Sundaram Clayton Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Sundaram Clayton Ltd trades at ₹1,380, in a downtrend and 51 weeks into that stage. That is −4.1% against its own 200-day average. It sits at 35% of a 52-week range of ₹1,159 to ₹1,789. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 1 straight week.

Today the stock is in a downtrend — week 51 of stage 4, confirmed. At ₹1,380 it trades −4.1% versus its 200-day average and sits at 35% of its 52-week range (₹1,159–₹1,789).

Against the market, two honest reads. Cumulative: over the last 2.6 years the stock moved −9% while the NIFTY 500 moved +20% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 1 straight week — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: how the P/E reads against its own history.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

P/E does not price Sundaram Clayton Ltd — earnings are negative, so there is no multiple to rank against its own history. The revenue and margin lines below are where a turn, when it comes, would show first. On sales the market values Sundaram Clayton Ltd at 1.5× its FY26 revenue of ₹2,026 Cr.

With earnings negative, P/E does not price — there is no multiple to rank against its own history. The revenue and margin lines below are where the turn, when it comes, will show first.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Sundaram Clayton Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 8 quarters across 2 curves, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

The latest quarter’s profit carries a one-off item larger than the operating base, so the profit curve is shown but does not vote in the stage call.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

35.1/100 — rank 16 of 19 in Castings, Forgings & Fastners · 79% evidence confidence

Sundaram Clayton Ltd scores 35.1 out of 100 against the 19 companies it is compared with in Castings, Forgings & Fastners, ranking 16. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 18.7 + 2 + 11.5 + 2.9 = 35.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Sundaram Clayton Ltd reported ₹518 Cr of revenue in the Mar 26 quarter, −11.8% year on year. Over 9 years it has compounded at −19.8% a year. The last full year, FY26, came in at ₹2,026 Cr. The last four reported quarters add to ₹2,026 Cr.

Sundaram Clayton Ltd reported ₹518 Cr of revenue in the Mar 26 quarter, −11.8% year on year. Over 9 years it has compounded at −19.8% a year. The last full year, FY26, came in at ₹2,026 Cr. The last four reported quarters add to ₹2,026 Cr.

FY26 revenue came in at ₹2,026 Cr (−10.3% on the year), capping 9 years at −19.8% compound. The latest quarter (Mar 26) printed ₹518 Cr, −11.8% year on year.

Pace check: the last four quarters averaged −10.2% growth against the decade's −19.8% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −10.3% over the last 4 quarters against +2.6%/yr over the last 8 — rolling over.

→ Revenue slipped — did margins hold as it scaled? Next: 8.0% this quarter (+3.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Sundaram Clayton Ltd's operating margin is 8.0% in the Mar 26 quarter, +3.0 percentage points against the same quarter a year ago. Across 8 fiscal years the operating margin has ranged 2.0% to 12.0%. The current quarter sits inside that band.

Sundaram Clayton Ltd's operating margin is 8.0% in the Mar 26 quarter, +3.0 percentage points against the same quarter a year ago. Across 8 fiscal years the operating margin has ranged 2.0% to 12.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 8.0%, +3.0 pp against the same quarter a year ago. Across 8 fiscal years the operating margin has ranged 2.0%–12.0%.

Why the margin moved: operating margin went +2.2 pp year on year while gross margin went +3.9 pp — the gain came mostly from the gross line: input costs and pricing.

→ Margins held — did that reach the bottom line? Next: profit +195.8% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Sundaram Clayton Ltd earned ₹426 Cr of net profit in the Mar 26 quarter, +195.8% year on year. Full-year FY26 profit was ₹252 Cr. The 9-year compound rate is −8.3%. That is 82.2% of the quarter's revenue. The same quarter a year earlier earned ₹144 Cr. 10 of the last 12 reported quarters were loss-making.

Sundaram Clayton Ltd earned ₹426 Cr of net profit in the Mar 26 quarter, +195.8% year on year. Full-year FY26 profit was ₹252 Cr. The 9-year compound rate is −8.3%. That is 82.2% of the quarter's revenue. The same quarter a year earlier earned ₹144 Cr. 10 of the last 12 reported quarters were loss-making.

Mar 26 profit was ₹426 Cr, +195.8% year on year. On the full year, FY26 printed ₹252 Cr (null), and the 9-year compound rate is −8.3%.

→ Profit rose — but did the cash follow? Next: 81% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 81% of Sundaram Clayton Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹−4.0 Cr of operating cash against ₹252 Cr of profit. After ₹264 Cr of capital spending, ₹−268 Cr was left as free cash.

FY26: operating cash of ₹−4.0 Cr against reported profit of ₹252 Cr, leaving free cash of ₹−268 Cr after ₹264 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 81% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 81%: the cash cycle tightened 27 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 2.5× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹1,193 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Sundaram Clayton Ltd's cash conversion cycle runs 67 days in FY26, down from 94 days in FY21. Capital spending ran ₹1,193 Cr over the last 3 years. At FY26 sales of ₹2,026 Cr each day of that cycle holds about ₹5.6 Cr, so roughly ₹372 Cr sits inside the business at any moment.

FY26: debtors at 66 days, inventory at 164 days — roughly 5.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 67 days, tighter than FY21's 94.

The full loop: cash goes out to suppliers and production on day 0; stock waits 164 days to sell; customers pay about 66 days after that; and suppliers themselves are paid at 163 days — netting out to the 67-day cycle.

In money terms: at FY26 sales of ₹2,026 Cr, each day of the cycle holds about ₹5.6 Cr — so the 67-day loop keeps roughly ₹372 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1,193 Cr over the last 3 fiscal years against ₹482 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹49.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is −3% and the ROIC − WACC spread is −15.0 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Sundaram Clayton Ltd earns a ROCE of −3% in FY26. Return on invested capital clears the cost of that capital by −15.0 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 12.4% net margin on 0.62× asset turns.

FY26 ROCE is −3%.

🚨 Why the return is what it is — the wiring (FY26): 12.4% net margin × 0.62× asset turns × 2.53× balance-sheet leverage ≈ 19.5% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: −3.0% − 12.0% = a −15.0 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 1.00.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Sundaram Clayton Ltd carries total debt of ₹1,298 Cr against shareholder equity of ₹1,295 Cr as of Mar 26, a debt-to-equity of 1.00. On the annual view that ratio went from 2.38 in FY24 to 1.00 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹1,298 Cr against shareholder equity of ₹1,295 Cr — a debt-to-equity of 1.00. On the annual view, debt-to-equity went from 2.38 (FY24) to 1.00 (FY26). Read the returns on this page with that leverage in mind.

→ Who owns this, and are they adding or leaving? Next: Promoters cut 8.4 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 8.4 points of Sundaram Clayton Ltd over 8 quarters, the biggest move on the register. That takes promoters to 59.1% of the company. Domestic institutions moved +6.3 points over the same window, to 20.7%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −8.4 points over 8 quarters to 59.1%; Domestic institutions: +6.3 points over 8 quarters to 20.7%; Foreign institutions: +0.5 points over 8 quarters to 0.9%.

🚨 Why the register moved: promoters drove it (−8.4 points), absorbed on the other side by domestic institutions (+6.3 points) — distribution into the market’s bid.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Sundaram Clayton Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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