ATS Company Reports: Sundram fastners ltd. Access Company Reports here: http://www.adityatrading.in/Research-Reports.aspx

2. Current price 174.70
Sector Fasteners
No of shares 210128370
52 week high 219.00
52 week low 50.70
BSE Sensex 28469.67
Nifty 8634.65
Average Volume 45204
BSE Code 500403
NSE Symbol SUNDRMFAST
Sundram Fasteners Ltd.
Recommendation
– BUY/HOLD
Date – 19/03/2015

3. Company Overview
Sundram Fasteners Limited is a part of the US $5 billion TVS Group, headquartered in Chennai,
India. The Company has established a track record of leadership over 40 years. With a
diversified product line, world-class facilities in 4 countries and motivated team of talented
people, Sundram Fasteners has become a supplier of choice to leading customers in the
automotive and industrial segments worldwide..
The product range consists of high-tensile fasteners, powder metal components, cold extruded
parts, hot forged components, radiator caps, automotive pumps, gear shifters, gears and
couplings, hubs and shafts, tappets and iron powder. Over the years, the Company has
acquired cutting-edge technological competencies in forging, metal forming, close-tolerance
machining, heat treatment, surface finishing and assembly.
Manufacturing locations are supported by engineering and design personnel working on new
product design and development. It has operations in India, China, the United Kingdom,
Malaysia, Germany, and the United States. Understanding the global nature of business and the
need to provide quality products on “just in time” basis to customers, the company has
established supply chain logistics networks spanning several continents.
The current market capitalisation stands at Rs 3,721.37 crore. The company has reported a
standalone sales of Rs 575.46 crore and a Net Profit of Rs 30.13 crore for the quarter ended
Dec 2014.

4. Category No. of Shares Percentage
Promoters 104,085,280 49.53
General Public 55,802,805 26.56
NBFC and Mutual
Funds
26,830,121 12.77
Financial
Institutions
12,683,968 6.04
Foreign Institutions 5,881,397 2.80
Other Companies 4,571,033 2.18
Others 273,766 0.13
Market Cap (Rs Cr) – 3689.25
Company P/E (x) – 25.22
Industry P/E (x) – 28.07
Book Value (Rs) – 38.16
Price / BV (x) – 4.60
Dividend (%) – 170%
EPS (TTM) – 6.99
Dividend Yield (%) – 0.97%
Face Value (Rs) – 1
Share Holding Pattern Financial Details

5. Industry Overview
Fasteners form a vital part of any structure as they help in joining two or more components together. Economic
development in India has led to a rise in disposable income of consumers which in turn has resulted in
growing demand for automobiles. This factor is expected to be one of the primary reasons driving the growth
of the market. In addition, rise in construction and maintenance activities all across the world is expected to be
an important factor which will boost the demand for fasteners over the forecast period. Development of
fasteners which are customized for niche application segments such as railways and solar equipment is
expected to open opportunities for the growth of the market within the forecast period.
Automobile industry accounts for 75 per cent of the total demand of this industry followed by consumer
durables and railways. With the automotive industry witnessing a significant growth rate along with increasing
global demand, the future of the Indian fastener industry is very promising. Other OEM segments such as
electronic and electrical, fabricated metal products and aerospace equipments were the largest application
segments of fasteners and accounted for over 30% of the demand in 2011.
However, demand for fasteners is expected to be highest from construction on account of the rising
construction and maintenance activities worldwide. The construction application segment is expected to grow
at a CAGR of over 9% from 2012 to 2018. Automotive OEM sector is expected to show above average growth
within the forecast period.
Asia Pacific accounted for the highest demand for industrial fasteners in 2012 and is expected to account for
over 45% of the market by 2018. The trend is expected to continue over the next six years due to factors such
as rapid industrialization and favorable economic conditions, which is expected to boost the demand for
durable goods and other manufacturing and development activities.

6. Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Sources Of Funds
Total Share Capital 21.01 21.01 21.01 21.01 21.01
Equity Share Capital 21.01 21.01 21.01 21.01 21.01
Reserves 754.63 673.28 612.45 533.94 459.14
Networth 775.64 694.29 633.46 554.95 480.15
Secured Loans 306.09 338.93 344.19 649.66 369.39
Unsecured Loans 291.90 370.28 351.68 99.95 198.52
Total Debt 597.99 709.21 695.87 749.61 567.91
Total Liabilities 1,373.63 1,403.50 1,329.33 1,304.56 1,048.06
Application Of Funds
Gross Block 1,380.03 1,231.79 1,133.13 1,010.96 910.89
Less: Accum. Depreciation 597.56 524.16 460.34 403.15 350.75
Net Block 782.47 707.63 672.79 607.81 560.14
Capital Work in Progress 20.53 21.41 40.09 50.04 19.64
Investments 123.16 132.02 142.63 142.37 142.39
Inventories 290.18 321.18 323.98 286.93 209.53
Sundry Debtors 405.77 432.92 433.52 364.55 260.37
Cash and Bank Balance 9.21 10.59 6.71 8.13 4.65
Total Current Assets 705.16 764.69 764.21 659.61 474.55
Loans and Advances 217.82 219.55 189.66 144.07 121.21
Fixed Deposits 0.00 0.00 0.00 0.46 0.38
Total CA, Loans & Advances 922.98 984.24 953.87 804.14 596.14
Current Liabilities 435.10 408.29 448.62 277.54 253.52
Provisions 40.40 33.52 31.42 22.25 16.73
Total CL & Provisions 475.50 441.81 480.04 299.79 270.25
Net Current Assets 447.48 542.43 473.83 504.35 325.89
Total Assets 1,373.64 1,403.49 1,329.34 1,304.57 1,048.06
Contingent Liabilities 69.60 102.38 63.04 26.00 80.96
Book Value (Rs) 36.91 33.04 30.15 26.41 22.85
Balance Sheet

