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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sundram Fasteners Ltd

About the Company - Sundram Fasteners Ltd

Sundram Fasteners Ltd. is a Public Limited Listed company incorporated on 10/12/1962 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L35999TN1962PLC004943 and registration number is 004943. Currently Company is involved in the business activities of Manufacture of fabricated metal products, except machinery and equipment. Company’s Total Operating Revenue is Rs. 4172.57 Cr. and Equity Capital is Rs. 21.01 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Engine Parts98A, VII Floor, Dr Radhakrishnan Salai, Chennai (Madras) Tamil Nadu 600004investorshelpdesk@sfl.co.in
http://www.sundram.com
Management
NamePosition Held
Mr. Suresh KrishnaChairman & Non-Exe.Director
Ms. Arathi KrishnaManaging Director
Ms. Arundathi KrishnaJoint Managing Director
Ms. Preethi KrishnaNon Exe.Non Ind.Director
Mr. B MuthuramanIndependent Director
Mr. Heramb R HajarnavisIndependent Director
Dr. Nirmala LakshmanIndependent Director
Mr. S MahalingamIndependent Director

Sundram Fasteners Ltd. Share Price Update

Share PriceValue
Today₹1,087.00
Previous Day₹1,096.35

Basic Stock Data of Sundram Fasteners Ltd

Market Cap 22,726 Cr.
Current Price 1,082
High / Low1,341/952
Stock P/E44.2
Book Value 153
Dividend Yield0.60 %
ROCE19.3 %
ROE17.4 %
Face Value 1.00

Data Source: screener.in

Competitors of Sundram Fasteners Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Talbros Automotive Components Ltd 1,756 Cr. 284348/76.022.8 72.90.21 %19.2 %16.5 % 2.00
Rane Engine Valve Ltd 262 Cr. 362506/19518.9 1560.00 %7.48 %7.20 % 10.0
Autoline Industries Ltd 555 Cr. 142165/60.165.2 20.60.00 %6.83 %1.96 % 10.0
Sintercom India Ltd 353 Cr. 128140/95.2360 36.30.00 %3.65 %0.07 % 10.0
Shriram Pistons & Rings Ltd 7,404 Cr. 1,6811,867/49118.0 3940.29 %24.7 %20.8 % 10.0
Industry Average2,066.00 Cr519.4096.98135.960.10%12.37%9.31%8.40

Sundram Fasteners Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,1091,2731,1121,2421,2081,3401,4101,4021,4031,4481,4111,4221,367
Expenses8781,0369121,0241,0171,1481,1851,1971,2071,2211,1841,1911,166
Operating Profit230237200218191192226205196227226231201
OPM %21%19%18%18%16%14%16%15%14%16%16%16%15%
Other Income104172101012102045731
Interest5786789810131077
Depreciation45454747475049495050525454
Profit before tax190189163167147144180157156168169176172
Tax %24%25%26%26%25%25%23%26%25%24%24%24%25%
Net Profit144141120124110107138117118127129133129
EPS in Rs6.796.705.695.835.145.076.475.495.576.016.076.286.12

Sundram Fasteners Ltd Quarterly Chart

Sundram Fasteners Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,7702,6512,7363,1563,2553,3033,8554,5583,7233,6444,9025,6635,648
Expenses2,4652,4012,4472,7813,0122,7123,1733,7563,1302,9804,1014,8094,762
Operating Profit305250289375243590681802594664801853885
OPM %11%9%11%12%7%18%18%18%16%18%16%15%16%
Other Income30714917851222262727394546
Interest98906894733937465826294037
Depreciation8494102116116104112129170180191198210
Profit before tax153138169182139459554652393486621661685
Tax %34%32%28%28%10%26%30%30%17%25%26%24%
Net Profit10193121132125338388459327363462500519
EPS in Rs4.744.425.756.256.0016.0618.4021.7715.4617.0921.7423.5424.48
Dividend Payout %30%32%30%28%36%28%25%23%27%27%30%37%

