
Mr. K S D SambasivamDirector
Ms. Sandhya SubramanyamDirector
Ms. Shobhana RamachandranDirector
Ms. Shripriya Mahesh RamananDirector
Mr. S VenkataramanDirector

Sundaram Brake Lining Ltd. Share Price Update

Share PriceValue
Today₹692.00
Previous Day₹657.65

Basic Stock Data of Sundaram Brake Linings Ltd

Market Cap 299 Cr.
Current Price 761
High / Low788/271
Stock P/E25.6
Book Value 233
Dividend Yield0.00 %
ROCE0.57 %
ROE5.43 %
Face Value 10.0

Data Source: screener.in

Competitors of Sundaram Brake Linings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Rane Brake Lining Ltd 615 Cr. 795945/58516.6 3323.15 %17.7 %13.3 % 10.0
Industry Average615 Cr79516.63323.15%17.7%13.3%10

Sundaram Brake Linings Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales68.8576.2264.2468.9080.8381.2489.0086.7887.2991.7793.1785.3684.80
Expenses66.0373.2364.6168.3781.1778.5789.3388.6187.9287.3286.8980.2778.84
Operating Profit2.822.99-0.370.53-0.342.67-0.33-1.83-0.634.456.285.095.96
OPM %4.10%3.92%-0.58%0.77%-0.42%3.29%-0.37%-2.11%-0.72%4.85%6.74%5.96%7.03%
Other Income0.330.760.780.710.703.261.580.380.390.420.390.860.06
Interest0.310.240.290.380.490.650.750.821.111.041.010.880.70
Depreciation1.521.431.431.471.481.611.471.491.531.621.541.591.62
Profit before tax1.322.08-1.31-0.61-1.613.67-0.97-3.76-2.882.214.123.483.70
Tax %-299.24%13.94%0.00%9.84%0.00%2.72%54.64%3.19%0.69%2.26%14.81%18.10%14.86%
Net Profit5.271.79-1.32-0.55-1.623.57-0.44-3.64-2.862.163.502.863.16
EPS in Rs13.394.55-3.35-1.40-4.129.07-1.12-9.25-7.275.498.907.278.03

Sundaram Brake Linings Ltd Quarterly Chart

Sundaram Brake Linings Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales256232247237228228247286258237295355358
Expenses235226241236221219240275252229292352342
Operating Profit2065179711683315
OPM %8%2%2%0%3%4%3%4%2%3%1%1%4%
Other Income-10161223351532
Interest4334332322354
Depreciation8887654556666
Profit before tax-1-40-90146320-57
Tax %148%-7%4,442%-63%232%-23%-0%-9%16%-186%38%11%
Net Profit1-4-5-15-0247360-56
EPS in Rs1.42-11.21-13.27-36.98-1.044.479.5617.926.4015.250.20-12.1514.39
Dividend Payout %211%0%0%0%0%0%0%0%0%0%0%0%

Sundaram Brake Linings Ltd Profit & Loss Yearly Chart

Sundaram Brake Linings Ltd Growth

Compounded Sales Growth
10 Years:4%
5 Years:8%
3 Years:11%
TTM:3%
Compounded Profit Growth
10 Years:-1%
5 Years:%
3 Years:%
TTM:310%
Stock Price CAGR
10 Years:16%
5 Years:20%
3 Years:29%
1 Year:155%
Return on Equity
10 Years:-1%
5 Years:2%
3 Years:0%
Last Year:-5%

Sundaram Brake Linings Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital4444444444444
Reserves92888366666771788086878188
Borrowings41414651483330332430425037
Other Liabilities40435056545665737162657163
Total Liabilities177175183177172160170189179182197206192
Fixed Assets88868781777168676867686766
CWIP0000000033111
Investments1000000011111
Other Assets888995969489103122107112127137124
Total Assets177175183177172160170189179182197206192

Sundaram Brake Linings Ltd Reserves and Borrowings Chart

Sundaram Brake Linings Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 848-18194317-4-21
Cash from Investing Activity -9-4-9-2-2-11-4-6-4-8-6
Cash from Financing Activity -2-422-9-18-52-125105
Net Cash Flow-4-41-1-20-00-0-30-0

