557.25 9.75 (1.78%)
NSEJan 19, 2021 03:31 PM
The 2 reports from 2 analysts offering long term price targets for Sundram Fasteners Ltd. have an average target of 607.50. The consensus estimate represents an upside of 9.02% from the last price of 557.25.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-11-25||Sundram Fasteners Ltd. +||HDFC Securities||506.50||565.00||506.50 (10.02%)||Target met||Accumulate|
We initiate coverage on Sundram Fasteners with an ADD rating and set a target price of Rs 565, at 27x FY23E EPS, which is at a 10% premium to its 5-year average P/E. Post the run-up in stock price, we would recommend accumulating the stock on every correction. Key risks: slower-than-expected recovery and rapid shift towards electric vehicles We initiate on Sundram Fasteners with an ADD recommendation. Volumes are back to pre-COVID levels for several segments, including cars, tractors and 2Ws. We expect sales to grow in mid-teens over FY21-23, led by a cyclical uptick in India and abroad. Sundaram's enhanced competencies have allowed it to diversify into multiple products. It is also expanding in the non-auto segment. It has lowered dependence on high tensile fasteners with contribution reducing from 80% of revenues earlier to 31% currently. Sundram's diversified customer and product mix enable it to enjoy robust profitability - the elevated margins (16-18%) and high ROEs (in mid-teens) are a function of its mix across cars, tractors, CVs, exports and aftermarkets.
|2018-06-15||Sundram Fasteners Ltd. +||AUM Capital||636.00||720.00||636.00 (-12.38%)||Buy|
Sundram Fasteners Limited (SFL), a part of $5 billion TVS Group is one of the leading auto component manufacturers in India which has been operational since 1966 headquartered in Chennai. SFL has grown into a global leader, manufacturing critical, high precision components for the automotive, infrastructure, windmill and aviation sectors. SFL's product range includes hightensile fasteners, cold extruded parts, hot forged components, powder metallurgy,...
|2017-09-07||Sundram Fasteners Ltd. +||Joindre Capital Services||600.00||Target met||Buy|
Joindre Capital Services
SFL reported a steady set of Q1FY18 numbers with net sales up by 11% YoY to Rs 788.82 crs, with EBIDTA placed at Rs 156.32 crs from Rs 139.96 crs in Q1 last year. The PAT in Q1 FY18 grew by 19% YoY to Rs 90.17crs as compared to Rs 75.55 crs in Q1 last year. For FY17 the company has recorded net sales of Rs 3290 crs, a EBIDTA of Rs 596.2 crs and a PAT of Rs 341.15 crs from Rs 125.08 crs last year. SFL has paid a dividend of 450% for FY17...
|2017-08-14||Sundram Fasteners Ltd. +||Choice India||386.50||450.00||386.50 (44.18%)||Target met||Buy|
Outlook The Indian Auto Component industry is expected to grow by 8-10 % in FY18. During FY13-17 SFL, operating income grew at CAGR of 7.4% due to increase in domestic and export sales while EBITDA grew at a CAGR of 22.4% over the same period. EBITDA margins of the company are consistently improving and stood at 16.9% in FY17 as compared to 10% in FY13, representing an expansion of around 7ppts. Margin expansion was primarily driven by the reduction in cost of raw material consumed and increased productivity. Cost of raw material increased at a lower rate as compared to the top-line by 0.8%, while employee expenses increased...
|2016-10-14||Sundram Fasteners Ltd. +||Dynamic Levels||289.00||330.00||289.00 (92.82%)||Target met||Buy|
|2016-07-02||Sundram Fasteners Ltd. +||HDFC Securities||187.85||215.00||187.85 (196.65%)||Target met||Buy|
|2015-09-09||Sundram Fasteners Ltd. +||Way2Wealth||169.65||169.65 (228.47%)|
Domestic business:: The Company generates ~60% of its sales from domestic business (CV ~22%, PV ~14%, 2W~ 10%, Tractor~ 5%, after sales ~10%). Its clients include Tata motors, M&M;, Ashok Leyland, Maruti, Cummins etc. It...