Sundram Fasteners (NSEI:SUNDRMFAST) - Share price, News & Analysis

Q: What is the Fair Price of SUNDRMFAST when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SUNDRMFAST (₹819.05) is trading above our estimate of [[fair value]] (₹349.17)

SUNDRMFAST fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	5/6
Past Performance	2/6
Financial Health	6/6
Dividends	4/6

SUNDRMFAST Stock Overview

Rewards

Earnings are forecast to grow 23.8% per year

Risk Analysis

Unstable dividend track record

Sundram Fasteners Competitors

ZF Commercial Vehicle Control Systems India

NSEI:ZFCVINDIA

₹177.5b

Asahi India Glass

BSE:515030

₹134.3b

Endurance Technologies

BSE:540153

₹201.5b

Exide Industries

BSE:500086

₹135.3b

Price History & Performance

Summary of all time highs, changes and price drops for Sundram Fasteners
Historical stock prices
Current Share Price	₹819.05
52 Week High	₹993.70
52 Week Low	₹673.05
Beta	0.98
1 Month Change	3.80%
3 Month Change	16.14%
1 Year Change	5.32%
3 Year Change	101.14%
5 Year Change	109.74%
Change since IPO	51.68%

Recent News & Updates

Jul 03

Sundram Fasteners (NSE:SUNDRMFAST) Has A Rock Solid Balance Sheet

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jun 17

Sundram Fasteners (NSE:SUNDRMFAST) Could Be Struggling To Allocate Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...

May 15

Should You Think About Buying Sundram Fasteners Limited (NSE:SUNDRMFAST) Now?

Sundram Fasteners Limited ( NSE:SUNDRMFAST ), is not the largest company out there, but it received a lot of attention...

Shareholder Returns

	SUNDRMFAST	IN Auto Components	IN Market
7D	-2.9%	-0.9%	1.1%
1Y	5.3%	1.8%	8.5%

Return vs Industry: SUNDRMFAST exceeded the Indian Auto Components industry which returned 1.8% over the past year.

Return vs Market: SUNDRMFAST underperformed the Indian Market which returned 8.5% over the past year.

Price Volatility

Is SUNDRMFAST's price volatile compared to industry and market?
SUNDRMFAST volatility
SUNDRMFAST Average Weekly Movement	4.0%
Auto Components Industry Average Movement	6.1%
Market Average Movement	6.4%
10% most volatile stocks in IN Market	9.1%
10% least volatile stocks in IN Market	4.2%

Stable Share Price: SUNDRMFAST is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SUNDRMFAST's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1962	2,937	Arathi Krishna	https://www.sundram.com

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. Its products include high tensile fasteners comprising wind energy, automotive, and aerospace and aviation fasteners; cold extruded parts, including gear blanks, transmission shafts, cams, starter sleeves and pinions, CV joint parts, and fan hubs; and hot forged parts consisting of bevel gears and pinions, hub rings, clutch hubs, crankshafts sprockets, turbocharger parts, and connecting rods. It also provides powertrain components, such as turbine and output shafts, sungear shafts, and slip yokes; powder metallurgy parts comprising rotors and gears, synchronizer hubs, shock absorber components, valve train components, bushes, and structural parts; and metal and nylon radiator caps, as well as offers pumps and assemblies for passenger cars, heavy and light commercial vehicles, off-road vehicles, tractors, combines, harvesters, forklifts, marine engines, power generation engines, and two- wheelers.

Sundram Fasteners Fundamentals Summary

How do Sundram Fasteners's earnings and revenue compare to its market cap?
SUNDRMFAST fundamental statistics
Market Cap	₹172.11b
Earnings (TTM)	₹4.73b
Revenue (TTM)	₹52.00b

36.4x

P/E Ratio

3.3x

P/S Ratio

Is SUNDRMFAST overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SUNDRMFAST income statement (TTM)
Revenue	₹52.00b
Cost of Revenue	₹23.69b
Gross Profit	₹28.31b
Other Expenses	₹23.57b
Earnings	₹4.73b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	22.51
Gross Margin	54.44%
Net Profit Margin	9.10%
Debt/Equity Ratio	29.3%

How did SUNDRMFAST perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

29%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SUNDRMFAST undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SUNDRMFAST?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SUNDRMFAST. This is calculated by dividing SUNDRMFAST's market cap by their current preferred multiple.
What is SUNDRMFAST's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹172.11b

SUNDRMFAST key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.5x
Enterprise Value/EBITDA	21.9x
PEG Ratio	1.5x

Price to Earnings Ratio vs Peers

How does SUNDRMFAST's PE Ratio compare to its peers?

