Sundaram Fasteners is significantly adding capacity and has incurred Rs 200–300 crore Capex in FY18. The company has high ROE of 25.40 percent, says a report by Anand Rathi.
Anand Rathi Share and Stock Brokers
Sundram Fasteners is the largest manufacturer and exporter of high tensile fasteners. It manufactures automotive components such as high tensile fasteners, radiator caps, powder metal parts, pumps and engine components. The company caters to OEM in 2 wheelers, 4 wheelers, farm equipment and commercial vehicle segment.
It is making efforts to improve product mix with focus on high-value products and increased contribution of exports. As a part of its backward integration strategy, the company added a second 10,000 tonne foundry plant to cater high demand for machine castings in China.
Sundaram Fasteners is significantly adding capacity and has incurred Rs 200–300 crore Capex in FY18. Its management expects to invest Rs 350 crore in FY19. The company has high ROE of 25.40 percent.
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