FOR MORE DETAILS ON TECHNICALS PLEASE READ THE BELOW SECTION ON TECHNICAL ANALYSIS
CHART PATTERN: FALLING WEDGE
MOVING AVERAGE:
9 DAYS MOVING AVERAGE: RED LINE
21 DAYS MOVING AVERAGE: BLUE LINE
SUPER TREND: BUYING SIGNAL
Established in 1966.
Manufactures critical, high precision components for the automotive, infrastructure, windmill, and aviation sectors.
Competes in markets of India, China, Germany, USA, UK, Italy, France, and Brazil.
Subsidiary of TVS Group of companies.
TVS was established in 1911.
It has 6 domestic subsidiaries and 5 overseas subsidiaries.
Developed and introduced new products in technical collaboration with Neumeyer, Germany.
2000 TPA automotive powder metal components were developed with a technical collaboration with Sinter Metalwerke, Germany.
Export unit for manufacturing radiator caps, oil filler caps and petrol filler caps for General Motors, USA.
A power generation wind farm of 2MW was developed at Muppandal in Tamil Nadu.
Signed an agreement with General Motors, USA for supplying radiator caps.
Sundram Fasteners tied up with Dura Automotive Group, USA for the manufacturing of gear shifters.
Forging business of Dana Spicer Europe Ltd was acquired.
FINANCIAL KEY METRICS
TARGET FOR THE SHARE PRICE:
Let’s have a complete understanding of Sundram Fasteners.
Table of Contents
BUSINESS ANALYSIS
Sundram Fasteners was established in 1966.
The company is into manufacturing critical, high precision components for the automotive, infrastructure, windmill, and aviation sectors.
Sundram Fasteners have a diversified portfolio in productions which consist of fasteners, power train components, sintered metal products, iron powder, cold extruded parts, water pumps, radiator caps, oil pumps and wind energy components.
The company is competing in markets of India, China, Germany, USA, UK, Italy, France, and Brazil.
Sundram Fasteners is a subsidiary of TVS Group of companies.
TVS was established in 1911 and from that time the company has never seen a downfall in expanding its portfolio and becoming India’s largest automotive component manufacturer.
At present the company has 6 domestic subsidiaries and 5 overseas subsidiaries.
KEY BUSINESS POINTS
In 1982, the company developed and introduced new products in technical collaboration with Neumeyer, Germany.
2000 TPA automotive powder metal components were developed with a technical collaboration with Sinter Metalwerke, Germany.
In 1992, Sundram Fasteners set up an export unit for manufacturing radiator caps, oil filler caps and petrol filler caps for General Motors, USA.
In 1994, a power generation wind farm of 2MW was developed at Muppandal in Tamil Nadu.
In 1997, Sundram Fasteners signed an agreement with General Motors, USA for supplying radiator caps.
In the year 1998-99, Sundram Fasteners tied up with Dura Automotive Group, USA for the manufacturing of gear shifters.
The company had acquired 51.09% in Autolec Industries in the year 1999-2000.
A factory was set in Haiyan Economic Development Zone (HEDZ), South China to manufacture and sell high tensile fasteners to the Chinese automobile industry in the year 2003-04. This was the first project setup which was built by an Indian Engineering industry in China.
Forging business of Dana Spicer Europe Ltd was acquired by Sundram Fasteners for USD 2.64 million.
Sundram Fasteners received TAFE- Best Supplier Award for Quality and Reliability in the year 2018.
The company is receiving the Supplier Quality Excellence Award from General Motors for its precise and accurate work.
Now, coming to the financials of the Sundram Fasteners share price.
FINANCIAL KEY METRICS
The Market Capitalization of Sundram Fasteners is ₹ 16,257 Cr.
The Sundram Fasteners has a price to earnings ratio of 32.2 which is slightly greater than the industry price to earnings ratio of 26.6.
The return on capital employed of the Sundram Fasteners is 17.0% which is above average and shows that the company is providing decent returns on the capital invested in it.
The return on equity of Sundram Fasteners is 16.4% showcasing the company’s strong return on the investment done by their investors.
The debt to equity ratio of Sundram Fasteners is 0.30 which is manageable by the company.
FINANCIAL ANALYSIS
For the quarter ended 30-06-2021, Sundram Fasteners reported a sales of Rs 1,112 Cr.
The sales of the company were down by almost 13% from last quarter sales of Rs 1,273 Cr.
The net profit of Sundram Fasteners was Rs 120 Cr in the latest quarter ended 30-06-2021.
The earning per share of the company is Rs 5.69 which is as per the quarter ended 30-06-21.
SHARE HOLDING SYNOPSIS
PROMOTERS – 49.53%.
FIIs – 11.14%.
DIIs – 17.37%.
PUBLIC – 21.95%.
Sundram Fasteners stands tall at 1st position as per the current market capitalization.
This is a brief overview of the financials of the Sundram Fasteners which shows the dominance in their respective market.
Now, let’s deep dive into the technical of Sundram Fasteners.
CHART PATTERN ANALYSIS
If we take a closer look at the chart in a daily time frame, a falling wedge pattern is formed.
The breakout is about to be achieved.
For Sundram Fasteners there is 1 target as stated in the above image.
The Sundram Fasteners share price on 26th August 2021 is Rs 773.
MOVING AVERAGE
For Sundram Fasteners share price analysis, we are taking 9 days and 21 days moving average.
In the history of Sundram Fasteners share price, whenever the 9 days moving average crosses the 21 days moving average there is a change in the trend of the share.
The 9 days and 21 days moving average are trading near to each other which shows that the stock will start its upward trend in a very short span of time.
The red line indicates the 9 days moving average while blue shows the 21 days moving average.
SUPER TREND
The super trend is suggesting a buying signal in the daily timeframe.
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