SUNDRMFAST PE Ratio vs Peers

The above table shows the PE ratio for SUNDRMFAST vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	47.4x
ZFCVINDIA ZF Commercial Vehicle Control Systems India	96.9x	n/a	₹177.5b
515030 Asahi India Glass	32.3x	12.7%	₹134.3b
540153 Endurance Technologies	43.1x	26.0%	₹201.5b
500086 Exide Industries	17.3x	n/a	₹135.3b
SUNDRMFAST Sundram Fasteners	36.4x	23.8%	₹172.1b

Price-To-Earnings vs Peers: SUNDRMFAST is good value based on its Price-To-Earnings Ratio (36.4x) compared to the peer average (47.4x).

Price to Earnings Ratio vs Industry

How does SUNDRMFAST's PE Ratio compare vs other companies in the IN Auto Components Industry?

Price-To-Earnings vs Industry: SUNDRMFAST is expensive based on its Price-To-Earnings Ratio (36.4x) compared to the Indian Auto Components industry average (22.3x)

Price to Earnings Ratio vs Fair Ratio

What is SUNDRMFAST's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SUNDRMFAST PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	36.4x
Fair PE Ratio	27.4x

Price-To-Earnings vs Fair Ratio: SUNDRMFAST is expensive based on its Price-To-Earnings Ratio (36.4x) compared to the estimated Fair Price-To-Earnings Ratio (27.4x).

Share Price vs Fair Value

What is the Fair Price of SUNDRMFAST when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SUNDRMFAST (₹819.05) is trading above our estimate of fair value (₹349.17)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

23.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUNDRMFAST's forecast earnings growth (23.8% per year) is above the savings rate (6.8%).

Earnings vs Market: SUNDRMFAST's earnings (23.8% per year) are forecast to grow faster than the Indian market (18.7% per year).

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

Revenue vs Market: SUNDRMFAST's revenue (13.9% per year) is forecast to grow faster than the Indian market (10.6% per year).

High Growth Revenue: SUNDRMFAST's revenue (13.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SUNDRMFAST's Return on Equity is forecast to be high in 3 years time (23.5%)

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Past Performance

How has Sundram Fasteners performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SUNDRMFAST has high quality earnings.

Growing Profit Margin: SUNDRMFAST's current net profit margins (9.1%) are lower than last year (11.5%).

Past Earnings Growth Analysis

Earnings Trend: SUNDRMFAST's earnings have grown by 5.8% 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 (-6.4%) over the past year, making it difficult to compare to the Auto Components industry average (15.9%).

Return on Equity

High ROE: SUNDRMFAST's Return on Equity (18.2%) is considered low.

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Financial Health

How is Sundram Fasteners's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SUNDRMFAST's short term assets (₹19.8B) exceed its short term liabilities (₹12.5B).

Long Term Liabilities: SUNDRMFAST's short term assets (₹19.8B) exceed its long term liabilities (₹4.0B).

Debt to Equity History and Analysis

Debt Level: SUNDRMFAST's net debt to equity ratio (27.1%) is considered satisfactory.

Reducing Debt: SUNDRMFAST's debt to equity ratio has reduced from 53.2% to 29.3% over the past 5 years.

Debt Coverage: SUNDRMFAST's debt is well covered by operating cash flow (52%).

Interest Coverage: SUNDRMFAST's interest payments on its debt are well covered by EBIT (23.7x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.79%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SUNDRMFAST's dividend (0.79%) is higher than the bottom 25% of dividend payers in the Indian market (0.39%).

High Dividend: SUNDRMFAST's dividend (0.79%) is low compared to the top 25% of dividend payers in the Indian market (1.72%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.6%), SUNDRMFAST's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (68.6%), SUNDRMFAST's dividend payments are covered by cash flows.

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Management

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

2.2yrs

Average management tenure

CEO

Arathi Krishna (54 yo)

16.25yrs

Tenure

₹45,008,000

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 ($USD565.48K) is about average for companies of similar size in the Indian market ($USD581.89K).

Compensation vs Earnings: Arathi's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: SUNDRMFAST's management team is considered experienced (2.2 years average tenure).

Board Members

Experienced Board: SUNDRMFAST's board of directors are considered experienced (5.1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/12 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31