Sundaram Brake Linings Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days7581858385707879741008071
Inventory Days50806690851051009811210310795
Days Payable547466106119899184991069387
Cash Conversion Cycle718685675187879387979379
Working Capital Days657868616567737372878573
ROCE %11%-1%-0%-4%3%4%6%8%5%3%0%-1%

Sundaram Brake Linings Ltd Financial Efficiency Indicators Chart

Sundaram Brake Linings Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters65.54%65.54%65.54%65.54%65.54%65.54%65.54%65.54%65.54%65.54%65.54%65.54%
Public34.46%34.46%34.46%34.46%34.46%34.46%34.47%34.46%34.45%34.46%34.45%34.46%
No. of Shareholders8,5689,9099,1098,8978,7468,6158,6138,6358,5578,4848,1877,790

Sundaram Brake Linings Ltd Shareholding Pattern Chart

No. of Sundaram Brake Linings Ltd Shareholders

This stock is not held by any mutual fund

Sundaram Brake Linings Ltd ROCE Trend

Sundaram Brake Linings Ltd EPS Trend

Sundaram Brake Linings Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-12.150.2015.256.4017.93
Diluted EPS (Rs.)-12.150.2015.256.4017.93
Cash EPS (Rs.)3.3715.4329.5520.1830.50
Book Value[Excl.RevalReserv]/Share (Rs.)217.07230.34229.18213.41208.37
Book Value[Incl.RevalReserv]/Share (Rs.)217.07230.34229.18213.41208.37
Revenue From Operations / Share (Rs.)901.84750.27601.95656.08727.54
PBDIT / Share (Rs.)11.2514.4022.3225.3033.26
PBIT / Share (Rs.)-4.27-0.828.0311.5120.69
PBT / Share (Rs.)-13.720.335.337.6316.50
Net Profit / Share (Rs.)-12.150.1915.256.4017.93
PBDIT Margin (%)1.241.913.703.854.57
PBIT Margin (%)-0.47-0.101.331.752.84
PBT Margin (%)-1.520.040.881.162.26
Net Profit Margin (%)-1.340.022.530.972.46
Return on Networth / Equity (%)-5.590.086.652.998.60
Return on Capital Employeed (%)-1.67-0.313.094.277.84
Return On Assets (%)-2.320.033.291.403.73
Long Term Debt / Equity (X)0.050.000.010.000.00
Total Debt / Equity (X)0.580.450.280.280.40
Asset Turnover Ratio (%)1.761.561.311.401.60
Current Ratio (X)1.241.281.351.421.33
Quick Ratio (X)0.710.770.920.900.87
Inventory Turnover Ratio (X)4.174.093.213.244.10
Interest Coverage Ratio (X)1.193.148.256.517.93
Interest Coverage Ratio (Post Tax) (X)-0.28-0.206.642.655.28
Enterprise Value (Cr.)161.07175.13164.7582.81156.82
EV / Net Operating Revenue (X)0.450.590.690.320.54
EV / EBITDA (X)36.3930.9018.758.3211.98
MarketCap / Net Operating Revenue (X)0.310.450.580.240.44
Price / BV (X)1.301.481.540.741.55
Price / Net Operating Revenue (X)0.310.450.580.240.44
EarningsYield-0.040.000.040.040.05

Sundaram Brake Linings Ltd Profitability Ratios (%)

Sundaram Brake Linings Ltd Liquidity Ratios

Sundaram Brake Linings Ltd Liquidity Ratios (%)

Sundaram Brake Linings Ltd Interest Coverage Ratios (X)

Sundaram Brake Linings Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sundaram Brake Linings Ltd

Fair Value: ₹330.37

The stock is overvalued by 56.59% compared to the current price ₹761

*Investments are subject to market risks

Strength and Weakness of Sundaram Brake Linings Ltd

StrengthWeakness
  1. The company has higher reserves (79.46 cr) compared to borrowings (38.92 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (266.46 cr) and profit (0.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 7.03 and average Dividend Yield of 0.56%.
  2. The stock has a low average ROCE of 2.83%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 72.25, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 81.92, which may not be favorable.

Should I Buy Sundaram Brake Linings Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sundaram Brake Linings Ltd:
    1. Net Profit Margin: -1.34%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: -1.67% (Industry Average ROCE: 17.7%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): -0.28
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.71
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 23.9 (Industry average Stock P/E: 17.1)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.58
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sundaram Brake Linings Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE