Sharekhan’s research report on Sundram Fasteners
SFL displayed strong performance in Q1FY2022, beating street expectations, led by robust operational performance, despite tough environment. Export and non-automotive segments remain the top focus areas for the management to de-risk business from cyclicality. We expect SFLâ€™s earnings CAGR to improve by 32.3% during FY2021E-FY2023E, driven by a 26% revenue CAGR during FY2021E-FY2023E and a 20 bps improvement in EBITDA margin to 18.4% in FY2023E from 18.2% in FY2021, with ROCE progressing to 22.6% in FY2023E. The stock trades at P/E multiple of 25x and EV/EBITDA multiple of 15.1x its FY2023E estimates.
We continue to retain our Buy rating on Sundram Fasteners Limited (SFL) with an unchanged PT of Rs. 994, led by the companyâ€™s strong performance outpacing the automobile industryâ€™s growth through diversifying client and product portfolios, benefitting from its established client relationships, and prudent capital allocation.
Top Growth Stocks To Invest In 2023: DCT Industrial Trust Inc(DCT)
DCT Industrial Trust Inc. operates as a publicly owned real estate investment trust. The firm provides its services to companies. Through its fund, it engages in the ownership, operation, and development of real estate properties. The firm specializes in the ownership, acquisition, development, and management of institutional capital management program. It invests in the real estate markets of United States and Mexico. The firm is also invests in selected international markets. It primarily invests in commercial real estate properties, including generic distribution warehouses and light industrial properties. The firm was formerly known as Dividend Capital Trust Inc. DCT Industrial Trust was founded in 2002 and is based in Denver, Colorado with additional offices in Atlanta, Georgia and Dallas, Texas.