NSEI:SUNDRMFAST

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Sundram Fasteners Limited manufactures and sells precision components for the automotive, infrastructure, windmill, and aviation sectors in India, China, Germany, the United States, the United Kingdom, Italy, France, and Brazil. More Details


Snowflake Analysis

Flawless balance sheet with high growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Sundram Fasteners's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SUNDRMFAST is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SUNDRMFAST's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

SUNDRMFAST

3.2%

IN Auto Components

0.3%

IN Market


1 Year Return

7.2%

SUNDRMFAST

6.2%

IN Auto Components

7.0%

IN Market

Return vs Industry: SUNDRMFAST exceeded the Indian Auto Components industry which returned 6.2% over the past year.

Return vs Market: SUNDRMFAST matched the Indian Market which returned 7% over the past year.


Shareholder returns

SUNDRMFASTIndustryMarket
7 Day-0.3%3.2%0.3%
30 Day17.7%15.3%9.0%
90 Day6.4%8.1%8.8%
1 Year8.2%7.2%7.4%6.2%8.9%7.0%
3 Year2.8%0.1%-22.4%-24.6%5.1%0.009%
5 Year237.9%220.7%25.1%19.7%51.8%40.4%

Long-Term Price Volatility Vs. Market

How volatile is Sundram Fasteners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sundram Fasteners undervalued compared to its fair value and its price relative to the market?

44.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SUNDRMFAST (₹499.6) is trading above our estimate of fair value (₹92.16)

Significantly Below Fair Value: SUNDRMFAST is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SUNDRMFAST is poor value based on its PE Ratio (44.8x) compared to the IN Auto Components industry average (31.7x).

PE vs Market: SUNDRMFAST is poor value based on its PE Ratio (44.8x) compared to the Indian market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: SUNDRMFAST is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: SUNDRMFAST is overvalued based on its PB Ratio (5.1x) compared to the IN Auto Components industry average (1.4x).


Next Steps

Future Growth

How is Sundram Fasteners forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

44.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUNDRMFAST's forecast earnings growth (44.1% per year) is above the savings rate (7.2%).

Earnings vs Market: SUNDRMFAST's earnings (44.1% per year) are forecast to grow faster than the Indian market (24.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SUNDRMFAST's revenue (22.8% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: SUNDRMFAST's revenue (22.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SUNDRMFAST's Return on Equity is forecast to be low in 3 years time (19.1%).


Next Steps

Past Performance

How has Sundram Fasteners performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUNDRMFAST has high quality earnings.

Growing Profit Margin: SUNDRMFAST's current net profit margins (8%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: SUNDRMFAST's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: SUNDRMFAST's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SUNDRMFAST had negative earnings growth (-40.6%) over the past year, making it difficult to compare to the Auto Components industry average (-47.3%).


Return on Equity

High ROE: SUNDRMFAST's Return on Equity (11.3%) is considered low.


Next Steps

Financial Health

How is Sundram Fasteners's financial position?


Financial Position Analysis

Short Term Liabilities: SUNDRMFAST's short term assets (₹13.9B) exceed its short term liabilities (₹11.1B).

Long Term Liabilities: SUNDRMFAST's short term assets (₹13.9B) exceed its long term liabilities (₹4.1B).


Debt to Equity History and Analysis

Debt Level: SUNDRMFAST's debt to equity ratio (33%) is considered satisfactory.

Reducing Debt: SUNDRMFAST's debt to equity ratio has reduced from 79% to 33% over the past 5 years.

Debt Coverage: SUNDRMFAST's debt is well covered by operating cash flow (99%).

Interest Coverage: SUNDRMFAST's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Sundram Fasteners's current dividend yield, its reliability and sustainability?

0.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SUNDRMFAST's dividend (0.83%) is higher than the bottom 25% of dividend payers in the Indian market (0.54%).

High Dividend: SUNDRMFAST's dividend (0.83%) is low compared to the top 25% of dividend payers in the Indian market (2.19%).


Stability and Growth of Payments

Stable Dividend: SUNDRMFAST's dividend payments have been volatile in the past 10 years.

Growing Dividend: SUNDRMFAST's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.7%), SUNDRMFAST's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SUNDRMFAST's dividends in 3 years are forecast to be well covered by earnings (25.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Arathi Krishna (52 yo)

14.5yrs

Tenure

₹35,553,000

Compensation

Ms. Arathi Krishna has been a Managing Director of Sundram Fasteners Limited since April 20, 2018. She has been an Executive Director of Sundram Fasteners since May 3, 2006. Ms. Krishna is a Gold Medallis...


CEO Compensation Analysis

Compensation vs Market: Arathi's total compensation ($USD481.86K) is about average for companies of similar size in the Indian market ($USD621.07K).

Compensation vs Earnings: Arathi's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Arathi Krishna
MD & Executive Director14.5yrs₹35.55m0.022%
₹ 23.8m
Arundathi Krishna
Joint MD & Whole-Time Director12.17yrs₹38.78m0.025%
₹ 26.3m
S. Meenakshisundaram
CFO & Whole Time Director0.42yr₹12.25m0.00048%
₹ 510.9k
R. Kumar
VP of Financeno data₹7.25m0.00095%
₹ 1.0m
A. Narasimhan
Deputy General Manager of Marketingno datano datano data
S. Sridharan
Head of Internal Auditno datano datano data

4.6yrs

Average Tenure

52yo

Average Age

Experienced Management: SUNDRMFAST's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Arathi Krishna
MD & Executive Director14.5yrs₹35.55m0.022%
₹ 23.8m
Arundathi Krishna
Joint MD & Whole-Time Director12.17yrs₹38.78m0.025%
₹ 26.3m
S. Meenakshisundaram
CFO & Whole Time Director0.42yr₹12.25m0.00048%
₹ 510.9k
Suresh Krishna
Non-Executive Chairmanno data₹29.22m0.017%
₹ 18.3m
Muthuraman Balasubramanian
Independent Non-Executive Director5.58yrs₹220.00kno data
Rangarajan Srinivasan
Independent Non-Executive Director25.67yrs₹340.00k0.0044%
₹ 4.7m
Heramb Hajarnavis
Non-Executive Independent Director3.17yrs₹390.00kno data
Preethi Krishna
Non-Executive Non-Independent Director3.33yrs₹200.00kno data
Mahalingam Seturaman
Non Executive Independent Director2.83yrs₹350.00kno data
Nirmala Lakshman
Additional Non Executive Independent Director2.17yrs₹280.00kno data

3.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: SUNDRMFAST's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sundram Fasteners Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sundram Fasteners Limited
  • Ticker: SUNDRMFAST
  • Exchange: NSEI
  • Founded: 1962
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: ₹106.430b
  • Shares outstanding: 210.13m
  • Website: https://www.sundram.com

Location

  • Sundram Fasteners Limited
  • 98 - A, Dr. Radhakrishnan Salai
  • VII Floor
  • Chennai
  • Tamil Nadu
  • 600004
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500403BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1999
SUNDRMFASTNSEI (National Stock Exchange of India)YesEquity SharesININRNov 1999

Biography

Sundram Fasteners Limited manufactures and sells precision components for the automotive, infrastructure, windmill, and aviation sectors in India, China, Germany, the United States, the United Kingdom, Ita...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 12:11
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.