Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of Sundram Fasteners Ltd

Basic Stock Data

Last Updated: July 24, 2024, 10:35 pm

Market Cap 29,464 Cr.
Current Price 1,404
High / Low1,506/1,002
Stock P/E56.4
Book Value 163
Dividend Yield0.49 %
ROCE18.5 %
ROE16.2 %
Face Value 1.00
PEG Ratio5.67

Data Source: screener.in

Competitors of Sundram Fasteners Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Talbros Automotive Components Ltd 2,300 Cr. 372396/16829.4 87.00.19 %21.6 %17.3 % 2.00
Sundram Fasteners Ltd 29,464 Cr. 1,4041,506/1,00256.4 1630.49 %18.5 %16.2 % 1.00
Sintercom India Ltd 354 Cr. 129143/121308 36.60.00 %4.59 %1.15 % 10.0
Shriram Pistons & Rings Ltd 8,279 Cr. 1,8802,206/94918.3 4370.80 %28.3 %25.4 % 10.0
Rane Engine Valve Ltd 288 Cr. 399506/27619.3 1671.25 %13.2 %13.7 % 10.0
Industry Average14,687.00 Cr4,726.5061.16635.701.06%17.59%15.76%7.00

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales1,2731,1121,2421,2081,3401,4101,4021,4031,4481,4111,4221,3671,466
Expenses1,0369121,0241,0171,1481,1851,1971,2071,2211,1841,1911,1661,238
Operating Profit237200218191192226205196227226231201228
OPM %19%18%18%16%14%16%15%14%16%16%16%15%16%
Other Income417210101210204573111
Interest7867898101310778
Depreciation45474747504949505052545453
Profit before tax189163167147144180157156168169176172178
Tax %25%26%26%25%25%23%26%25%24%24%24%25%25%
Net Profit141120124110107138117118127129133129134
EPS in Rs6.705.695.835.145.076.475.495.576.016.076.286.126.36

Last Updated: July 13, 2024, 8:47 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 25, 2024, 10:52 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2,6512,7363,1563,2553,3033,8554,5583,7233,6444,9025,6635,666
Expenses2,4012,4472,7813,0122,7123,1733,7563,1302,9804,1014,8094,777
Operating Profit250289375243590681802594664801853889
OPM %9%11%12%7%18%18%18%16%18%16%15%16%
Other Income714917851222262727394552
Interest906894733937465826294032
Depreciation94102116116104112129170180191198213
Profit before tax138169182139459554652393486621661696
Tax %32%28%28%10%26%30%30%17%25%26%24%24%
Net Profit93121132125338388459327363462500526
EPS in Rs4.425.756.256.0016.0618.4021.7715.4617.0921.7423.5424.83
Dividend Payout %32%30%28%36%28%25%23%27%27%30%37%28%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)30.11%9.09%-5.30%170.40%14.79%18.30%-28.76%11.01%27.27%8.23%5.20%
Change in YoY Net Profit Growth (%)0.00%-21.02%-14.39%175.70%-155.61%3.51%-47.06%39.77%16.26%-19.05%-3.03%

Growth

Compounded Sales Growth
10 Years:8%
5 Years:4%
3 Years:16%
TTM:0%
Compounded Profit Growth
10 Years:16%
5 Years:3%
3 Years:14%
TTM:7%
Stock Price CAGR
10 Years:30%
5 Years:26%
3 Years:24%
1 Year:16%
Return on Equity
10 Years:20%
5 Years:17%
3 Years:17%
Last Year:16%

Last Updated: July 25, 2024, 6:18 am

Balance Sheet

Last Updated: July 10, 2024, 3:04 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital212121212121212121212121
Reserves6857808589331,2151,5101,8491,9752,3262,6002,9953,400
Borrowings858733874602701700995917710772730647
Other Liabilities506629588646591756838636872891878921
Total Liabilities2,0692,1642,3412,2022,5272,9873,7033,5493,9294,2844,6244,989
Fixed Assets9081,0071,0199171,0311,1561,6211,9101,9211,9482,0292,100
CWIP3440225469111969511911765164
Investments910738327068386477102137
Other Assets1,1191,1061,2941,1931,3951,6501,9181,5061,8252,1422,4282,588
Total Assets2,0692,1642,3412,2022,5272,9873,7033,5493,9294,2844,6244,989

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 274427106595244456457718454401469589
Cash from Investing Activity -106-180-127-179-237-296-595-320-200-203-234-389
Cash from Financing Activity -163-24420-4156-167127-377-270-186-214-235
Net Cash Flow64-1112-6-1121-161221-35

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-608.00-444.00-499.00-359.00-111.00-19.00-193.00-323.00-46.0029.00123.00240.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters49.53%49.53%49.53%49.69%49.69%48.51%48.51%48.51%48.51%48.51%48.51%48.51%
FIIs11.14%11.33%11.73%11.70%11.74%11.75%11.67%11.65%11.95%12.83%12.51%12.59%
DIIs17.37%17.61%17.48%17.68%17.71%18.72%18.76%18.81%18.64%17.89%18.47%18.63%
Public21.95%21.53%21.25%20.93%20.86%21.03%21.04%21.03%20.91%20.76%20.51%20.26%
No. of Shareholders68,13770,59265,77965,84766,18066,80266,61169,59270,04272,80873,81571,610