Sundram Fasteners Ltd Profit & Loss Yearly Chart

Sundram Fasteners Ltd Growth

Compounded Sales Growth
10 Years:8%
5 Years:8%
3 Years:15%
TTM:2%
Compounded Profit Growth
10 Years:19%
5 Years:5%
3 Years:15%
TTM:8%
Stock Price CAGR
10 Years:37%
5 Years:17%
3 Years:16%
1 Year:13%
Return on Equity
10 Years:20%
5 Years:19%
3 Years:17%
Last Year:17%

Sundram Fasteners Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital21212121212121212121212121
Reserves6216857808589331,2151,5101,8491,9752,3262,6002,9953,193
Borrowings893858733874602701700995917710772730593
Other Liabilities504506629588646591756838636872891878886
Total Liabilities2,0392,0692,1642,3412,2022,5272,9873,7033,5493,9294,2844,6244,694
Fixed Assets8499081,0071,0199171,0311,1561,6211,9101,9211,9482,0291,980
CWIP523440225469111969511911765133
Investments10910738327068386477102128
Other Assets1,1271,1191,1061,2941,1931,3951,6501,9181,5061,8252,1422,4282,454
Total Assets2,0392,0692,1642,3412,2022,5272,9873,7033,5493,9294,2844,6244,694

Sundram Fasteners Ltd Reserves and Borrowings Chart

Sundram Fasteners Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 206274427106595244456457718454401469
Cash from Investing Activity -182-106-180-127-179-237-296-595-320-200-203-234
Cash from Financing Activity -20-163-24420-4156-167127-377-270-186-214
Net Cash Flow464-1112-6-1121-161221

Sundram Fasteners Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days646865576172757164897574
Inventory Days124132135149117132128127136172145135
Days Payable65751048493103110969215110179
Cash Conversion Cycle123125961228510193103108110119130
Working Capital Days717860685366678075918894
ROCE %17%14%15%17%20%29%28%27%16%17%20%19%

Sundram Fasteners Ltd Financial Efficiency Indicators Chart

Sundram Fasteners Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters49.53%49.53%49.53%49.53%49.69%49.69%48.51%48.51%48.51%48.51%48.51%48.51%
FIIs10.88%11.14%11.33%11.73%11.70%11.74%11.75%11.67%11.65%11.95%12.83%12.51%
DIIs17.63%17.37%17.61%17.48%17.68%17.71%18.72%18.76%18.81%18.64%17.89%18.47%
Public21.95%21.95%21.53%21.25%20.93%20.86%21.03%21.04%21.03%20.91%20.76%20.51%
No. of Shareholders59,60068,13770,59265,77965,84766,18066,80266,61169,59270,04272,80873,815

Sundram Fasteners Ltd Shareholding Pattern Chart

No. of Sundram Fasteners Ltd Shareholders

Sundram Fasteners Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Mid-Cap Opportunities Fund - Regular Plan98059372.191224.66
Kotak Emerging Equity Fund - Regular Plan27597020.89344.66
Franklin India Prima Fund15434931.95192.77
Tata Large & Mid Cap Fund - Regular Plan14568772.94181.95
Tata Large & Mid Cap Fund - Regular Plan14568772.94181.95
Canara Robeco Emerging Equities11470000.72143.25
UTI Mid Cap Fund11393911.45142.3
ICICI Prudential ELSS Tax Saver Fund10691501.08133.53
HSBC Midcap Fund10072651.37125.8
Nippon India Growth Fund9494470.5118.58

