Sundram Fasten. (SUNDRMFAST)

FairStock Score: 58/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I seek a durable business at a sensible price. Sundram Fasteners has quality markers: ROCE 17.14%, ROE 14.55%, debt/equity 0.15, Piotroski F-Score 8/9, and Altman Z-Score 4.35. That tells me the balance sheet is sound and bankruptcy risk is low. Sales growth of 20.40% and profit growth of 13.50%, with latest quarter sales ₹1,541 Cr and net profit ₹131 Cr, show it is still expanding. Promoter holding of 46.94% gives some comfort. But the valuation is where I pause. At ₹1,217.60, P/E is 41.84, P/B is 5.98, dividend yield is only 0.70%, and EV/EBITDA is 79.92. The Graham Number is ₹328.01, leaving a margin of safety of -166.20%. DCF intrinsic value is ₹31.30 and PEG is 24.10. Those are not bargain numbers. The five-year revenue CAGR is only 9.85%, and free cash flow is just ₹42 Cr, so the market is pricing in much faster or more profitable growth than the recent record shows. FairStock Score 58/100 (STEADY) fits a watchlist candidate, not a buy at any price. A great business can be a poor investment if bought too dear. I would wait for a wider margin of safety or evidence that FCF and profit growth accelerate. Until then, this is a quality stalwart in a cyclical auto-components industry, but not a Graham bargain. I would call it a Stalwart because returns are steady, leverage is low, and the score is STEADY, but the cyclical end-market demands caution.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer