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SUNDARAM CLAYTON LTD (SUNCLAY) Fair Value & Analysis

Industrials · IN · Market cap ₹30.1B

SC SUNDARAM CLAYTON LTD SUNCLAY · NSE
Price₹1,290
Fair Value₹1,659
Upside+28.6%
Quality30/100
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Expensive Growth
Solidly profitable · 12.3% net margin
Moderate debt · negative free cash flow
0.33% dividend yield
Trails peers (4/13)
Narrow moat 40/100
Evidence: Medium Range ₹1,388 – ₹2,431 Share as image

Fair value as of: Aug 13, 2026

From 12 valuation models · updated 4 days ago

Share price −6.5% over the past month.

Below-average quality, screening 29% undervalued on our models.

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What matters now

  • The price is below even our cautious bear case (₹1,388). The market is more pessimistic than our downside scenario.
  • Our model range runs from ₹1,388 (bear) to ₹2,431 (bull), base ₹1,659. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 30/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (3 years)

₹2,857 ₹1,130 Fair Value ₹1,659 Dec 2023 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

32‑month range ₹1,130 – ₹2,857 · fair‑value band ₹1,388 – ₹2,431 · the ₹1,290 price screens below the ₹1,659 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

SUNDARAM CLAYTON LTD (SUNCLAY) currently trades at ₹1,290, while our model-based Fair Value estimate is ₹1,659, implying the stock looks roughly 28.6% undervalued today. The Quality Score stands at 30/100 (below-average quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, SUNDARAM CLAYTON LTD generated revenue of ₹20.5B at a net margin of 12.3%. Revenue declined 10.5% year over year. It earns a return on equity of 22.3%. Net debt stands at ₹12.4B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹1,388 (bear case) to ₹2,431 (bull case); at ₹1,290, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 39% below its 52-week high and 16% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -59% fair-value upside, at 29%, SUNCLAY screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹769.59 ₹1,088 ₹5,605 76
Gordon GGM ₹21.66 ₹33.15 ₹45.54 70
Growth-Adj P/E ₹1,388 ₹1,983 ₹2,578 68
All 12 models by family
DCF Models
Owner Earnings ₹510.71 ₹870.33 ₹1,373 31
Earnings-Based
Graham-Dodd ₹778.45 ₹1,659 ₹2,105 54
PEG = 1.0 ₹253.23 ₹361.75 ₹470.28 46
Dividend Discount
Gordon GGM ₹21.66 ₹33.15 ₹45.54 70
DDM Multi-Stage ₹21.66 ₹31.07 ₹41.77 61
Multiples
P/E Multiple ₹1,889 ₹2,519 ₹3,148 63
P/S Multiple ₹826.92 ₹1,103 ₹1,378 58
P/B Multiple ₹1,460 ₹1,946 ₹2,433 55
EV/EBITDA ₹73.85 ₹217.91 ₹361.98 54
Asset-Based
NCAV (Graham) ₹293.79 ₹393.68 ₹587.59 50
Economic Profit
Residual Income ₹769.59 ₹1,088 ₹5,605 76
Growth Earnings
Growth-Adj P/E ₹1,388 ₹1,983 ₹2,578 68

Widest divergence: Growth Earnings (₹1,983) versus Dividend Discount (₹31.07). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹20.5B
Revenue growth (YoY) -10.5%
Net margin 12.3%
Return on equity 22.3%
Free cash flow −₹3.8B FY2026
P/E ratio 11.3
More key figures
Operating margin -2.2%
EPS (TTM) ₹114.52
Dividend yield 0.3%
EPS growth (YoY) +184%
Net debt ₹12.4B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 30/100

Of which business quality 31 · Market factors (momentum, volatility) 37

Profitability 49
Margins and returns on capital today
Quality Growth 20
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 32
Balance sheet, leverage, solvency risk
Investment 29
Disciplined investing over empire-building
Low Volatility 67
Calm price path (market factor)
Momentum 32
Price trend over the last 3–12 months (market factor)
52W Momentum 13
Distance to the 52-week high (market factor)
Net Issuance 59
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Sundaram-Clayton Limited manufactures and sells non-ferrous gravity and pressure die castings in India. The company offers flywheel, gear, and clutch housing; and filter head, air connector, lube oil cooler cover assembly, filtration module casting, turbo charger, compressor cover assembly, charge air pipe, and intake manifold products, as well as cover …

Full company description

Sundaram-Clayton Limited manufactures and sells non-ferrous gravity and pressure die castings in India. The company offers flywheel, gear, and clutch housing; and filter head, air connector, lube oil cooler cover assembly, filtration module casting, turbo charger, compressor cover assembly, charge air pipe, and intake manifold products, as well as cover coolant ducts for the truck segment. It also provides cylinder head, case transaxle assembly, oil pan, chain case, cylinder head cover, adaptor oil filter, fuel pump housing, fork gear shift, starter housing, and A/C compressor housing products for passenger cars. In addition, the company offers crank case, cylinder head and barrel, and wheel hub products for powered two wheelers and brake equipment valve bodies. Sundaram-Clayton Limited was formerly known as Sundaram - Clayton DCD Limited and changed its name to Sundaram-Clayton Limited in August 2023. The company was founded in 1962 and is based in Chennai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

SUNDARAM CLAYTON LTD reported revenue of ₹20.3B in FY2026 versus ₹16.6B in FY2022, a compound +5.1%/yr. Reported net income was ₹2.5B in FY2026, compounding +77.9%/yr from FY2022.

Growth Quality 59/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹20.3B
Latest YoY
−10.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.6%
Revenue +5.1%/yr
FY22 ₹16.6B
FY23 ₹20.3B
FY24 ₹14.2B
FY25 ₹22.6B
FY26 ₹20.3B
Net income +77.9%/yr
FY22 ₹252M
FY23 −₹1.1B
FY24 −₹1.2B
FY25 −₹107M
FY26 ₹2.5B

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Cite: Fair Value Calculator (2026). "SUNDARAM CLAYTON LTD Fair Value". https://www.fairvalue-calculator.com/stock/SUNCLAY

Peer Group

Metal Fabrication · 247 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 30 · Bottom 25%
Fair Value upside +29% · Top 25%
Return on equity (TTM) 22% · Top 25%
Return on assets -2% · Bottom 25%
Net margin (TTM) 12% · Top 25%
Operating margin (TTM) -2% · Bottom 25%
Revenue growth -11% · Bottom 25%
Dividend yield (TTM) 0.3% · Bottom 25%
Debt / equity 0.65× · Higher than 75% of peers

Valuation Multiples vs Metal Fabrication median · lower = cheaper

P/E (TTM) 11.3× · Cheaper than 75% of peers
P/B 2.32× · Pricier than median
P/S (TTM) 1.47× · Pricier than median
EV/EBITDA 29.8× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 71 · sector 0
FUTURE 0 · sector 34
PAST 89 · sector 19
HEALTH 67 · sector 95
DIVIDEND 7 · sector 28

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Metal Fabrication stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Frequently asked questions

Is SUNDARAM CLAYTON LTD (SUNCLAY) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹1,659 versus a price of ₹1,290, about +29% (undervalued).
What is the fair value of SUNCLAY?
Our model-based fair value for SUNDARAM CLAYTON LTD is ₹1,659 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹1,290.
What is the quality score of SUNCLAY?
SUNDARAM CLAYTON LTD has a Quality Score of 30/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of SUNDARAM CLAYTON LTD (SUNCLAY)?
SUNDARAM CLAYTON LTD reported trailing-twelve-month revenue of about ₹20.5B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of SUNCLAY?
The net profit margin of SUNDARAM CLAYTON LTD is about 12.3%, meaning it keeps roughly 12.3% of revenue as net income. Based on the latest reported figures.
Does SUNDARAM CLAYTON LTD pay a dividend?
SUNDARAM CLAYTON LTD currently shows a dividend yield of about 0.33% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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