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Sundram Fasteners Ltd. Stock Analysis

Mid Cap
Evaluated by 1642 users | BSE: 500403 | NSE: SUNDRMFAST |
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Sundram Fasteners (SFL) was incorporated in 1962. It is a part of the $5 billion TVS Group, headquartered in Chennai, India. The company has established a track record of leadership over 40 years. With a diversified product line, world-class facilities in four countries and a motivated team of...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Sundram Fasteners Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 11.61%11.23%8.67%9.34%11.86%12.21%21.32%19.37%18.65%12.47%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,2842,7702,6512,7363,1563,2553,3033,8554,5583,723
Y-o-Y Gr. Rt.-21.3%-4.3%3.2%15.4%3.1%1.5%16.7%18.2%-18.3%
Adjusted EPS (Rs.) 5.344.423.424.656.177.2416.51821.1515.17
Y-o-Y Gr. Rt.--17.2%-22.6%36%32.7%17.3%127.9%9.1%17.5%-28.3%
Book Value per Share (Rs.) 26.2830.5733.638.1441.8244.8258.8472.878995
Adjusted Net Profit 11292.871.897.8130152347378444319
Net Op. Cash Flow (Rs. Cr.) 28.2206274427106595244456457718
Debt to Cash Flow from Ops 27.774.333.131.728.251.012.881.532.181.23
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Sundram Fasteners Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.6%3.4%4.1%-18.3%
Adjusted EPS 12.3%19.7%-2.8%-28.3%
Book Value per Share 15.417.817.36.7
Share Price 26.8% 26.4% 1.2% 11.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 21.7715.5410.6512.9715.4416.6131.6627.3426.1316.49
Operating Profit Margin (%) 11.1511.0310.0510.611.9511.818.2317.7117.5915.98
Net Profit Margin (%) 4.983.392.733.574.134.6510.529.859.788.61
Debt to Equity 1.421.391.210.910.990.640.570.460.530.44
Working Capital Days 125129143137128127129139140164
Cash Conversion Cycle 69758473656460666984
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 49.53%
Institutions 27.43%
Non-Institutions 23.04%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Sundram Fasteners Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Sundram Fasteners Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Sundram Fasteners Ltd.'s performance infers:

Sundram Fasteners Ltd. earnings have grown by 19.7%, whereas share price has appreciated 26.4% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Sundram Fasteners Ltd. share prices over the last 10 years. Here is what we found out:

Sundram Fasteners Ltd. share price has appreciated 23.4% annually over the past ten years.

Sundram Fasteners (SFL) was incorporated in 1962. It is a part of the $5 billion TVS Group, headquartered in Chennai, India. The company has established a track record of leadership over 40 years. With a diversified product line, world-class facilities in four countries and a motivated team of talented people, Sundram Fasteners has become a supplier of choice to leading customers in the automotive and industrial segments worldwide.

The product range consists of high-tensile fasteners,

Sundram Fasteners (SFL) was incorporated in 1962. It is a part of the $5 billion TVS Group, headquartered in Chennai, India. The company has established a track record of leadership over 40 years. With a diversified product line, world-class facilities in four countries and a motivated team of talented people, Sundram Fasteners has become a supplier of choice to leading customers in the automotive and industrial segments worldwide.

The product range consists of high-tensile fasteners, powder metal components, cold extruded parts, hot forged components, radiator caps, automotive pumps, gear shifters, gears and couplings, hubs and shafts, tappets and iron powder. Over the years, SFL has acquired cutting-edge technological competencies in forging, metal forming, close-tolerance machining, heat treatment, surface finishing and assembly. Manufacturing locations are supported by engineering and design personnel working on new product design and development. Understanding the global nature of business and the need to provide quality products on just-in-time basis to the customers, the company has established supply chain logistics networks spanning several continents. At Sundram Fasteners, growth is a natural outcome of total adherence to three core operating principles: customer orientation, total quality and ethical business practices.

Product of the company

  • Fasteners
  • Radiator Caps
  • Powder Metal Parts
  • Cold Extruded Parts
  • Hot Forged Parts
  • Pumps & Assemblies   

Awards / Recognition

  • The Krishnapuram unit won TPM Club of India Award for best Kaizens 2009.
  • Its Metal forms division won Frost & Sullivan India Manufacturing Excellence Gold Award in 2008-09.
  • SFL's Puducheri unit won ACMA Technology Award 2007-08 for excellence in Technology.
  • SFL was awarded the EEPC Export Award Silver Shield 2006-07 for Star Performer in Large Enterprises Category.
  • TPM Excellence Award from JIPM, Japan in 1998 (the second Indian company and the first in the engineering industry to get this recognition).
  • Only laboratory in India to meet the Fastener Quality Act specifications as certified by NAVLAP, an important accrediting agency.
  • QS9000 certification given to Radiator Caps Division and Metal Forms Division in 1997 by BVQI.
  • CII Outstanding Export Award in 1997.
  • ACMA Export Awards in 1998-99, 1993-94, 1996-97, 2003-04, 2004-05, 2005-06.
  • ACMA Productivity Award in 1995-96.
  • ACMA Quality Award given to SFL in 1991.
  • SFL received ISO 9002 certification from BVQI in 1990, the first Indian company to achieve this recognition.
  • National HRD Network Award given to SFL in the year 1989.
  • Company Standardization Commendation Award given to SFL by Institute of Standards Engineers in 1988.
  • Best Employer-Employee Relations Award to SFL from Rotary Club of Madras in 1988.
  • CEI Award for Excellence in HRD related areas given to SFL in 1987-88.
  • First Indian company to get ISO 9000 certification. 
  • ISO/TS 16949 certification.
  • ISO 14001 certification.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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