Moneycontrol
Last Updated : Aug 20, 2018 08:17 AM IST | Source: Moneycontrol.com

Buy Sundram Fasteners, target Rs 760: Anand Rathi

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.

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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.

We have a buy rating with target of Rs 760.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Aug 20, 2018 08:17 am
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