Monday, 12 June 2017

Target Achieved (59% Return) - SUNDRAM FASTENERS

Dear Readers, 


Sundram Fasteners was recommended at 404 Rs on 12/06/2017 for the Target of 600 Rs.
 
On 15/03/2017 Sundram Fasteners had touched the value 644 Rs and gave 59% fantastic return within 9 Months.

If comp is performing well in YOY & QOQ basis......Stock price will definitely rise.

Only we have to keep patience.

Book the full profit as my given target 600 Rs is achieved.

Happy Investing!!!!

Regards,

Kamlesh

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++


Dear Readers, 

As i am remembering that when i have published Sundram Fasteners report in June after that sundram stock value has touched to 486 Rs and one of my friend he was appreciating my recommendation but when the stock value came down to 386 in the month of Aug'17 due to market week, he call me that he is in lost.

I am sure, some of you might be feel same condition but my friends today i would like to tell you one thing that if u have invested in my given recommended stock, you will not lose anything but only condition is that you have to stay invested for the given time period.


Within a 1.5 month, Sundram stock value has increased to 529 Rs from 386 Rs (Aug'17).

Friends, Yesterday Sundram Fasteners has zoomed to 529 Rs and made a new 52 Week High and fetched 32% fantastic return.

I have recommended at 404 Rs for the target of 600 Rs which is near by to achieve.

Friends, If you have invested strong growth company ,  no need to worry and this is the stock market where you should not too much greedy and not too much fear.

Those who want to stay invested up to 600 Rs can stay other wise book the profit.


Happy Investing!!

Keep visiting my blog website plus my personal website.



Regrads,

Kamlesh

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Dear Readers, Today Sundram Fasteners zoomed after declaring 19% Net profit........ touched new 52 Week High........471 Rs.

Was recommended at 404 Rs.......Keep it hold soon you will get 500 Rs.

Happy Investing!!

Keep visiting my blog website plus my personal website.

http://kamleshstockfayada.com

Regrads,

Kamlesh


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Dear Readers, Today I am going to share one stock based on my personal stock research term and stock is meeting all the results and satisfying all my personal stock research term.





Equity Research Report – Fasteners Sector



Recommendation:Buy
Hold for 3 years
Target: 600 Rs.


Date: 12/06/2017


SUNDRAM FASTENERS LTD (SFL)

    By Kamlesh Bavrva
BSE Code: 500403
NSE Code: SUNDRMFAST
CMP: 404
Market Capital: 8494 Cr.
Face Value: 1
52 Week Low / High: 164/426
Book Value: 60.35
Price/Book Value: 6.7
Dividend Yield (%): 0.53%

Part – 1 Company Overview:


v Sundram Fasteners (SFL) was incorporated in 1962.


v It is a TVS Group company headquartered in Chennai, India.


v SFL is manufacturing automotive components and supplier to industrial segment worldwide.
v Its main customers are Maruti Suzuki, Toyota, Volkswagen, M&M, Ashok Leyland, Tata Motors, Bajaj Auto, TVS, JCB, GE, Dana, Honeywell, Ingersoll Rand, Bosch, Caterpillar.
SFL subsidiaries include:
v Upasana Engineering Ltd,
v Sundaram Fasteners Investment Ltd,
v Sundram Non-conventional Energy Systems Ltd,
v Sundram Bleistahi Ltd,
v Sundram Fasteners (Zhejiang) Ltd,
v Peiner Umformtechnik GmbH,
v Cramlington Precision Forge Ltd,
v Sundram RBI Sdn Bhd,
v Sundram International Inc,
v PUT Grundstucks GmbH, and Peiner Logistik GmbH.
The product range consists of:
v High–tensile fasteners,





v Powder metal components,





v Hot forged components,



v Radiator caps,




v Automotive pumps,



v Cold Extruded Parts




v Powder Metallurgy









v Gear shifters,

v Gears and couplings,

v Hubs and shafts, Tappets and

v Iron powder.