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan9,805,9372.191224.661,139,3912024-07-24760.63%
Kotak Emerging Equity Fund - Regular Plan2,759,7020.89344.661,139,3912024-07-24142.21%
Franklin India Prima Fund1,543,4931.95192.771,139,3912024-07-2435.47%
Tata Large & Mid Cap Fund - Regular Plan1,456,8772.94181.951,139,3912024-07-2427.86%
Tata Large & Mid Cap Fund - Regular Plan1,456,8772.94181.951,139,3912024-07-2427.86%
Canara Robeco Emerging Equities1,147,0000.72143.251,139,3912024-07-240.67%
UTI Mid Cap Fund1,139,3911.45142.31,139,3912024-07-240%
ICICI Prudential ELSS Tax Saver Fund1,069,1501.08133.531,139,3912024-07-24-6.16%
HSBC Midcap Fund1,007,2651.37125.81,139,3912024-07-24-11.6%
Nippon India Growth Fund949,4470.5118.581,139,3912024-07-24-16.67%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)24.8323.5421.7417.1015.46
Diluted EPS (Rs.)24.8323.5421.7417.1015.46
Cash EPS (Rs.)35.1733.2431.0625.8223.63
Book Value[Excl.RevalReserv]/Share (Rs.)163.79144.41125.47112.2595.40
Book Value[Incl.RevalReserv]/Share (Rs.)163.79144.41125.47112.2595.40
Revenue From Operations / Share (Rs.)269.70269.53233.32173.46177.21
PBDIT / Share (Rs.)44.7842.7640.0232.9129.56
PBIT / Share (Rs.)34.6333.3330.9324.3621.47
PBT / Share (Rs.)33.1131.4529.5723.1218.71
Net Profit / Share (Rs.)25.0223.8121.9817.2615.54
NP After MI And SOA / Share (Rs.)24.8323.5521.7417.1015.46
PBDIT Margin (%)16.6015.8617.1518.9716.67
PBIT Margin (%)12.8312.3613.2514.0412.11
PBT Margin (%)12.2711.6612.6713.3210.55
Net Profit Margin (%)9.278.839.429.958.77
NP After MI And SOA Margin (%)9.208.739.319.858.72
Return on Networth / Equity (%)15.2516.4017.4215.3016.27
Return on Capital Employeed (%)19.6320.8921.4218.3718.13
Return On Assets (%)10.4510.6910.669.139.15
Long Term Debt / Equity (X)0.020.040.090.110.16
Total Debt / Equity (X)0.180.230.280.250.42
Asset Turnover Ratio (%)1.181.181.090.870.90
Current Ratio (X)1.861.771.581.461.28
Quick Ratio (X)1.131.040.920.860.73
Inventory Turnover Ratio (X)2.542.872.792.252.18
Dividend Payout Ratio (NP) (%)23.1123.6745.317.6046.88
Dividend Payout Ratio (CP) (%)16.4016.9031.965.0630.78
Earning Retention Ratio (%)76.8976.3354.6992.4053.12
Cash Earning Retention Ratio (%)83.6083.1068.0494.9469.22
Interest Coverage Ratio (X)29.4122.6329.2726.4610.73
Interest Coverage Ratio (Post Tax) (X)17.4313.6117.0814.886.64
Enterprise Value (Cr.)23564.3221199.9019559.3517395.106927.58
EV / Net Operating Revenue (X)4.163.743.994.771.86
EV / EBITDA (X)25.0523.6023.2625.1511.16
MarketCap / Net Operating Revenue (X)4.053.633.854.621.64
Retention Ratios (%)76.8876.3254.6892.3953.11
Price / BV (X)6.716.827.207.173.07
Price / Net Operating Revenue (X)4.053.633.854.621.64
EarningsYield0.020.020.020.020.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1,496.60

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 6.60% compared to the current price 1404

Intrinsic Value: 1,645.35

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 17.19% compared to the current price 1404

Last 5 Year EPS CAGR: 9.94%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.92%, which is a positive sign.
  2. The company has higher reserves (1,760.50 cr) compared to borrowings (769.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.33 cr) and profit (429.17 cr) over the years.
  1. The stock has a high average Working Capital Days of 74.25, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 109.58, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Sundram Fasteners Ltd:
    1. Net Profit Margin: 9.27%
      • 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: 19.63% (Industry Average ROCE: 17.59%)
      • 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. ✗ ROE%: 15.25% (Industry Average ROE: 15.76%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 17.43
      • 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.
    5. Quick Ratio: 1.13
      • 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.
    6. ✓ Stock P/E: 56.4 (Industry average Stock P/E: 61.16)
      • 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.
    7. ✓ Total Debt / Equity: 0.18
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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, 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
Dr. Nirmala LakshmanIndependent Director
Mr. S MahalingamIndependent Director
Mr. B MuthuramanIndependent Director
Mr. Heramb R HajarnavisIndependent Director

FAQ

What is the latest fair value of Sundram Fasteners Ltd?

The latest fair value of Sundram Fasteners Ltd is ₹1496.60.

What is the Market Cap of Sundram Fasteners Ltd?

The Market Cap of Sundram Fasteners Ltd is 29,464 Cr..

What is the current Stock Price of Sundram Fasteners Ltd as on 25 July 2024?

The current stock price of Sundram Fasteners Ltd as on 25 July 2024 is 1,404.

What is the High / Low of Sundram Fasteners Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sundram Fasteners Ltd stocks is 1,506/1,002.

What is the Stock P/E of Sundram Fasteners Ltd?

The Stock P/E of Sundram Fasteners Ltd is 56.4.

What is the Book Value of Sundram Fasteners Ltd?

The Book Value of Sundram Fasteners Ltd is 163.

What is the Dividend Yield of Sundram Fasteners Ltd?

The Dividend Yield of Sundram Fasteners Ltd is 0.49 %.

What is the ROCE of Sundram Fasteners Ltd?

The ROCE of Sundram Fasteners Ltd is 18.5 %.

What is the ROE of Sundram Fasteners Ltd?

The ROE of Sundram Fasteners Ltd is 16.2 %.

What is the Face Value of Sundram Fasteners Ltd?

The Face Value of Sundram Fasteners Ltd is 1.00.

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