1. At a Glance – The Calm Engineer Who Never Shouts
Sundram Fasteners Ltd is that IIT topper of the auto ancillaries class who never raises their voice, never trends on Twitter, but quietly tops the rank list every year.
As of Q3 FY26, the company sits at a market cap of ~₹18,838 Cr, trading near ₹896, down ~9% over one year — because markets sometimes punish boredom more than bad behaviour. Revenue for the quarter came in at ₹1,541 Cr, with PAT of ₹130.8 Cr, up ~7.6% YoY. Not explosive, not disappointing — just… Sundram.
Balance sheet? Clean.
Debt-to-equity? 0.18 — basically debt on a diet.
ROCE? ~17% — not flashy, but consistent.
Dividend yield? 0.8% — enough to buy filter coffee, not Starbucks.
And yet, the stock trades at 33× P/E, above industry average. Why? Because markets believe that when EVs finally take over, Sundram Fasteners will already be inside the motor, holding things together — literally.
So the big question:
Is this a premium compounder being temporarily ignored… or a precision-engineered stock priced like a sports car but accelerating like a sedan?
2. Introduction – The TVS Family’s Silent Assassin
Sundram Fasteners is part of the legendary TVS Group, which means three things immediately:
- No drama
- No leverage-fuelled heroics
- Zero tolerance for nonsense
This company doesn’t do “turnarounds” because it never collapses in the first place. It doesn’t chase headlines. It doesn’t announce moonshot acquisitions. Instead, it manufactures high-precision, high-stress, mission-critical components that OEMs simply cannot afford to mess up.
If your fastener fails in a windmill, the turbine doesn’t tweet — it falls.
From ICE engines to EV platforms, from tractors to aerospace, Sundram Fasteners has built a portfolio where failure is not an option. That’s also why customer lists read like a global OEM dinner invite — GM, Cummins, John Deere, Daimler Chrysler, New Holland, and more.
Growth here is not a sprint. It’s a treadmill — steady, exhausting, and brutally disciplined.
But here’s the catch:
In a market addicted to instant dopamine (read: 40% YoY
growth), can Sundram’s slow-and-steady DNA still command a valuation premium?
3. Business Model – WTF Do They Even Do?
Let’s simplify this.
Sundram Fasteners makes the nuts, bolts, shafts, gears, pumps, hubs, and powdered metal parts that keep machines from shaking themselves into early retirement.
Their business buckets:
- High tensile fasteners – for automotive, wind energy, aerospace
- Cold extruded & hot forged parts – gear blanks, shafts, bearing hubs
- Powertrain components – turbine shafts, sun gears, clutch hubs
- Pumps & assemblies – water, oil, fuel feed pumps
- Powder metallurgy & iron powder – structural parts, rotors, gears
This is not a “single product risk” company. It’s a manufacturing buffet, with deep process know-how, decades of metallurgical learning, and insane tolerance standards.
Add to that:
- 13 plants in India
- Facilities in UK & China
- Multi-segment exposure: PV, CV, tractors, wind, aerospace, defence
Roughly 65–70% revenue still comes from PV & CV OEMs, with tractors, 2Ws, wind, and now EVs filling the rest.
If this company were a person, it would be that mechanical engineer uncle who fixes your car faster than the authorised service centre — without opening YouTube.
4. Financials Overview – The Numbers That Don’t Lie (But Don’t Dance Either)
Latest Quarter vs History (₹ Cr):
| Metric | Latest Q3 FY26 | Q3 FY25 (YoY) | Q2 FY26 (QoQ) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,541 | 1,431 | 1,521 | ~7.7% | ~1.3% |
| EBITDA | 240 | 228 | 252 | ~5.3% | -4.8% |
| PAT | 131 | 122 | 153 | ~7.6% | -14.4% |
| EPS (₹) | 6.21 | 5.92 | 7.18 | ~4.9% | -13.5% |
Annualised EPS (Q3 rule):
Average of Q1, Q2,
