Sundaram-Clayton Limited (SUNCLAY) AI Stock Analysis

• Market Cap: ₹30.16B
• Dividend Yield: 0.39%
• Average Volume (3M): 1.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: -5.60%
• EPS Growth: 90.25%
• Country: IN
• Employees: 1,429
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -20.10
• Shares Outstanding: 22,046,162
• 10 Day Avg. Volume: 377
• 30 Day Avg. Volume: 1,114
• PEG Ratio: 4.86
• Price to Book (P/B): 4.89
• Price to Sales (P/S): 2.10
• P/FCF Ratio: -8.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: ₹1,090.00 ▼(-27.90% Downside)
• Action: Reiterated Date: 11/12/25
• Date: Action: Reiterated 11/12/25

Sundaram-Clayton Limited's overall stock score is heavily impacted by its poor financial performance and weak technical indicators. The company's high leverage and negative profitability metrics are significant concerns. Additionally, the stock's current bearish momentum and unattractive valuation further contribute to the low score.

Positive Factors

Diversified revenue streams

Multiple durable revenue channels—OEM contracts, aftermarket spares, and value-added manufacturing—reduce reliance on any single demand source. Over 2–6 months this breadth supports steadier order flow, aids utilization smoothing and provides pricing levers across customer segments.

Long-term OEM relationships and quality approvals

Established customer ties and component quality approvals create high barriers to entry and recurring revenue. These structural relationships support sustained bill-of-material content and make it harder for competitors to displace the company, preserving revenue and margin potential over the medium term.

Reasonable asset base to support growth

A tangible asset base provides capacity to increase production or reallocate resources to higher-value components. Over months, this enables scaling for new OEM programs or efficiency investments without needing immediate large external capital, helping execute growth or margin recovery plans.

Negative Factors

High leverage and low equity ratio

Significant leverage and a low equity ratio constrain financial flexibility and increase default risk if demand weakens. Interest and covenant pressures can force defensive decisions, limiting capital allocation to productive investments and raising refinancing risk over the medium term.

Repeated negative free cash flow

Persistent negative free cash flow erodes liquidity and forces reliance on external funding to cover capex and working capital. This undermines the company’s ability to deleverage, invest in efficiency initiatives, or absorb cyclical downturns, increasing structural financial vulnerability.

Negative profitability and inconsistent revenue trends

Ongoing negative operating margins and declining revenues indicate deep operational inefficiencies and weak pricing or mix. Over the medium term this reduces retained earnings, limits reinvestment capacity, and magnifies the impact of leverage, making sustainable margin recovery more challenging.

Sundaram-Clayton Limited Business Overview & Revenue Model

Company Description

Sundaram-Clayton Limited manufactures and sells non-ferrous gravity and pressure die castings. The company was formerly known as Sundaram - Clayton DCD Limited and changed its name to Sundaram-Clayton Limited in August 2023. Sundaram-Clayton Limited was incorporated in 2017 and is based in Chennai, India.

How the Company Makes Money

Sundaram-Clayton generates revenue primarily through the manufacturing and sale of automotive components, especially aluminum die-cast products. The company has established long-term relationships with major automotive manufacturers, contributing to a steady stream of orders and contracts. Key revenue streams include the sale of components to original equipment manufacturers (OEMs), aftermarket products, and various engineering services. Additionally, SUNCLAY benefits from strategic partnerships and collaborations within the automotive sector, which enhance its market position and lead to increased sales volumes. The company's focus on innovation and quality also allows it to command competitive pricing, further bolstering its revenue generation.

Sundaram-Clayton Limited Financial Statement Overview

Summary

Sundaram-Clayton Limited faces significant challenges with profitability and cash flow management. The company has a high leverage ratio, negative EBIT, and net income margins, which highlight operational inefficiencies and financial struggles.

Income Statement

Sundaram-Clayton Limited has faced significant challenges with profitability over the years. The company shows inconsistent revenue growth with recent figures indicating a recovery. However, the persistent negative EBIT and net income margins highlight ongoing operational inefficiencies and financial struggles.

Balance Sheet

The company's balance sheet indicates high leverage with a significant debt-to-equity ratio. Despite some increase in stockholders' equity, the overall equity ratio remains low, suggesting limited financial stability. The company also maintains a reasonable level of total assets, which can be leveraged for future growth.

Cash Flow

Sundaram-Clayton Limited's cash flow situation is concerning, with repeated negative free cash flow figures indicating a strain on cash reserves. The inability to generate sufficient operating cash flow to cover capital expenditures and other obligations poses a risk to financial health.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.99B	22.59B	14.15B	20.26B	16.57B	11.17B
Gross Profit	5.24B	10.76B	5.91B	8.24B	7.12B	5.09B
EBITDA	2.72B	3.16B	631.20M	44.63B	1.88B	1.34B
Net Income	857.90M	-106.50M	-1.20B	-1.08B	252.20M	-447.90M
Balance Sheet
Total Assets	0.00	30.99B	26.74B	24.12B	23.25B	21.03B
Cash, Cash Equivalents and Short-Term Investments	326.80M	752.60M	248.40M	1.04B	1.24B	211.00M
Total Debt	0.00	14.93B	14.26B	11.07B	9.90B	9.41B
Total Liabilities	-9.71B	21.28B	20.74B	16.38B	14.77B	13.47B
Stockholders Equity	9.71B	9.71B	6.00B	7.74B	5.57B	4.30B
Cash Flow
Free Cash Flow	0.00	-5.89B	-2.28B	-613.50M	-6.68B	637.60M
Operating Cash Flow	0.00	-97.00M	455.00M	1.26B	1.05B	1.11B
Investing Cash Flow	0.00	-3.07B	-2.78B	-1.86B	-990.20M	-461.50M
Financing Cash Flow	0.00	3.29B	1.51B	399.60M	965.60M	-1.07B

Sundaram-Clayton Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1511.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUNCLAY, the sentiment is Neutral. The current price of 1511.8 is above the 20-day moving average (MA) of 1343.97, above the 50-day MA of 1277.64, and below the 200-day MA of 1635.41, indicating a neutral trend. The MACD of 29.00 indicates Positive momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 29.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SUNCLAY.

Sundaram-Clayton Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUMAXTECH	66 Neutral	₹103.29B	31.91	―	0.35%	36.70%	36.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PRITIKAUTO	58 Neutral	₹2.02B	11.02	―	―	26.03%	-10.27%
PPAP	55 Neutral	₹3.05B	1,133.42	―	1.17%	2.75%	―
SUPRAJIT	54 Neutral	₹58.56B	126.88	―	0.63%	14.20%	16.80%
SHIVAMAUTO	47 Neutral	₹2.45B	-3.18	―	―	-11.18%	-22.17%
SUNCLAY	38 Underperform	₹30.16B	-12.99	―	0.39%	-5.60%	90.25%