Sundaram-Clayton Stock Price Analysis and Quick Research Report. Is Sundaram-Clayton an attractive stock to invest in?

The Indian Auto Industry comes in the top 5 largest auto industries of the world. India is also a prominent auto exporter and has strong export growth expectations for the near future. The support from the government is providing the auto companies with a boost needed in their development. But will it sustain?
We can look into more details and dig a little deeper into the analysis of the stock of this sector. Let’s look at how Sundaram-Clayton is performing and if it is the right time to buy the stock of Sundaram-Clayton with detailed analysis.

• The mainstream of revenue for Auto Sector is their sales, Sundaram-Clayton has reported poor sales growth of 0 % and in the latest quarter sales was Rs 549.04 Cr. To judge whether the company’s inventory is being sold or not and the sales picture is true, inventory turnover ratio plays a major role, which is 4.181 times for Sundaram-Clayton . It is managing its inventory poorly .
   
• Sundaram-Clayton reported Profit growth of 0 % over the year, where the latest year profit is Rs 64.52 Cr compared to the previous year of Rs 273.11 Cr. The new permits by governments and increasing demand will lead to an increase in profits in the coming year.
   
• The operating profit of Sundaram-Clayton in the latest quarter is Rs 56.61 Cr. It helps in measuring the company’s operating performance which is used to make financing decisions.
   
• Sundaram-Clayton has a poor ROE of 8.0892 %. The ROE is an important financial parameter because Auto companies work with high equity investments. Also, they have to take huge debt to incur the research and manufacturing work so their Debt to Equity ratio should be evaluated. Sundaram-Clayton has a low Debt to Equity ratio of 1.2234.
   
• Sundaram-Clayton pays a dividend of 5.15 Rs per share. It tells us that a company likes to share profits with its shareholders. The dividend yield is low at 0.3 %.
   
• The share of promoter in Sundaram-Clayton is high at 67.45 %, where the pledging is 0 %.
   
• What the market is willing to pay for the company for its earnings can be determined by PE multiple. Current PE of Sundaram-Clayton is 53.9904483864797 compared to the 5 year average PE of 0 .
   
• Share Price: - The current share price of Sundaram-Clayton is Rs 1721.75. One can use valuation calculators of ticker to know if Sundaram-Clayton share price is undervalued or overvalued.