SFL Shareholding Pattern:



SFL Share holding Pattern
Description
Percent of Share (%)
Promoters
49.53
Individuals
27.52
Institutions
20.59
FII
0.48
Govt.
0
Others
1.88
Total
100


SFL Dividend History:


Sundram Fasteners  - Dividend Declared
Announcement
Effective
Dividend
Dividend
Remarks
Date
Date
Type
(%)
24/05/2017
10/08/2017
Final
280
Rs.2.8000 per share(280%) Dividend.
02/11/2016
10/11/2016
Interim
170
Rs.1.7000 per share(170%)Interim Dividend
09/03/2016
17/03/2016
Interim
130
Rs.1.3000 per share(130%)Second Interim Dividend
02/11/2015
13/11/2015
Interim
85
Rs.0.8500 per share(85%)Interim Dividend
29/05/2015
09/06/2015
Interim
90
Rs.0.9000 per share (90%) Second Interim Dividend
07/11/2014
17/11/2014
Interim
85
Rs.0.8500 per share(85%)Interim Dividend
30/05/2014
10/06/2014
Interim
100
Re.1.0000 per share (100%) Second Interim Dividend
01/11/2013
12/11/2013
Interim
70
Rs.0.7000 per share(70%)Interim Dividend
30/05/2013
11/06/2013
Interim
80
Rs.0.8000 per share(80%)Interim Dividend
08/11/2012
22/11/2012
Interim
60
Rs.0.6000 per share(60%)First Interim Dividend
28/05/2012
07/06/2012
Interim
80
Second Interim Dividend
31/01/2012
15/02/2012
Interim
60
First Interim Dividend
24/05/2011
06/06/2011
Interim
70
Second Interim Dividend
01/11/2010
16/11/2010
Interim
55
-
31/05/2010
10/06/2010
Interim
50
Second Interim Dividend
01/02/2010
09/02/2010
Interim
40
-
04/06/2009
16/06/2009
Interim
50
-
06/06/2008
20/06/2008
Interim
45
Second Interim Dividend
12/10/2007
05/11/2007
Interim
45
-
06/03/2007
20/03/2007
Interim
45
Second Interim Dividend
13/11/2006
30/11/2006
Interim
85
08/06/2006
22/06/2006
Interim
85
Second Interim Dividend
10/10/2005
02/11/2005
Interim
85
Interim dividend of Re. 0.85 per equity share of Re 1 each.
05/07/2005
14/07/2005
Interim
100
Second Interim Dividend
15/10/2004
04/11/2004
Interim
70
Re.0.70 per equity shares of Re.1 each (Revised)
01/07/2004
30/07/2004
Final
80
AGM
29/10/2003
28/11/2003
Interim
60
-
30/06/2003
29/08/2003
Final
120
AGM
03/09/2002
29/08/2002
Final
0
AGM & Nil Final Dividend
17/05/2002
18/06/2002
Interim
100
-
27/07/2001
14/08/2001
Final
70
AGM



Focus on - Financial Results March 2017:

v Sundram Fasteners Limited, has recorded standalone profits up to Rs 87.66 crore for the fourth quarter, ending on March 31 2017.

v For this year, ending on March 31, the standalone net profits surged to Rs 315.48 crore from the Rs 213.99 crore registered last year.

v The total income from operations for the January-March 31, 2017 quarter went up to Rs 831.56 crore from Rs 768.46 crore registered during the same time last year.

v The total income from operations for the year grew to Rs 3,173.11 crore from the Rs 2,843.99 crore registered last year.

v On the exports front, the company said sales for the year ending March 31, 2017 was at Rs 1,044.11 crore as against Rs 908.12 crore registered last year.

v The earnings per share surged to Rs 15.01 and export sales crossed Rs 1,000 crore mark during the year ending March 31, 2017.

v The Earnings Before Interest and depreciation for the current year was at Rs 560.43 crore as compared to Rs 418.91 crore registered last year.




SFL - Financial Data Based on My Research Terms:




