Sundram Fasten. (SUNDRMFAST)
Slow GrowerFairStock Score: 58/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,217.6 |
| Market Cap | ₹25,585.23 Cr |
| P/E Ratio | 41.84 |
| ROCE | 17.14% |
| ROE | 14.55% |
| Dividend Yield | 0.7% |
| Profit Growth | 13.5% |
| Debt/Equity | 0.15 |
| Sales Growth | 20.4% |
| Free Cash Flow | ₹42 Cr |
| Promoter Holding | 46.94% |
| 52-Week Range | ₹730.1 — ₹1,346.45 |
| Sector | Auto Components |
| Book Value | ₹203.45 |
Strengths
- ROE of 14.55% and ROCE of 17.14% show efficient capital use in the auto components business.
- Low leverage: debt/equity of 0.18, Altman Z-Score of 4.35, and Piotroski F-Score of 8/9 indicate solid financial health.
- Promoter holding of 46.94% keeps management aligned with minority shareholders.
- Five-year revenue CAGR of 10.32% demonstrates a decent historical growth track record.
Concerns
- Current growth is weak: sales growth of only 3.99% and profit growth of 1.09%.
- Valuation is expensive: P/E of 32.54, P/B of 4.54, EV/EBITDA of 79.92, and PEG of 24.10.
- Intrinsic estimates are far below price: Graham Number ₹328.01, DCF value ₹31.30, and margin of safety at -166.20%.
- Free cash flow of ₹42 Cr is low compared to quarterly net profit of ₹131 Cr, suggesting earnings quality concerns.
AI Analysis
At ₹823.90, Sundram Fasten is not a stock that would excite me as a value investor. The market is asking ₹18,347 Cr for the entire company, yet latest sales growth is just 3.99% and profit growth 1.09%. Five-year revenue CAGR of 10.32% shows the business has compounding ability, but the current speed has slowed sharply. Graham taught me to measure the margin of safety. Here I find none: book value is ₹181.33, Graham number ₹328.01, DCF value ₹31.30, and the stated margin of safety is -166.20%. Paying 32.54 times earnings and 4.54 times book for a low-single-digit grower is speculation, not investment. The quality side is respectable: ROE 14.55%, ROCE 17.14%, debt/equity 0.18, and a Piotroski F-Score of 8/9. Altman Z of 4.35 says the balance sheet is safe. Promoters own 46.94%, so interests are aligned. But the price already celebrates all the good news. EV/EBITDA at 79.92 and PEG at 24.10 are not numbers a disciplined buyer can justify. Also, free cash flow of ₹42 Cr is far below the latest quarter's net profit of ₹131 Cr, so reported earnings are not converting cleanly into cash. If growth stays muted, the high multiple is a dangerous trap. I prefer to wait for a lower price or a genuine growth revival. This is a good business, but at this price, a poor investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer