Sundram Fasteners 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.

Sundram Fasteners Ltd trades at ₹1,270, in a confirmed uptrend and 6 weeks into that stage. That is +29.1% against its own 200-day average. It sits at 100% of a 52-week range of ₹763 to ₹1,270. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 15 straight weeks.

Today the stock is in a confirmed uptrend — week 6 of stage 2, confirmed. At ₹1,270 it trades +29.1% versus its 200-day average and sits at 100% of its 52-week range (₹763–₹1,270).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +773% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 15 straight weeks — 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.

Story check

Sundram Fasteners Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: EARLY_EXPANSION. Our fortnightly research layers last read it on 22 August 2026.

Our read, 22 August 2026. Precision fastener and powertrain manufacturer in an early operating expansion, with non-auto scaling and North American truck recovery offset by elevated valuation, working-capital intensity, and capex execution risk.

From the numbers. The deterministic normalized read is EARLY_EXPANSION and FAIRLY_PRICED. Its trailing-PE series ends at 41.6x, with normalized PE of 39.9x at the 63rd percentile and trailing PE at the 69th percentile. The separate…

From the price. Price stage 2, week 6 — above its 200-day line, relative strength rising.

From the research. Precision fastener and powertrain manufacturer in an early operating expansion, with non-auto scaling and North American truck recovery offset by elevated valuation, working-capital intensity, and capex execution risk.

🚨 Where they disagree. The deterministic normalized read is EARLY_EXPANSION and FAIRLY_PRICED. Its trailing-PE series ends at 41.6x, with normalized PE of 39.9x at the 63rd percentile and trailing PE at the 69th percentile. The separate weekly PE snapshot is 33.6x; this source difference is retained explicitly.

What is proven. Precision fastener and powertrain manufacturer in an early operating expansion, with non-auto scaling and North American truck recovery offset by elevated valuation, working-capital intensity, and capex execution risk.

What is not proven yet. Consolidated operating margin below 14.0%, cancelled North American Class 8 schedules, wind fastener revenue failing to advance toward the stated ₹500 Cr annualized target, or further expansion in cash-conversion-cycle days without revenue conversion.

🚨 What would change our mind. Consolidated operating margin below 14.0%, cancelled North American Class 8 schedules, wind fastener revenue failing to advance toward the stated ₹500 Cr annualized target, or further expansion in cash-conversion-cycle days without revenue conversion.

Layer 1 read, 22 August 2026 — KEEP. The profit turn is real and factory-made, but only two quarters old — and the shares are not cheap. Sundram Fasteners has genuinely turned: revenue jumped 20.4% to Rs 1,846 Cr in the June quarter with per-share profit at Rs 8.01, after nine quarters of going nowhere. I checked whether that profit was real by pulling the quarterly accounts myself, and it is — operating profit rose from Rs 247 Cr to Rs 286 Cr while one-off 'other income' actually fell from Rs 20 Cr to Rs 9 Cr, so the factory is doing the work, not the treasury desk. The catch is price and promises: at 41.6 times earnings the shares sit in the dearer third of their own ten-year range, management has already missed its FY26 revenue promise (delivered 5.6% against a 'double-digit' guide) and quietly raised this year's capital…

What would change Layer 1’s mind. Two more quarters of revenue back at the old Rs 1,500-1,550 Cr run-rate would kill it outright — that would say the March and June steps were customer-schedule timing, not a cycle turn, exactly as management hinted when it said the run-rate stays 'around current levels' against a high second-half base. Short of that, inventory days pushing past 185 while revenue stops growing, or consolidated operating margin dropping under 14%, would break the thesis.

Layer 2 read, 22 August 2026 — ADVANCE. Demand and diversification support another round, but Q2 must prove the promised margin recovery.

What would change Layer 2’s mind. Move ADVANCE to DROP if the Q2 FY27 call shows customer pass-through failed and consolidated margin fell below 14%, tripping the Timeline's core falsification test.

Layer 3 read, 22 August 2026 — BENCH. The business is growing, but EV timing and capex promises are not firm enough for the modelled price. Q1 revenue rose 20.4% and profit rose 14.2%, but the US EV ramp moved to 2027 and the social-triggered search returned no confirming evidence. Input inflation is manageable rather than acute, yet the FY27 capex plan rose from about Rs 250 Cr to about Rs 400 Cr, keeping management on WATCHLIST.

What would change Layer 3’s mind. A confirmed cancellation or material reduction of the US EV order programme, rather than a timing delay, would escalate Timeline R2 to HIGH and flip BENCH to DROP.