My Investment Research Term
SUNDRAM FASTENERS LIMITED
Sr. No
Research Term
Investing Guidance
Result
1
Company Promoter Share Pldege
<5% ,   better if it is Nil
Nil
2
Last 3~5 Years -  Book Value
Should Increasing trend
Yes, Increasing trend (5 Years)
3
Last 3~5 years  -  Reserve and Surplus
Should Increasing trend
Yes, Increasing trend (5 Years)
4
Last 3~5 Years - Revenue/Net Sale
Should Increasing trend
Yes, Increasing trend (5 Years)
5
Last 3~5 Years - Net Cash Flow From Operating Activities
Should Increasing trend
Yes, Increasing trend (5 Years)
6
Debt Ratio
i
Debt/EBITDA
<3
2.1
ii
Interest Coverage Ratio
Should not be < 1
Is Not < 1
iii
Debt Ratio
<3, Debt free is better
0.54
iv
Longterm debt to total asset ratio
Decreasing Trend
Yes , Decreasing Trend
7
Liquidity Ratio
i
Acid test Ratio or Quick Ratio
>1
0.5
ii
Current Ratio
>1 is good
1.09
8
Profitability Ratio
I
Last 3~5 Year EBITDA
Should Increasing trend
Yes, Increasing trend (5 Years)
II
Last 3~ 5 year AAGR -  ROCE
>15%
33%
III
Last 3~5 Year AAGR - ROE
>15%
25%
IV
Last 3~5 Year ROA
>5%
9%
V
Last 3~5 Years - NPM
Should Increasing trend
Yes, Increasing trend (5 Years)
9
Asset Management Ratio
I
Asset Turnover
The higher number,the better
Yes higher number
10
Cash Flow Indicator Ratio
I
Free Cash Flow should be higher than Previous year
Should Increasing trend
Yes Higher Number
II
Operating cash flow to Sale ratio
Higher Number  is good
Yes Higher Number
11
Market Value Ratio
I
Avg EV/EBITDA
<10 Good Healthy
8
II
PEG Ratio
<1
1.6
12
Financial Analysis
I
AAGR - Avg Annaul Growth Rate
Last 3~ 5 Yr AAGR (Avg annaul growth rate) Sales Growth rate
> 10%
9% (5 Year)
Last 3~ 5 Yr AAGR (Avg annaul growth rate) Net Profit Growth rate
>12%
25% (5 Year)
Last 3~ 5 Yr AAGR (Avg annaul growth rate) Diluted EPS Growth rate
>15%
20% (5 Year)
II
CAGR - Compounding Annaul Growth Rate
Last 3~ 5 Yr CAGR (Compounding annaul growth rate) Sales Growth rate
>10%
11% (5 Year)
Last 3~ 5 Yr CAGR (Compounding annaul growth rate) Net Profit Growth rate
>12%
35% (5 Year)
Last 3~ 5 Yr CAGR (Compounding annaul growth rate) EBITDA Growth rate
>12%
19 % (5 Year)



Financial Chart:

Year
Sales or Operating Revenue Growth (Cr.)
2007
1199.44
2008
1205.92
2009
1262.2
2010
1333.86
2011
1810.72
2012
2146.64
2013
2069.42
2014
2022.28
2015
2385.76
2016
2606.58
2017
3159.91






Year
Net Profit
2007
71.86
2008
67.38
2009
15.49
2010
75.43
2011
105.43
2012
112.6
2013
95.06
2014
120.89
2015
135.32
2016
211.17
2017
315.48







Year
EBITDA OR PBDIT
2007
169.99
2008
154.43
2009
165.62
2010
172.75
2011
234.46
2012
313.15
2013
283.63
2014
304.84
2015
356.79
2016
419.51
2017
560.43








Investment Rational:

1.     SFL current P/E is running below Industry P/E.

2.     Positive impact on company business due to suspecting GST implication from 01/07/2017.

3.     Strong YOY% increasing in Sale with Net Profit.

4.     Robust profit from export business.

5.     Will benefited due to fastest grow of domestic commercial vehicle industry on YOY basis.

6.     Strong leader in his business and products.

7.     Government focus in Road & Infra structure, Auto industry 2 wheeler will boost up.

8.     Suspecting strong tractor growth due to good monsoon.

9.     Company is investing working capital/ profit in Capex for business expansion


Recommendation:

v Stock CMP is 404 Rs. and stock is trading at P/E 27 & TTM EPS 15, due to fastest growing company and based on all above investment points, stock may touch 470 Rs. Short term and may touch 650 Rs. within a 3 years’ time horizon.


Please note:

v Note: The articles are not research reports but assimilation of information available on public domain and it should not be treated as a research report.

Registration status with SEBI
: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure:It is safe to assume that I might have the discussed companies in my portfolio and hence my point of view can be biased. Readers should consult registered consultants before making any investments.













































































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