Sundram Fasteners Limited, established in 1966, is a prominent member of the USD 8.5 billion TVS Group and stands as one of India's leading automotive component manufacturers. The company has evolved into a global leader, specializing in manufacturing critical, high-precision components for the automotive, infrastructure, windmill, and aviation sectors.
Sundram Fasteners operates across diverse product segments including high tensile fasteners for wind energy, automotive, engine, and aerospace applications; cold extruded parts such as gear blanks, transmission shafts, and cams; hot forged parts including bevel gears and bearing hub rings; powertrain components like turbine and output shafts; pump assemblies for water and oil; radiator caps; and powder metallurgy products including rotors, gears, and synchronizer hubs.
The company serves both OEM and aftermarket customers across highly competitive global markets including India, China, Germany, USA, UK, Italy, France, and Brazil. Sundram Fasteners holds the distinction of being the principal supplier of radiator caps to General Motors, USA, and has won the prestigious "Supplier of the Year" award from GM for five consecutive years, while its automotive pumps division serves as the principal supplier of rocker-level assemblies to Cummins, USA.
As of July 2025, Sundram Fasteners maintains a market capitalization of Rs 21,974 crore. For the financial year ended March 2025, the company reported a net profit of Rs 539.10 crore, representing a 3.34% increase from the previous year, with total sales rising 5.10% to Rs 5,955.42 crore.
The company's quarterly performance for Q4 FY25 showed some challenges, with net profit declining 6.83% to Rs 124.43 crore compared to Rs 133.55 crore in the same quarter of the previous year, though sales grew 4.37% to Rs 1,530.59 crore. The company declared a dividend of Rs 4.20 per share for the quarter ending March 2025, translating to a dividend yield of 1.09%.
- Revenue (FY25): Rs 5,955 crore
- Net Profit (FY25): Rs 539 crore
- Market Cap: Rs 21,974 crore (as of July 2025)
- Dividend Yield: 1.09%
- P/E Ratio: 35.80 times (as of May 2025)
- P/B Ratio: 5.06 times (as of May 2025)
Sundram Fasteners has entered into a Memorandum of Understanding with the Government of Tamil Nadu for an investment of Rs 14.11 billion, with the company eligible to receive incentives worth Rs 2.12 billion in equal installments over 10 years under industrial and electric vehicle policies.
The company demonstrated resilience with total revenues of Rs 3,869 crores for the nine-month period, reflecting 6% year-on-year growth despite domestic market challenges. Strategic focus on product diversification, particularly in the electric vehicle sector, positions the company well for future growth. Export revenues surged by 15%, supported by a diversified customer base and new orders, while operational efficiencies helped mitigate rising costs.
Promoter holding in Sundram Fasteners has decreased to 46.95% as of March 2025 from 48.51% as of June 2024. The company's promoter is TVS Sundram Fasteners Private Limited, which owns 46.79% of the total equity, with Suresh Krishna serving as chairman and Arathi Krishna as managing director. Notably, there is no promoter pledging in the company.
The stock has shown mixed performance with a 4% increase over the last month and 15.04% growth over three months, though it declined 26.46% over the past twelve months. Analysts maintain a positive outlook with 100% recommending a 'BUY' rating and an average target price of Rs 1,231.75, indicating an 18% upside potential.
The company recently received a reaffirmation of its short-term debt rating as CRISIL A1+ in July 2025, reflecting its strong creditworthiness and financial stability. With its established market position, diversified product portfolio, and strategic investments in emerging sectors like electric vehicles and renewable energy, Sundram Fasteners continues to be a significant player in India's automotive components industry.
