15-10-2017 - SUNDRMFAST

SUNDARAM FASTENERS LTD – SUNDRMFAST – CMP : 510.55

Sundram Fasteners Limited is part of the TVS Group of companies. Founded in 1911 by T.V. Sundaram Iyengar, TVS has grown rapidly, expanding its portfolio to become India’s largest automotive component manufacturer. The group has, over the years, diversified into many businesses, with total sales exceeding USD 7 billion.

Sundram Fasteners Limited, started in 1966 & has grown into a global leader, manufacturing critical, high precision components for the automotive, infrastructure, windmill and aviation sectors. Varied range of products encompasses fasteners, powertrain components, sintered metal parts, iron powder, cold extruded parts, radiator caps and wind energy components.

An unwavering focus on delivering quality has won Sundram Fasteners Limited the trust of both OEM and aftermarket customers in highly competitive markets like India, China, Germany, USA, UK, Italy, France and Brazil.

Technically, the stock looks very strong after giving a clear breakout on Thursday, 12^th October, 2017. It is trying to sustain the breakout. Personally I might be buying this stock on every dip till 480 starting with a small quantity at CMP of course. It is also a pure “ Buy On Dips ” kind of stock. I feel that the stock may touch the targets of 560 & 600. I will be maintaining a strict & closing basis Stop Loss of 460. As per my BTS ( Breakout Trading System ) I feel that the stock should start moving up. Fundamentally, also the stock is performing very well as we can see from the basic facts & figures mentioned below :

The Revenue has grown to 841.74 crore from 831.19 crore. The Net Profit also, has gone up to 90.17 crore from 87.66 on QoQ basis. EPS also, has gone up slightly from 4.17 to 4.29. Operating Profit Margin grew to 17.82 % from 16.22 % & Net Profit Margin also went up slightly to 10.71 % from 10.55 % on QoQ basis.

The promoters are holding nearly 50 % of the total equities in the market. The company has a good and consistent profit growth of 23.08 % over 5 years. The company has been maintaining a healthy dividend payout of 26.55 %. So, overall personally I feel that the company is a good investment opportunity for a short period of time and I might go for buying, of course with the levels mentioned above for entry, exit & Stop Loss.