Shares of Sundram Fasteners jumped close to 8% in intraday trade on Tuesday as the auto-ancillary company continues its recent uptrend, gaining around 25% over the past month. The stock's sharp move comes after the company reported a strong start to FY27 and outlined a positive outlook for demand, exports and its non-auto businesses.
At its June quarter earnings call on August 6, management said consolidated turnover rose about 20% year-on-year to Rs 1,618 crore from Rs 1,367 crore. Growth was recorded across the company's key segments, including original equipment, aftermarket and exports.
Around 10.22 am, the stock is trading at Rs 1,215.85 apiece on NSE, gaining from its previous close at Rs 1,121.3.
Sundram Fasteners June Quarter Growth And Margin Outlook
Standalone profit increased to Rs 150 crore from Rs 138 crore in the year-ago quarter, marking nearly 10% growth. Management attributed the improvement partly to tighter control over fixed costs.
The company, however, continues to face higher input and indirect material costs, particularly amid the West Asia conflict. Sundram Fasteners said it has pass-through arrangements with domestic original equipment manufacturers, while it raises prices in the aftermarket to protect profitability.
Management said Ebitda margin stood at 16.1% and expects it to improve towards 16.5%, helped by recovery of higher indirect costs from customers.
Exports, New Projects Drive Growth Outlook
Exports are emerging as a key growth driver. Management highlighted stronger demand in North America, including a rebound in Class 8 trucks, while European business has also been improving. The company said its export share has moved back to around 30% of revenue.
Sundram Fasteners also has a pipeline of more than Rs 1,000 crore in new projects, with another similar-sized pipeline under discussion.
The company is also expanding its non-auto portfolio across aerospace, wind energy and industrial applications. Management expects aerospace revenue to cross Rs 100 crore this year, compared with around Rs 50 crore previously, with a longer-term target of Rs 500 crore in two to three years.
With strong June quarter growth, improving exports and an expanding non-auto opportunity, these factors are likely to remain key triggers for Sundram Fasteners shares as investors assess whether the recent rally can sustain.
Stock Movement
The stock delivered over 30% return over a year, and in the past month itself, it has gained more than 25%.
In the past week itself, the stock rallied close to 22%, which includes today's gains as well.
The stock is currently at a price-to-earnings multiple of 38.4 times, with a market cap of Rs 25,533.75 crore as of the end of the previous closing session.
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