Sundaram-Clayton Limited (SUNCLAY) AI Stock Analysis

Sundaram-Clayton Limited

(NSE:SUNCLAY)

Select Model

Rating:57.4Neutral

Price Target:INR 1,060.00▲(1.02% Upside)

Action:upgraded

Date:08/19/26

The overall score is held to the upper-50s by a recovering but still fragile financial profile, where improved profitability is offset by weak, negative cash flows and reliance on non-core factors. Technical signals point to a mildly weak medium-term trend without clear momentum in either direction, while a modest valuation provides some support but does not fully offset the operational and cash flow risks.

Positive Factors

Revenue reboundThe strong 2026 revenue rebound indicates renewed demand for the company’s automotive components and assemblies after a volatile period. If this recovery is sustained, greater scale can improve capacity utilization, support customer relationships, and provide a stronger base for restoring operating profitability.

Negative Factors

Weak cash generationPersistently weak cash conversion is a durable concern because accounting profit has not translated into internally generated funding. Negative operating and free cash flow can increase reliance on external funding or balance-sheet capacity, limiting flexibility for investment and shareholder returns.

Sundaram-Clayton Limited (SUNCLAY) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 22.58B
Dividend Yield: 0.43%
Average Volume (3M): 2,002
Price to Earnings (P/E): 9.0
Beta (1Y): 0.94
Revenue Growth: -3.88%
EPS Growth: ―
Country: India
Employees: 1,189
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

Sundaram-Clayton Limited Business Overview & Revenue Model

Company Description

Headquartered in Chennai, India, Sundaram-Clayton Limited was founded in 2017 and focuses on manufacturing and distributing non-ferrous components produced via gravity and pressure die casting techniques. This firm, previously identified as Sundaram...

Sundaram-Clayton Limited Financial Statement Overview

Summary

Net profit has recovered to a solid level relative to revenue and equity, but revenue remains volatile, core operations are still lossmaking, and cash generation is weak with negative operating and free cash flows, making the improvement fragile.

Income Statement

62Positive

Balance Sheet

68Positive

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	21.06B	20.26B	22.59B	14.15B	20.26B	16.57B
Gross Profit	4.44B	4.33B	10.76B	1.11B	8.24B	7.12B
EBITDA	6.33B	6.42B	3.16B	631.20M	36.21B	-1.43B
Net Income	2.51B	2.52B	-106.50M	-1.20B	-1.08B	252.20M
Balance Sheet
Total Assets	0	32.82B	30.99B	26.74B	24.12B	23.25B
Cash, Cash Equivalents and Short-Term Investments	541.20M	541.20M	752.60M	248.40M	1.04B	1.24B
Total Debt	0	12.98B	14.93B	14.26B	11.07B	9.90B
Total Liabilities	-12.95B	19.86B	21.28B	20.74B	16.38B	14.77B
Stockholders Equity	12.95B	12.95B	9.71B	6.00B	7.74B	5.57B
Cash Flow
Free Cash Flow	-889.40M	-3.85B	-5.89B	-2.28B	-613.50M	-6.68B
Operating Cash Flow	376.60M	-1.10B	-97.00M	455.00M	1.26B	1.05B
Investing Cash Flow	-1.23B	3.74B	-3.07B	-2.78B	-1.86B	-990.20M
Financing Cash Flow	778.50M	-2.46B	3.29B	1.51B	399.60M	965.60M

Sundaram-Clayton Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price1049.30

Price Trends

50DMA1209.76Negative

100DMA1265.56Negative

200DMA1298.64Negative

Market Momentum

MACD-46.47Positive

RSI33.69Neutral

STOCH43.12Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUNCLAY, the sentiment is Negative. The current price of 1049.30 is below the 20-day moving average (MA) of 1117.79, below the 50-day MA of 1209.76, and below the 200-day MA of 1298.64, indicating a bearish trend. The MACD of -46.47 indicates Positive momentum. The RSI at 33.69 is Neutral, neither overbought nor oversold. The STOCH value of 43.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SUNCLAY.

Sundaram-Clayton Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SUNCLAY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:ROLEXRINGS	85Outperform	INR 42.71B	3.94	―	―	1.82%	-12.22%
IN:HAPPYFORGE	75Outperform	INR 164.81B	50.35	―	0.23%	15.53%	21.46%
IN:SANSERA	74Outperform	INR 256.80B	73.43	―	0.10%	23.49%	52.08%
IN:MMFL	64Neutral	INR 23.18B	20.62	―	0.83%	9.58%	2.00%
IN:PTCIL	60Neutral	INR 380.01B	285.81	―	―	94.62%	103.35%
IN:SUNCLAY	57Neutral	INR 22.53B	9.00	―	0.43%	-3.88%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:SUNCLAY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SUNCLAY	Sundaram-Clayton Limited	1021.85	-501.30	-32.91%
IN:HAPPYFORGE	Happy Forging Limited	1745.80	739.09	73.42%
IN:MMFL	MM Forgings Limited	480.10	169.66	54.65%
IN:PTCIL	PTC Industries Ltd	23979.25	6588.80	37.89%
IN:ROLEXRINGS	Rolex Rings Limited	162.80	40.05	32.63%
IN:SANSERA	Sansera Engineering Limited	4114.25	2556.97	164.19%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026

Sundaram-Clayton Limited AI Stock Analysis