The test written in advance. Consolidated operating margin below 14.0%, cancelled North American Class 8 schedules, wind fastener revenue failing to advance toward the stated ₹500 Cr annualized target, or further expansion in cash-conversion-cycle days without revenue conversion. — the thesis as written as stated by the next result.

The test written in advance. West Asia Conflict & Input-Cost Inflation — West Asia Conflict & Input-Cost Inflation OPM below 15% for two consecutive quarters. by the next result.

The test written in advance. Global Electric Vehicle Program Deferrals — Global Electric Vehicle Program Deferrals Export revenue misses management's FY27 channel-growth targets. by the next result.

What the company does. Core automotive operations target 2-3 percentage points of growth above domestic vehicle industry growth through market-share and content gains. Non-auto diversification across wind energy and aerospace targets higher-margin revenue, though execution toward the stated revenue milestones remains to be demonstrated. The normalized cycle read is fairly priced: 15.5% OPM is below normalized 16.5%, but normalized PE remains 39.9x and at the 63rd percentile.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

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

Sundram Fasteners Ltd reported ₹1,846 Cr of revenue in the Jun 26 quarter, +20.4% year on year. That is the 10th straight quarter of year-on-year growth. Over 10 years it has compounded at 6.8% a year. The last full year, FY26, came in at ₹6,289 Cr. The last four reported quarters add to ₹6,601 Cr.

Why this happened. Wind fasteners are targeted to rise from ₹350 Cr annualized revenue toward ₹500 Cr, while aerospace is above ₹100 Cr this year with a stated path toward ₹500 Cr in 2-3 years. Management said non-auto carries a 100-200 bps profitability premium over automotive and shorter domestic working-capital cycles.

FY26 revenue came in at ₹6,289 Cr (+5.6% on the year), capping 10 years at 6.8% compound. The latest quarter (Jun 26) printed ₹1,846 Cr, +20.4% year on year — the 10th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +10.1% growth against the decade's 6.8% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +10.2% over the last 4 quarters against +7.1%/yr over the last 8 — accelerating; TTM profit +12.2% vs +6.7%/yr — accelerating.

FY26-Q4. revenue ₹1,693 Cr and profit ₹161 Cr as reported.

FY27-Q1. revenue ₹1,846 Cr and profit ₹169 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

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.

Sundram Fasteners Ltd's operating margin is 16.0% in the Jun 26 quarter, +0.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 7.0% to 18.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 16.0%, +0.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 7.0%–18.0%.

🚨 Why the margin moved: operating margin went −0.6 pp year on year while gross margin went −1.3 pp — the loss came mostly from the gross line: input costs and pricing.

FY26-Q4. revenue ₹1,693 Cr and profit ₹161 Cr as reported.

FY27-Q1. revenue ₹1,846 Cr and profit ₹169 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

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

Sundram Fasteners Ltd earned ₹169 Cr of net profit in the Jun 26 quarter, +14.2% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹593 Cr. The 10-year compound rate is 16.8%. That is 9.2% of the quarter's revenue. The same quarter a year earlier earned ₹148 Cr.

Jun 26 profit was ₹169 Cr, +14.2% year on year — the 2nd consecutive quarter of growth. On the full year, FY26 printed ₹593 Cr (+9.4%), and the 10-year compound rate is 16.8%.

Why profit moved: revenue contributed +20.4% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +12.6% vs revenue +10.1%. Profit and revenue are moving roughly in step.

FY26-Q4. revenue ₹1,693 Cr and profit ₹161 Cr as reported.

FY27-Q1. revenue ₹1,846 Cr and profit ₹169 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

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 111% of Sundram Fasteners Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹837 Cr of operating cash against ₹593 Cr of profit. After ₹398 Cr of capital spending, ₹439 Cr was left as free cash.

FY26: operating cash of ₹837 Cr against reported profit of ₹593 Cr, leaving free cash of ₹439 Cr after ₹398 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 111% 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 111%: the cash cycle stretched 63 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 1.8× depreciation over three years, so the next section's job is to check what that build-out is buying.

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).

Sundram Fasteners Ltd's cash conversion cycle runs 173 days in FY26, up from 110 days in FY21. Capital spending ran ₹1,190 Cr over the last 3 years. At FY26 sales of ₹6,289 Cr each day of that cycle holds about ₹17.2 Cr, so roughly ₹2,981 Cr sits inside the business at any moment.

FY26: debtors at 89 days, inventory at 175 days — roughly 5.8 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 173 days, looser than FY21's 110.

The full loop: cash goes out to suppliers and production on day 0; stock waits 175 days to sell; customers pay about 89 days after that; and suppliers themselves are paid at 91 days — netting out to the 173-day cycle.

