Sundaram Brake Linings Limited (SUNDRMBRAK) AI Stock Analysis

• Market Cap: ₹3.14B
• Dividend Yield: 0.2%
• Average Volume (3M): 300.00
• Price to Earnings (P/E): 99.8
• Beta (1Y): 1.35
• Revenue Growth: 4.26%
• EPS Growth: -121.56%
• Country: IN
• Employees: 617
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): -7.94
• Shares Outstanding: 3,934,575
• 10 Day Avg. Volume: 223
• 30 Day Avg. Volume: 300
• PEG Ratio: -1.15
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 0.82
• P/FCF Ratio: -24.79
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹793.00 ▲(7.45% Upside)

Sundaram Brake Linings Limited's overall stock score is driven by mixed financial performance and technical indicators. The company's high P/E ratio suggests overvaluation, while the technical analysis indicates short-term bearish momentum. The stable balance sheet is a positive aspect, but challenges in profitability and cash flow generation weigh on the score.

Positive Factors

Revenue Growth

Consistent revenue growth, even if modest, indicates a stable demand for products and potential for market expansion over time.

Balance Sheet Stability

A stable balance sheet with moderate leverage ensures financial flexibility and resilience against economic fluctuations.

International Expansion

International expansion diversifies revenue sources and reduces dependency on domestic markets, enhancing long-term growth prospects.

Negative Factors

Profitability Challenges

Volatile profitability can undermine financial stability and investor confidence, necessitating improved cost management and efficiency.

Cash Flow Concerns

Negative free cash flow indicates potential liquidity issues, which may limit the company's ability to invest in growth opportunities.

Operational Efficiency

Declining operational efficiency can erode margins and competitiveness, highlighting the need for strategic improvements.

Sundaram Brake Linings Limited Business Overview & Revenue Model

Company Description

Sundaram Brake Linings Limited (SUNDRMBRAK) is a leading manufacturer of brake linings and other friction materials in India, catering primarily to the automotive and industrial sectors. Established in 1961, the company specializes in producing high-quality components such as brake pads, brake shoes, and clutches, serving both original equipment manufacturers (OEMs) and the aftermarket. With a strong emphasis on innovation and quality, SUNDRMBRAK has positioned itself as a trusted supplier in the automotive industry.

How the Company Makes Money

Sundaram Brake Linings generates revenue through multiple key streams, primarily from the sale of its brake linings and friction materials to OEMs and aftermarket suppliers. The company benefits from long-term contracts with major automotive manufacturers, ensuring a steady demand for its products. Additionally, SUNDRMBRAK has expanded its presence internationally, tapping into global markets which further diversifies its revenue sources. The company also engages in research and development to innovate and improve its product offerings, which helps maintain competitive pricing and high-quality standards. Strategic partnerships with automotive companies enhance its market reach and brand credibility, contributing positively to its earnings.

Sundaram Brake Linings Limited Financial Statement Overview

Summary

Sundaram Brake Linings Limited shows stable revenue and gross profit margins but faces challenges with profitability and cash flow generation. The balance sheet remains solid with a balanced approach to debt and equity, but the company needs to improve operational efficiencies and cash flow management.

Income Statement

Sundaram Brake Linings Limited shows a mixed performance in its income statement. The gross profit margin has been relatively stable, indicating effective cost management. However, the net profit margin has fluctuated significantly, showing volatility in net income. Revenue growth is modest, with a slight increase in the latest year. The EBIT margin has declined, reflecting challenges in operational efficiency. EBITDA margin remains stronger, suggesting some resilience in earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The balance sheet of Sundaram Brake Linings Limited reflects moderate financial leverage, with a debt-to-equity ratio indicating a manageable level of debt. The return on equity shows inconsistency, with recent declines, pointing to challenges in generating returns for shareholders. The equity ratio indicates a stable capital structure with a reasonable proportion of assets financed by equity, suggesting financial stability.

Cash Flow

Cash flow analysis reveals some concerns for Sundaram Brake Linings Limited. The operating cash flow to net income ratio indicates difficulties in converting income into cash flow, while free cash flow has been negative, raising liquidity concerns. Despite this, financing activities have supported cash flows, reflecting reliance on external funding.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.61B	3.52B	3.50B	3.53B	2.93B	2.33B
Gross Profit	1.66B	1.21B	464.81M	1.28B	1.12B	1.01B
EBITDA	140.59M	161.38M	219.91M	53.54M	100.01M	87.87M
Net Income	31.49M	51.73M	100.94M	-47.82M	777.00K	60.01M
Balance Sheet
Total Assets	0.00	2.25B	2.06B	2.06B	1.97B	1.82B
Cash, Cash Equivalents and Short-Term Investments	2.89M	2.89M	3.35M	22.72M	2.90M	7.28M
Total Debt	0.00	557.18M	442.28M	499.72M	416.41M	297.73M
Total Liabilities	-993.53M	1.25B	1.11B	1.21B	1.07B	917.92M
Stockholders Equity	993.53M	993.53M	950.59M	854.10M	906.31M	901.73M
Cash Flow
Free Cash Flow	0.00	-116.68M	88.91M	-47.20M	-97.71M	-81.06M
Operating Cash Flow	0.00	-36.12M	152.11M	11.11M	-20.85M	-38.73M
Investing Cash Flow	0.00	-71.34M	-61.05M	-57.46M	-75.97M	-38.71M
Financing Cash Flow	0.00	106.86M	-90.16M	45.99M	97.14M	46.54M

Sundaram Brake Linings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 738.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUNDRMBRAK, the sentiment is Negative. The current price of 738 is below the 20-day moving average (MA) of 756.04, below the 50-day MA of 763.17, and below the 200-day MA of 793.76, indicating a bearish trend. The MACD of -8.39 indicates Positive momentum. The RSI at 41.46 is Neutral, neither overbought nor oversold. The STOCH value of 80.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SUNDRMBRAK.

Sundaram Brake Linings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BHARATGEAR	60 Neutral	₹1.77B	26.68	―	―	8.90%	-93.55%
SUNDRMBRAK	55 Neutral	₹3.14B	99.85	―	0.20%	4.26%	-121.56%
KALYANIFRG	53 Neutral	₹2.50B	26.63	―	0.60%	0.76%	17.16%
GUJAPOLLO	49 Neutral	₹5.36B	―	―	0.43%	4.69%	-124.17%
KECL	49 Neutral	₹7.08B	99.48	―	―	-11.25%	-48.96%