Sundram Fasteners Limited

Consumer Cyclical — Auto Parts · NSE

₹1,115.00−₹1.10 (−0.10%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Sundram Fasteners Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sundram Fasteners Limited manufactures and sells components for the automotive, infrastructure, wind energy, aerospace, defense, farm equipment, industrial, aviation, and other sectors in India, China, the Americas, and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees3,108

Annual revenue₹6,103 Cr

How does it make money?

Turns over ₹6,103 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 3,108 employees supports ₹1.96 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin17.6%

Net margin9.7%

Revenue / employee₹1.96 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Some evidence

ROCE of 18.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE18.2%

ROE13.8%

Peer median ROE23.0%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 12.3% and earnings to grow about 20.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.3%

Est. earnings growth+20.7%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +11% while net margin moved +8% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+11%

Margin effect+8%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 3.6% — barely ahead of inflation
✗ Profit CAGR of only 6.1%

Quality vs. Valuation

Company Quality

62/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

42/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

38.3x

3Y Median

41.8x

40 monthly readings · mean 43.7x · range 29.2x–59.5x

Sector Median

45.7x

median of 4 sector peers

🟡Currently trading close to its 3y median of 41.8x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 16% below the peer median of 45.7x.

vs. its own history

Fair

41.8x median over 40 months · -8%

vs. sector peers

Fair

45.7x median of 4 peers · -16%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

38.3x

P/B

5.48x

EV/EBITDA

22.4x

PEG

6.27

Dividend Yield

0.76%

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 14% over 3 years.
Cash generation is improving
Free cash flow is up 102% over 3 years.
Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on capital is falling
ROCE has declined from 20.7% to 18.2% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 35% against revenue growth of 11% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 35% against revenue up 11% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹465 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 35% against revenue up 11%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 3.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 16%✓ 17.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 3.6% CAGR
Latest reported year was 20.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹465 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹23,429 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.3x

Fair

Fairly valued against the generic band

P/B Ratio

5.48x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹29.08

Profitable

Profitable on a per-share basis

ROE

13.8%

Moderate

Moderate capital efficiency

ROCE

18.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

20.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

13.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.76%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹465 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,115

P/E (Forward)

26.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

12.1%

Average

Average margins

Net Margin

9.3%

Average

Average bottom-line conversion

Current Ratio

2.12

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

62%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1151.0 / 1186.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

36.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,490 Cr	₹5,493 Cr	₹5,776 Cr	₹6,103 Cr	+3.6%
EBITDA	₹884 Cr	₹915 Cr	₹972 Cr	₹1,072 Cr	+6.6%
EBITDA Margin	16.1%	16.7%	16.8%	17.6%	—
PAT (Net Profit)	₹495 Cr	₹522 Cr	₹539 Cr	₹591 Cr	+6.1%
EPS	₹23.54	₹24.83	₹25.66	₹28.13	+6.1%
ROE	16.4%	15.3%	14.1%	13.8%	—
ROCE	20.7%	19.6%	18.2%	18.2%	—
Total Debt	₹730 Cr	₹647 Cr	₹823 Cr	₹625 Cr	-5.1%
Free Cash Flow	₹230 Cr	₹189 Cr	₹28 Cr	₹465 Cr	+26.4%

🟢 Revenue has grown at 3.6% a year over 3 years.

🟢 EBITDA has grown at 6.6% a year over 3 years.

🟢 EBITDA Margin has risen from 16.1% to 17.6% over 3 years (+1.5 pts).

🟢 PAT (Net Profit) has grown at 6.1% a year over 3 years.

🟢 EPS has grown at 6.1% a year over 3 years.

🔴 ROE has fallen from 16.4% to 13.8% over 3 years (-2.6 pts).

🔴 ROCE has fallen from 20.7% to 18.2% over 3 years (-2.5 pts).

🟢 Total Debt has shrunk at 5.1% a year over 3 years.

🟢 Free Cash Flow has grown at 26.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,937 Cr

Total Liabilities

₹1,640 Cr

Total Debt

₹625 Cr

Cash & Equivalents

₹81 Cr

Operating Cash Flow

₹837 Cr

Capex

-₹372 Cr

Shareholding (proxy)

Institutional Holding

29.4%

Insider Holding

49.5%

Corporate Actions

Next Earnings

28 Oct 2026

Dividend Rate

₹8.5

Ex-Dividend Date

08 May 2026

Analyst Consensus

Recommendations

2 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹1,295.5

+16.2% vs CMP

Target Range

₹1,140 – ₹1,451

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

2 positive3 mixed1 general

Sundram Fasteners posts 20% revenue rise in Q1FY27, PAT up 14% to ₹168.69 crore

scanx.trade, 18 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

SUNDRMFAST Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Results: Sundram Fasteners Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

Simply Wall Street, 08 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Sundram Fasteners Share Price Reaches Fresh Yearly High

Univest, 14 Aug

Sundram Fasteners posts 14% Q1 profit growth; earmarks ₹400 crore capex

Business Standard, 04 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Sundram Fasteners Q1 Net Profit Rises to ₹168 Crore, Revenue Grows to ₹1,846 Crore

Sahi, 04 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13.3/20

🟢Financial HealthStrong17.6/20

🔴GrowthWeak7.4/20

🟡ProfitabilityModerate8.3/15

🔴ValuationDemanding6.5/15

🟢RiskLow6.7/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓EBITDA margin holds above 16%17.6%
✗Revenue growth stays above 4% a year3.6% CAGR
✓Free cash flow remains positive₹465 Cr
✓Debt / EBITDA stays below 2x0.6x
✓ROCE stays above 15%18.2%