Sundram Fasteners Limited (SUNDRMFAST) AI Stock Analysis

• Market Cap: ₹172.85B
• Dividend Yield: 0.84%
• Average Volume (3M): 16.77K
• Price to Earnings (P/E): 37.6
• Beta (1Y): 0.72
• Revenue Growth: 3.59%
• EPS Growth: 1.37%
• Country: IN
• Employees: 3,058
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 6.50
• Shares Outstanding: 210,128,370
• 10 Day Avg. Volume: 31,496
• 30 Day Avg. Volume: 16,765
• PEG Ratio: 10.54
• Price to Book (P/B): 4.98
• Price to Sales (P/S): 3.19
• P/FCF Ratio: 689.38
• 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): 29.3
• Revenue Forecast (FY): ₹62.61B

• Rating: 66 Neutral
• Price Target: ₹888.00 ▼(-6.66% Downside)
• Action: Reiterated Date: 10/08/25
• Date: Action: Reiterated 10/08/25

Sundram Fasteners Limited's strong financial performance is the most significant factor, supported by robust revenue growth and profitability. However, technical indicators suggest a neutral trend, and valuation metrics indicate the stock may be overvalued, which tempers the overall score.

Positive Factors

High gross profit margins

Sundram's gross margin improvement to over 60% in FY2025 reflects a durable shift toward higher-value engineered parts and effective cost controls. Sustained elevated gross margins provide a structural buffer versus raw material inflation, supporting reinvestment and resilient operating profitability across cycles.

Strong cash generation and conversion

The company reports consistently positive operating and free cash flows and converts OCF into FCF effectively. Reliable cash generation underpins capital expenditure for tooling and precision capabilities, funds debt repayment or shareholder returns, and strengthens financial flexibility over multiple quarters.

Solid balance sheet and equity growth

A robust equity base and a manageable debt-to-equity ratio indicate financial resilience. This capital structure supports funding of capacity expansion and product development without excessive leverage, allowing the company to absorb automotive cyclicality and pursue strategic investments over the medium term.

Negative Factors

Rising total debt levels

Total debt has risen per the balance sheet summary. Increasing leverage can elevate interest costs and refinancing risk, reducing strategic optionality. If automotive demand weakens, higher debt could pressure liquidity and force trade-offs between capex, dividends, and deleveraging over the next several quarters.

Volatile free cash flow growth

While FCF is positive, its growth rate is volatile. Variable free cash flow complicates predictable capital allocation and increases sensitivity to working-capital swings and order timing. This volatility can limit consistent reinvestment or steady shareholder distributions during down cycles.

Exposure to auto cycles, raw materials & currency

Revenue and margins are structurally linked to automotive production cycles, steel cost volatility, and currency swings for exports. This exposure can cause multi-quarter swings in sales and profitability, making long-term cash flow and margin stability contingent on commodity and OEM demand trends.

Sundram Fasteners Limited Business Overview & Revenue Model

Company Description

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. In addition, the company engages in the generation of power using non-conventional sources; and manufacture of parts for aerospace and defense. Further, it provides financial and software services; bearing housings; and spokes and nipples, automobile kits, dowels and rollers, small screws, and tools. The company was incorporated in 1962 and is headquartered in Chennai, India.

How the Company Makes Money

Sundram Fasteners makes money primarily by manufacturing and selling engineered fasteners and precision metal components to customers, with revenues recognized from product sales across multiple end-markets. Its key revenue streams include (1) supply of high-tensile fasteners and other fastening solutions to automotive original equipment manufacturers (OEMs) and tier suppliers for use in passenger vehicles, commercial vehicles, and two/three-wheelers; (2) sales of precision-engineered components such as cold-extruded parts and machined components used in powertrain, chassis, and other automotive and industrial assemblies; and (3) sales to non-automotive/industrial customers where fasteners and precision components are used in general engineering applications. The company also earns from exports by supplying global customers and multinational OEM supply chains, with earnings influenced by volumes from automotive production cycles, customer platform wins, product mix (higher value-added precision parts vs. commodity fasteners), raw material costs (notably steel), and currency movements for export-linked sales. Specific details on material partnerships or customer-by-customer contributions are null.

Sundram Fasteners Limited Financial Statement Overview

Summary

Sundram Fasteners Limited presents a strong financial profile with robust revenue growth, solid profitability, and a stable balance sheet. The company has shown consistent improvement in gross profit margins and net income, although rising debt levels need careful management.

Income Statement

Sundram Fasteners Limited shows strong profitability with a consistent increase in gross profit margins and net income over the years. The gross profit margin improved significantly, reaching over 60% in FY 2025. The net profit margin remained steady, indicating effective cost management. Revenue growth is healthy, with a notable increase from the previous year, signaling robust demand for its products.

Balance Sheet

The company maintains a solid balance sheet with a manageable debt-to-equity ratio, reflecting prudent financial leverage. Stockholders' equity has grown steadily, showcasing strong financial health and stability. The equity ratio is robust, indicating a strong capital structure. However, the total debt level has increased, which could pose a risk if not managed efficiently.

