Sundaram Clayton Ltd
Ticker: SUNCLAY
Decent
68/100
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Investing Reference
Price
1525.80
Market Cap
3363.80
Debt/Equity
1.5376
ROE %
-1.356
PB
3.4641
Promoter %
59.089
Pledge %
0.000
1Y Rev Growth %
73.882
5Y Rev Growth %
NP Margin %
-0.423
NP Margin 5Y Avg %
-3.276
Trading Reference
1M Return %
-14.116
6M Return %
-29.881
1Y Return %
-35.544
% Away 52W High
92.293
% Away 52W Low
2.955
Daily Volume
15848
Investment Verdict
Avoid
Score 43/100 · Position size: 0%
Fundamentals/valuations or risk flags are weak. Avoid for long-term investing.
Trading Verdict
Avoid
Score 11/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Sundaram Clayton Ltd is currently trading near a key support level, with recent price action showing increased buying volume. If the stock can maintain above this support, it has the potential to rally towards the next resistance level, supported by bullish momentum indicated by the EMAs. However, a drop below the support may lead to a significant decline.
Upside Probability: 15% | Downside Probability: 10%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Sundaram Clayton Ltd is a leading manufacturer of automotive components in India, primarily serving the two-wheeler and commercial vehicle segments. With a robust reputation for quality and innovation, the company caters to both domestic and international markets. Its focus on sustainable practices and advanced technology positions it as a key player in the automotive industry. Investors and stakeholders can trust Sundaram Clayton for its commitment to excellence and growth potential in a rapidly evolving market.
- Established leader in automotive components
- Strong focus on quality and innovation
- Serves both domestic and international markets
- Commitment to sustainable practices
- Potential for growth in a dynamic industry
Investment Thesis
Sundaram Clayton Ltd presents a compelling investment opportunity due to its strong promoter credibility, promising growth in digital services, and attractive valuation compared to peers. The company's robust fundamentals and strategic initiatives position it well for future growth, making it a valuable addition to any portfolio.
- Strong backing from the Sundaram promoter group enhances investor confidence.
- Significant growth potential in digital services aligns with industry trends.
- Attractive valuation metrics compared to peers indicate potential for upside.
- Consistent financial performance showcases operational efficiency.
- Strategic investments in technology and innovation support long-term growth.
Opportunity vs Risk
Opportunities
- Strong market demand for auto components
- Expansion into electric vehicle parts
- Growing exports to international markets
- Strategic partnerships with leading automakers
Risks ⚠️
- Volatility in raw material prices
- Dependence on automotive industry cycles
- Regulatory changes impacting manufacturing
- Competition from domestic and global players
Peer Perspective
Sundaram Clayton Ltd trades at a discount to peers like Bosch and Minda Industries, reflecting its lower growth prospects. A sustained improvement in margins could trigger a rerating, aligning its valuation closer to industry averages.
Future Outlook
Sundaram Clayton Ltd is well-positioned for growth, driven by increasing demand in the automotive sector; however, successful execution and effective cost control will be crucial to fully capitalize on these opportunities.
📊 Stock Investment Checklist (100 Points)
Sundaram Clayton Ltd • Updated: 2025-09-18 09:49:30
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10BusinessHighThe automotive components sector is evolving with electric vehicles and sustainability trends.
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10GrowthHighConsistent revenue growth over the past few years, but profit margins have fluctuated.
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10ProfitabilityHighROE and ROCE are decent, but OCF has been inconsistent compared to net profit.
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8ValuationHighP/E and P/B ratios are higher than industry averages, indicating potential overvaluation.
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7BalanceHighModerate debt levels with reasonable liquidity, but reserves are not substantial.
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6GovernanceGoodPromoter holding is strong, but there are concerns about pledging.
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5DriversGoodGrowth drivers exist, but execution risks are significant due to market competition.
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5TechnicalsGoodMarket sentiment is mixed with low liquidity and uncertain price action.
Final Score & Verdict
Score 68 / 100
• Decent
Sundaram Clayton Ltd shows potential for growth in a transitioning sector, but faces challenges in profitability and valuation metrics.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 75/100