Sundram Fasteners stock hits record high with 5% gain on robust Q4 earnings

Sundram Fasteners Ltd

Shares of Sundram Fasteners rallied nearly 5 percent to hit an all-time high of Rs 1,090 in Friday's intraday trade after the company put up a robust Q4 performance.

At 11:26am, the stock was up 2.31 percent at Rs 1,068 on the NSE on Friday.

The auto component major posted a 19 percent rise in consolidated net profit at Rs 127.47 crore for the fourth quarter ended March 2023 as against Rs 107.43 crore last year. The company's consolidated revenue from operations climbed 8.1 percent to Rs 1,447.95 crore from Rs 1,339.84 crore in the same period.

For the entire 2022-23, the company's net profit was seen up at Rs 500.35 crore, as against a net profit of Rs 461.83 crore in FY22. Total income increased 15.5 percent to Rs 5,662.75 crore.

In the quarter under review, the TVS Group company had won its biggest contract in the EV segment worth $250 million from a leading global automobile manufacturer for the supply of sub-assemblies for its electric vehicle (EV) unit.

The board of directors of the company have also declared a second interim dividend of Rs 3.06 per share (306 percent). The total dividend, including special dividend, for the financial year 2022-2023 would amount to Rs 8.63 per share (863 percent).

Stock Performance

Sundram Fasteners has given a return of 84.33 percent over the last five years. Thus, outperforming the benchmark Nifty50 index which has given a return of 67.70 percent during the same duration. Since the beginning of 2023 the benchmark Nifty50 has remained flat and has given a return of 0.1 percent and Sundram Fasterners has given a return of 10.61 percent.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.