7. Profit and Loss Account
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Income
Sales Turnover 2,022.28 2,069.42 2,146.64 1,944.81 1,421.93
Excise Duty 0.00 0.00 0.00 136.42 88.07
Net Sales 2,022.28 2,069.42 2,146.64 1,808.39 1,333.86
Other Income 38.72 27.58 18.07 -1.26 15.43
Stock Adjustments -6.63 -3.18 39.81 25.99 2.27
Total Income 2,054.37 2,093.82 2,204.52 1,833.12 1,351.56
Expenditure
Raw Materials 1,107.88 1,192.65 1,290.26 1,064.77 761.60
Power & Fuel Cost 111.45 119.16 90.37 86.95 62.29
Employee Cost 218.23 201.91 184.24 158.97 124.27
Other Manufacturing Expenses 0.00 0.00 0.00 168.16 113.61
Selling and Admin Expenses 0.00 0.00 0.00 72.07 91.56
Miscellaneous Expenses 321.97 295.19 326.48 59.54 14.99
Total Expenses 1,759.53 1,808.91 1,891.35 1,610.46 1,168.32
Operating Profit 256.12 257.33 295.10 223.92 167.81
PBDIT 294.84 284.91 313.17 222.66 183.24
Interest 58.58 81.35 92.20 23.90 27.91
PBDT 236.26 203.56 220.97 198.76 155.33
Depreciation 76.37 71.62 63.61 54.54 47.48
Profit Before Tax 159.89 131.94 157.36 144.22 107.85
PBT (Post Extra-ord Items) 159.89 131.94 157.36 144.47 107.43
Tax 39.00 36.88 44.75 39.07 32.42
Reported Net Profit 120.89 95.06 112.60 105.18 75.43
Total Value Addition 651.65 616.26 601.10 545.68 406.72
Equity Dividend 35.72 29.42 29.42 26.27 18.91
Corporate Dividend Tax 4.20 4.82 4.67 4.36 3.17
Per share data (annualised)
Shares in issue (lakhs) 2,101.28 2,101.28 2,101.28 2,101.28 2,101.28
Earning Per Share (Rs) 5.75 4.52 5.36 5.01 3.59
Equity Dividend (%) 170.00 140.00 140.00 125.00 90.00

8. Dividend and Bonus History

9. Index and Company Price Movement Comparison

10. Company Forecast

11. Symbol Value Action
RSI(14) 75.469 Overbought
STOCH(9,6) 76.941 Buy
STOCHRSI(14) 52.559 Neutral
MACD(12,26) 36.330 Buy
ADX(14) 80.079 Overbought
Williams %R -22.825 Buy
CCI(14) 84.8056 Buy
ATR(14) 26.7893 High Volatility
Highs/Lows(14) 33.7929 Buy
Ultimate Oscillator 51.526 Buy
ROC 298.210 Buy
Bull/Bear Power(13) 80.7140 Buy
Technical Indicators

12. PBIT – 8.67 v/s 8.86
RoCE – 16.63 v/s 15.10
RoE – 15.1 v/s 13.2
Net Profit Margin – 5.83 v/s 4.53
Return on net worth – 15.58 v/s 13.69
D/E Ratio – 0.77 v/s 1.02
Interest Cover – 3.90 v/s 2.61
Current Ratio – 0.98 v/s 1.05
Reserves – 754.63 cr v/s 694.29 cr
PAT – 120.89 cr v/s 95.06 cr
Total assets – 1373.64 cr v/s 1403.49 cr
Net sales – 2022.28 cr v/s 2069.42 cr
Book Value – 36.91 v/s 33.04
Important Ratios (YoY)
Days BSE NSE
30 185.06 185.28
50 190.69 190.96
150 170.63 170.82
200 152.77 152.92
Simple Moving Average

13. Investment Rationalize
Leading player in Indian fasteners industry with TVS group as promoters and clientele includes major Indian
companies such as Ashok Leyland, BEML, Bajaj, Tata, TVS, M&M, Maruti suzuki and international players
such as Volvo, GE, GM, Volkswagen, Ford, Mitsubishi Motors, Bosch, Caterpillar, JCB, Siemens, etc.
Company has reduced its debts and increased its production capacity, which will help the company when the
demand for products picks up.
Reduction in crude oil prices and improvement in economic cycle will help the company as the sales of
automobiles and the demand for the products increases.
Company was able to perform well in adverse circumstances and current order book from major players
ensures the consistent in foreseeable future.
Improvement in economic situations in American and European countries will add significantly to the
companies revenue as more than 38% of the revenue comes from exports.
Reduction in prices in raw materials and manufacturing expenses will increase the profit margin of the
company and Sundram Fasteners have a good dividend history.
Price to Sales Ratio of the company stands at 1.82, which means company is reasonably priced, and the
past consistent performance and future growth prospects ensures the company is reasonably priced.
Increase in revenue from fully owned subsidiaries will add to the companies profits.