Sundram Fasteners powers up in Tamil Nadu with Rs 1,411 crore investment

Sundram Fasteners, a Global automotive supplier, is revving its presence in Tamil Nadu with a massive Rs 1,411 crore investment commitment. This strategic move, inked during the Tamil Nadu Global Investors Meet 2024, will span eight existing factories in the state, including Mahindra World City SEZ, aligning with both Industrial and EV policies. 

The planned investment, stretching till 2027-28, fuels Sundram’s capacity expansion for existing products and ventures into components for electric vehicles. This significant boost highlights Sundram Fasteners’ continued growth trajectory and underscores Tamil Nadu’s thriving investment climate, particularly in the blossoming EV sector. 

Financial Performance          

Sundram Fasteners Limited reported a strong robust quarter for FY24, with a net sales increase of 1.44% to Rs 1,421.82 crore, compared to Rs 1,401.65 crore in the same quarter last year. The operating profit also experienced a significant increase of 11.02%. The net profit for the quarter stood at Rs 133.05 crore, which was Rs 1,16.78 crore in the previous year’s same quarter. The company is expected to incur a capex of Rs.750 crores in fiscal 2024 and 2025 as the company plans to invest more in new product development, especially on the EV technology side. 

Business Overview      

Sundram Fasteners Limited has established a track record of leadership over 60 years. With a diversified product line, world-class facilities in 3 countries, and a motivated team of talented people, Sundaram Fasteners has become a supplier of choice to leading customers in the automotive segments worldwide. The product range consists of high-tensile fasteners, powder metal components, cold extruded parts, hot forged components, radiator caps, automotive pumps, gear shifters, gears and couplings, tappets, iron powder, powertrain components, and sub-assemblies. 

Stock Price Movement     

Today, the stock opened at Rs 1,284.20, with a high and low of Rs 1,284.20 and Rs 1,258.80, respectively. The stock closed trading at Rs 1,270.35, which increased by 0.65%. The stock has a 52-week high of Rs 1,334.15 and a 52-week low of Rs 951.50. The company has an ROCE of 19.3% and an ROE of 17.4%, with a market capitalisation of Rs 26,735 crore.    

The stock has shown impressive growth, and investors should keep a close eye on this stock.     

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.