In money terms: at FY26 sales of ₹6,289 Cr, each day of the cycle holds about ₹17.2 Cr — so the 173-day loop keeps roughly ₹2,981 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1,190 Cr over the last 3 fiscal years against ₹673 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹112 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.

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.

Sundram Fasteners Ltd earns a ROCE of 18% in FY26. That is up from a trough of 15% in FY14. Return on invested capital clears the cost of that capital by +0.7 percentage points, so growth here adds value rather than only size. The wiring behind it is 9.4% net margin on 1.06× asset turns.

FY26 ROCE is 18%, recovered from a FY14 trough of 15% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 9.4% net margin × 1.06× asset turns × 1.39× balance-sheet leverage ≈ 13.8% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 12.7% − 12.0% = a +0.7 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. Positive but thin — value creation with little room for error.

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.

Sundram Fasteners Ltd carries total debt of ₹625 Cr against shareholder equity of ₹4,298 Cr as of Mar 26, a debt-to-equity of 0.15 — effectively unlevered. On the annual view that ratio went from 0.29 in FY22 to 0.15 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹625 Cr against shareholder equity of ₹4,298 Cr — a debt-to-equity of 0.15. On the annual view, debt-to-equity went from 0.29 (FY22) to 0.15 (FY26). The returns on this page are earned, not borrowed.

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.

Domestic institutions added 3.6 points of Sundram Fasteners Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 22.3% of the company. Foreign institutions moved −1.8 points over the same window, to 11.4%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +3.6 points over 8 quarters to 22.3%; Foreign institutions: −1.8 points over 8 quarters to 11.4%; Promoters: −1.6 points over 8 quarters to 46.9%.

Why the register moved: rotation — foreign institutions −1.8 points against domestic institutions +3.6 points over 8 quarters, with promoters −1.6 points — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

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.

Sundram Fasteners 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.

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.

Sundram Fasteners Ltd trades at 43.0× P/E, at the pricey end of its own range (73rd percentile). Its long-run median P/E is 36.1×, measured across 10.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 43.0× is at the pricey end of its own range (73rd percentile), against a long-run median of 36.1× measured over 10.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +9.6% against a +24.0% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +7.2%/yr price move, ~+4.2%/yr came from earnings growth and ~+3.0 pp from the multiple (expanding); over 10y, of the +15.8%/yr price move, ~+11.8%/yr came from earnings growth and ~+4.0 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

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

Stage: Consistent 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).

Sundram Fasteners Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 19.1% and holding. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

4-Factor Sector Score

39.5/100 — rank 4 of 5 in Auto Ancillaries - Engine Parts · 94% evidence confidence

Sundram Fasteners Ltd scores 39.5 out of 100 against the 5 companies it is compared with in Auto Ancillaries - Engine Parts, ranking 4. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 14.1 + 12.1 + 4.6 + 8.7 = 39.5. 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.

Said versus delivered

What Sundram Fasteners Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

FY27 Capex Guidance Increased Materially · 6 August 2026. In Jan 2026, management indicated that FY27 capex would be approximately Rs. 250 crores. In Aug 2026, management stated that capex would be about 400 crores, a 60% increase from the earlier guidance, without explaining the change in project scope, customer demand, or timing.

🚨 European Export Mix Reversed from Prior Growth Trend · 6 August 2026. In Jan 2026, management said Europe's share of exports had increased from approximately 20% and was approaching 25%; in May 2026, it again said Europe's share had grown over the prior 2-3 years. In Aug 2026, management reported that Europe accounted for below 20%, reversing the previously stated mix trend without explaining whether this reflected weaker European business or faster growth elsewhere.

Raw-Material Cost Outlook Shifted from Stable to Inflationary · 6 August 2026. May 2026 management characterized raw-material costs as broadly stable, with no significant inflation expected in the coming quarter. In Aug 2026, management instead described inflation across direct and indirect inputs, attributed it to the West Asia conflict, and quantified the impact at Rs. 20 crores to Rs. 25 crores at the top line; it did not explain what had changed beyond the conflict reference.

FY27 Capital Expenditure Guidance Raised Without Explanation · 5 May 2026. In the Jan 2026 call, CFO R. Dilip Kumar explicitly guided FY27 capital expenditure at approximately Rs. 250 crores, describing it as the expected annual run rate and a clear step-down from the FY26 level of approximately Rs. 350 crores. The May 2026 call contradicts this by characterizing the company's ongoing investment level as no less than Rs. 300 crores year-on-year, a minimum 20% increase over the prior specific guidance, with no explanation provided for the upward revision and direct implications for free cash flow forecasts.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions