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  4. /Sundaram Clayton Ltd
MomentumDeep Value

Sundaram Clayton Ltd: Is It a Deep Value Opportunity?

AverageAccelerating

As of May 17, 2026, Sundaram Clayton Ltd (Castings, Forgings & Fastners) has a deep value score of 45/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -35%.

Sundaram Clayton Ltd Key Facts

Market Cap
₹3,199 Cr
Value Score
45/100
PAT Growth YoY
+196%
Revenue Growth YoY
-12%
OPM
8.0%
Emerging Opportunity

What's Happening

⏳Steady earner with flat PE — waiting for re-rate catalyst
📊Debt increased 26% YoY — leverage rising
👔Promoter stake down 8.4% this quarter
🏛️DII accumulation — stake up 10.1%

Key Numbers

PAT Growth YoY
+196%
Inflection Up
Revenue YoY
-12%
Stable
Operating Margin
8.0%
+300 bps YoY
PEG Ratio
0.26
Current Price
₹1,451
Dividend Yield
0.33%
3Y PAT CAGR
+80%
Market Cap
3.2K Cr
Valuation
N/A

How Fast Is Sundaram Clayton Ltd Growing?

Revenue, profit and margin growth rates

MetricYoY3Y CAGRTrend
Revenue-12%0%Stable
PAT (Net Profit)+196%+80%Inflection Up
OPM8.0%+300 bpsExpanding
← Back to Castings, Forgings & FastnersAll Deep Value SectorsDashboard

Frequently Asked Questions: Sundaram Clayton Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What is Sundaram Clayton Ltd's deep value score?

Sundaram Clayton Ltd has a deep value score of 45/100 (rated Average). This score is calculated from three components

  • Earnings Score: 36/40 — measures PAT growth momentum across quarters
  • Underperformance Score: 20/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
  • Quality Score: 12/25 — operational quality (margins, revenue growth, valuation)

Is Sundaram Clayton Ltd fundamentally improving?

Sundaram Clayton Ltd's quarterly profit (PAT) growth trajectory

  • Latest Quarter PAT Growth (QoQ): +500%
  • Previous Quarter PAT Growth (QoQ): +19%
  • 2 Quarters Ago PAT Growth (QoQ): -11%
  • PAT Acceleration: +255.7pp (profits are accelerating)
  • 2 consecutive quarters of positive PAT growth

Why is Sundaram Clayton Ltd underperforming despite good earnings?

Sundaram Clayton Ltd is underperforming the market despite improving earnings — this is the core deep value thesis

  • 1-Year Return vs Nifty 500: -35%
  • 6-Month Return vs Nifty 500: +21%
  • 3-Month Return vs Nifty 500: +13%
  • Yet average quarterly PAT growth is +169% — earnings are improving
  • The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.

What is the earnings momentum for Sundaram Clayton Ltd?

Sundaram Clayton Ltd's earnings momentum is Accelerating — profit growth is speeding up.

  • PAT QoQ progression: -11% → +19% → +500% (2Q ago → 1Q ago → latest)
  • Acceleration: +255.7pp
  • PAT YoY Growth: +196%

Is Sundaram Clayton Ltd undervalued?

Sundaram Clayton Ltd's valuation metrics

  • Price-to-Earnings (PE): 12.7x
  • Price-to-Book (PB): 2.5x
  • PEG Ratio: 0.3x

What are the revenue and margin trends for Sundaram Clayton Ltd?

Sundaram Clayton Ltd's revenue and margin trends

  • Latest Quarter Revenue Growth (QoQ): +3%
  • Average Quarterly Revenue Growth: +0%
  • Revenue Acceleration: +3.3pp
  • Latest OPM Change: +0.4pp (margins expanding)
  • Average OPM Change: +1.5pp
  • Revenue YoY: -12%

What is Sundaram Clayton Ltd's trailing twelve month (TTM) performance?

Sundaram Clayton Ltd's trailing twelve month (TTM) performance

  • TTM PAT: ₹252 Cr
  • TTM PAT Growth: +100.0% YoY
  • TTM Revenue: ₹2,000 Cr
  • TTM Revenue Growth: -10.3% YoY
  • TTM Operating Margin: 5.3%

What sector does Sundaram Clayton Ltd belong to?

Sundaram Clayton Ltd key facts

  • Sector: Castings, Forgings & Fastners
  • Market Cap: ₹3.2K Cr
  • Rank in Castings, Forgings & Fastners: #1 by value score
  • Overall rank among all deep value stocks: #17

Is Sundaram Clayton Ltd a good deep value opportunity to study?

Sundaram Clayton Ltd shows limited deep value signals currently — score is 45/100 (Average). Monitor for improvement.

  • Value Score: 45/100 (Average)
  • Earnings: Accelerating
  • 1Y Underperformance: -35% vs Nifty 500

What is the bull and bear case for Sundaram Clayton Ltd?

Research Signals (Bull Case)

  • Earnings accelerating — profit growth speeding up
  • 2 consecutive quarters of positive PAT growth
  • Revenue growth also accelerating
  • Operating margins expanding

Risk Factors (Bear Case)

  • Significant underperformance (-35% vs Nifty 1Y)

How does the Castings, Forgings & Fastners sector look for deep value?

Castings, Forgings & Fastners deep value sector overview

  • 1 deep value stocks in this sector
  • Average value score: 45/100
  • Avg PAT acceleration: +255.7pp
  • Top pick: Sundaram Clayton Ltd

What is deep value investing?

Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.

How is the deep value score calculated?

The deep value score (0-100) combines three factors:

- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)

Higher score indicates a stronger contrarian research signal.

The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.