Buy Sundram Fasteners; target of Rs 1460 Sharekhan

Sharekhan's research report on Sundram Fasteners

Reported PAT at Rs 133 cr against an estimated Rs 133 cr on 30 bps beat in EBITDA margin estimates. Management guided for a better H2FY24 compared to H1FY24. Stock trades at P/E multiple of 26.7 and EV/EBITDA multiple of 17.3x its FY26E estimates.

Outlook

TWe maintain our Buy rating on Sundram Fasteners Ltd (SFL) with a revised PT of Rs 1460 on the expectation of revival in export revenue from H2FY24, expectation of new orders in the EV segment, successful execution of existing orders in EV and non-auto space and RM cost tailwind.