Sundram Fasteners Ltd ROCE Trend

Sundram Fasteners Ltd EPS Trend

Sundram Fasteners Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)23.5421.7417.1015.4621.77
Diluted EPS (Rs.)23.5421.7417.1015.4621.77
Cash EPS (Rs.)33.2431.0625.8223.6327.97
Book Value[Excl.RevalReserv]/Share (Rs.)144.41125.47112.2595.4089.37
Book Value[Incl.RevalReserv]/Share (Rs.)144.41125.47112.2595.4089.37
Revenue From Operations / Share (Rs.)269.53233.32173.46177.21216.94
PBDIT / Share (Rs.)42.7640.0232.9129.5639.37
PBIT / Share (Rs.)33.3330.9324.3621.4733.24
PBT / Share (Rs.)31.4529.5723.1218.7131.05
Net Profit / Share (Rs.)23.8121.9817.2615.5421.85
NP After MI And SOA / Share (Rs.)23.5521.7417.1015.4621.77
PBDIT Margin (%)15.8617.1518.9716.6718.14
PBIT Margin (%)12.3613.2514.0412.1115.32
PBT Margin (%)11.6612.6713.3210.5514.31
Net Profit Margin (%)8.839.429.958.7710.06
NP After MI And SOA Margin (%)8.739.319.858.7210.03
Return on Networth / Equity (%)16.4017.4215.3016.2724.46
Return on Capital Employeed (%)20.8921.4218.3718.1329.22
Return On Assets (%)10.6910.669.139.1512.35
Long Term Debt / Equity (X)0.040.090.110.160.18
Total Debt / Equity (X)0.230.280.250.420.52
Asset Turnover Ratio (%)1.181.090.870.901.25
Current Ratio (X)1.771.581.461.281.29
Quick Ratio (X)1.040.920.860.730.80
Inventory Turnover Ratio (X)2.872.792.252.183.21
Dividend Payout Ratio (NP) (%)23.6745.317.6046.8821.58
Dividend Payout Ratio (CP) (%)16.9031.965.0630.7816.84
Earning Retention Ratio (%)76.3354.6992.4053.1278.42
Cash Earning Retention Ratio (%)83.1068.0494.9469.2283.16
Interest Coverage Ratio (X)22.6329.2726.4610.7317.98
Interest Coverage Ratio (Post Tax) (X)13.6117.0814.886.6410.98
Enterprise Value (Cr.)21199.9019559.3517395.106927.5812852.23
EV / Net Operating Revenue (X)3.743.994.771.862.82
EV / EBITDA (X)23.6023.2625.1511.1615.54
MarketCap / Net Operating Revenue (X)3.633.854.621.642.61
Retention Ratios (%)76.3254.6892.3953.1178.41
Price / BV (X)6.827.207.173.076.36
Price / Net Operating Revenue (X)3.633.854.621.642.61
EarningsYield0.020.020.020.050.03

Sundram Fasteners Ltd Profitability Ratios (%)

Sundram Fasteners Ltd Liquidity Ratios

Sundram Fasteners Ltd Liquidity Ratios (%)

Sundram Fasteners Ltd Interest Coverage Ratios (X)

Sundram Fasteners Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sundram Fasteners Ltd

Fair Value: ₹1183.75

The stock is undervalued by 9.40% compared to the current price ₹1082

*Investments are subject to market risks

Strength and Weakness of Sundram Fasteners Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 19.92%, which is a positive sign.
  2. The company has higher reserves (1,656.92 cr) compared to borrowings (775.23 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.23 cr) and profit (407.08 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 28.67 and average Dividend Yield of 13.42%.
  2. The stock has a high average Working Capital Days of 74.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 109.58, which may not be favorable.

Should I Buy Sundram Fasteners Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Sundram Fasteners Ltd:
    1. Net Profit Margin: 8.83% (Higher values are generally favorable)
      • 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: 20.89% (Industry Average ROCE: 12.37%)
      • 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): 13.61 (Higher values, preferably > 2, are recommended)
      • 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: 1.04 (Higher values, preferably > 1, are recommended)
      • 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: 45.3 (Industry average Stock P/E: 99.08)
      • 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: 0.23 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

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 Sundram Fasteners 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