Sundram Fasteners Ltd Q1 FY26 – EV Order Book ₹4,000 Cr, 40x P/E, 17% ROCE. Fasteners Tight, Valuations Tighter?
1. At a Glance
A 60-year-old company from the legendary TVS stable that still sells nuts, bolts, shafts, and caps – but does it with the swagger of a tech startup quoting 40x P/E. Sundram Fasteners is less about “screws and bolts” and more about “screwing valuations.”
2. Introduction
Let’s be honest – nuts and bolts don’t sound sexy. But Sundram has managed to turn basic metal parts into a ₹21,000 Cr market cap story. How? Simple – supply to every auto giant from GM to John Deere to Daimler, sprinkle global facilities in UK and China, and then add some EV spice with a $250 Mn contract.
And voilà – you go from “TVS Group’s hardware cousin” to “investor darling with PEG ratio of 6.79.”
But the market isn’t in love lately. Stock is down 27% in 1 year, even though fundamentals are intact. Why? Because Mr. Market realised that while Sundram’s bolts are high tensile, its growth has been low tensile.
Question: Would you pay iPhone prices for a Nokia if it came with EV stickers?
3. Business Model – WTF Do They Even Do?
Think of Sundram as the Kirana store of precision engineering. Whatever the customer wants – auto fasteners, powertrain shafts, radiator caps, pump assemblies, even iron powder – Sundram has it in stock.
Auto Dependence: 65–70% of sales come from CV and PV OEMs. Tractors, two-wheelers, and wind energy take the rest.
Geography: 66% India, 22% US, 12% UK/China/RoW.
Facilities: 13 plants in India, plus 2 abroad.
Clients: GM, John Deere, Daimler, Cummins – basically the Avengers of auto OEMs.
In short, they’re the invisible hand behind every engine roar. Not a household brand, but without them, your car engine would fall apart faster than a Bollywood sequel.
4. Financials Overview
Source table
Metric
Latest Qtr (Jun ’25)
YoY Qtr (Jun ’24)
Prev Qtr (Mar ’25)
YoY %
QoQ %
Revenue
₹1,533 Cr
₹1,498 Cr
₹1,531 Cr
+2.4%
+0.1%
EBITDA
₹247 Cr
₹247 Cr
₹225 Cr
0.0%
+9.8%
PAT
₹148 Cr
₹143 Cr
₹124 Cr
+3.5%
+19.4%
EPS (₹)
7.06
6.75
5.92
+4.6%
+19.3%
Commentary: Revenue is flat, EBITDA margins stuck at 16%, PAT growing steadily. This is not a masala movie, it’s an Excel sheet drama.
5. Valuation Discussion – Fair Value Range
Method 1: P/E
EPS (TTM) ~ ₹26
Industry P/E ~29
Fair Value Range (P/E): ₹754 – ₹1,131
Method 2: EV/EBITDA
EV = ₹22,601 Cr
EBITDA (TTM) = ~₹988 Cr
EV/EBITDA = 22.9x
Peers 15–20x → Fair Value Range (EV/EBITDA): ₹15,000 – ₹19,500 Cr