Cash Flow

Sundram Fasteners demonstrates solid cash flow management with positive operating and free cash flows. Although the free cash flow growth rate is volatile, the company effectively converts operating cash flow into free cash flow. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to profitability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	60.26B	59.55B	56.66B	56.63B	49.02B	36.44B
Gross Profit	33.14B	34.57B	31.77B	30.62B	27.30B	21.36B
EBITDA	9.58B	9.35B	8.78B	8.47B	7.95B	6.55B
Net Income	5.54B	5.39B	5.22B	4.95B	4.57B	3.59B
Balance Sheet
Total Assets	57.01B	55.28B	49.89B	46.24B	42.84B	39.30B
Cash, Cash Equivalents and Short-Term Investments	693.00M	549.30M	376.40M	947.70M	565.70M	379.50M
Total Debt	7.41B	8.23B	6.47B	7.30B	7.72B	7.10B
Total Liabilities	16.27B	16.95B	15.47B	15.90B	16.48B	15.72B
Stockholders Equity	40.51B	38.10B	34.21B	30.16B	26.21B	23.47B
Cash Flow
Free Cash Flow	2.23B	275.50M	1.89B	2.30B	1.97B	2.59B
Operating Cash Flow	3.97B	4.23B	5.89B	4.69B	4.01B	4.54B
Investing Cash Flow	-1.83B	-3.81B	-3.88B	-2.34B	-2.02B	-1.98B
Financing Cash Flow	-2.09B	-275.50M	-2.35B	-2.14B	-1.86B	-2.70B

Sundram Fasteners Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 951.35
• 50DMA: Negative
• 100DMA: Negative
• 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:SUNDRMFAST, the sentiment is Negative. The current price of 951.35 is above the 20-day moving average (MA) of 880.88, above the 50-day MA of 912.33, and below the 200-day MA of 966.09, indicating a bearish trend. The MACD of -26.42 indicates Positive momentum. The RSI at 30.59 is Neutral, neither overbought nor oversold. The STOCH value of 27.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SUNDRMFAST.

Sundram Fasteners Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIEINDIA	74 Outperform	₹166.56B	19.45	―	1.77%	0.32%	-0.32%
NRBBEARING	73 Outperform	₹24.62B	22.79	―	2.39%	9.63%	-64.21%
SUNDRMFAST	66 Neutral	₹172.85B	37.63	―	0.84%	3.59%	1.37%
SHANTIGEAR	66 Neutral	₹34.58B	55.74	―	1.06%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CRAFTSMAN	59 Neutral	₹159.34B	42.81	―	0.07%	54.58%	-12.30%
RKFORGE	54 Neutral	₹101.25B	174.30	―	0.38%	-4.73%	-19.52%

Sundram Fasteners Limited Corporate Events

Sundram Fasteners Opens Special Window for Physical Share Transfer Requests

Sundram Fasteners Limited has notified stock exchanges that it has published a newspaper advertisement in the Chennai edition of The Economic Times, informing shareholders about the availability of a special window for re-lodgement of transfer requests for physical shares. The disclosure, made under Regulation 30 of the SEBI Listing Regulations, aims to ensure shareholders of physical share certificates are aware of this limited-time facility and can regularise or complete pending transfer requests in compliance with evolving market and regulatory norms.

Sundram Fasteners Discloses Analyst Meet Details and Publishes Call Recording

Sundram Fasteners Limited has disclosed that its management participated in an analyst and investor conference call on January 29, 2026, organized by Spark Institutional Equities Private Limited, in compliance with SEBI disclosure regulations. The company emphasized that no unpublished price-sensitive information was shared during the interaction, no formal presentation was made, and the audio recording of the call has been made publicly available on its website, reinforcing its focus on transparency and regulatory adherence for market participants and shareholders.

Sundram Fasteners Sets Board Meet to Review Q3 FY26 Results, Extends Trading Window Closure

Sundram Fasteners Limited has announced that its Board of Directors will meet on January 28, 2026 to consider, review and approve the unaudited financial results for the third quarter and nine months ended December 31, 2025. In line with SEBI’s Prohibition of Insider Trading regulations and the company’s internal code of conduct, the trading window for designated persons has been closed from December 31, 2025 to January 30, 2026, restricting trading in the company’s securities around the results announcement and reinforcing its compliance and governance practices.

Sundram Fasteners Opens Special Window for Physical Share Transfer Requests

Sundram Fasteners Limited has notified the stock exchanges that it has published a newspaper advertisement in The Economic Times, Chennai edition, informing shareholders about the availability of a special window for re-lodgement of transfer requests for physical shares. This move is aimed at helping investors who still hold shares in physical form to regularise or complete pending transfer requests in line with SEBI’s Listing Obligations and Disclosure Requirements, potentially improving shareholder service and ensuring better regulatory compliance and transparency in the company’s share transfer process.