Please refer to important disclosures at the end of this report
Sundaram Clayton Limited is a holding company engaged in the manufacturing
and distribution of aluminium alloy cast articles, including parts and
components. The Company supplies aluminium castings either as cast or in
machined condition for commercial vehicles, passenger cars and two wheele
segments of the automotive industry. In view of stringent emission norms and fuel
economy regulations, the thrust for light-weighting is bound to increase leading
to higher content of aluminum in all vehicle types. This factor will provide fo
increased growth opportunities, since the Company is already a preferred source
for aluminium castings to major customers in India and abroad. The Compan
has developed magnesium die castings and has completed tests and trials. The
responses from prospective customers are encouraging. The Company's suppl
contracts provide for periodic price adjustments indexed to the international
prices of aluminum and this should offer some protection against volatility o
commodity prices. The company has reported a consistent return on equity (RoE)
of 15%+ for the last 5 years and currently has a ROE of 28.8% of FY16 earnings
which is positive. The Company has been maintaining a steady PAT performance
in past 5 years and a healthy dividend payout of 34.83% and dividend yield o
1.5%. Hence Buy.
CMP `2,650
Stock Info
Beta 0.6
Bloomberg Code
Shareholding Pattern (%)
Promoters 75.0
MF / Banks / Indian Fls 15.1
FII / NRIs / OCBs 0.2
Indian Public / Others
Abs. (%) 3m 1yr 3yr
Sensex 7.2 9.4 43.4
Sundaram Clayton 30.3 46.5 839.7
Reuters Code SUND.BO
BSE Sensex 28,294
Nifty 8,723
Face Value (`)
Auto Ancillary
Market Cap (` cr) 5,362
52 Week High / Low 2668/1755
Avg. Daily Volume 1,113
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Sundaram Clayton
Others | Auto Ancillar
September 27, 2016
Sundaram Clayton | Auto Ancillar
September 27, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement Sundaram Clayton
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)