Sundaram-Clayton Limited (SUNCLAY) AI Stock Analysis

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Sundaram-Clayton Limited

(NSE:SUNCLAY)

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Rating:57.4Neutral

Price Target:INR 1,145.00▲(3.66% 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 27.1% revenue rebound shows renewed demand for the company’s automotive components and assemblies after a volatile period. If sustained, stronger volume can improve capacity utilization, reinforce customer relationships, and provide a broader base for restoring operating profitability over the next several quarters.

Negative Factors

Weak cash generationNegative operating cash flow indicates that reported earnings are not currently converting into cash, while persistently negative free cash flow points to substantial investment needs or working-capital pressure. Continued weak conversion can increase reliance on external funding and limit flexibility for growth or shareholder returns.

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

Market Cap: INR 24.24B
Dividend Yield: 0.40%
Average Volume (3M): 1,806
Price to Earnings (P/E): 9.2
Beta (1Y): 0.90
Revenue Growth: 8.76%
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	23.09B	20.26B	22.59B	14.15B	20.26B	16.57B
Gross Profit	4.98B	4.33B	10.76B	1.11B	8.24B	7.12B
EBITDA	6.47B	6.42B	3.16B	631.20M	36.21B	-1.43B
Net Income	2.64B	2.52B	-106.50M	-1.20B	-1.08B	252.20M
Balance Sheet
Total Assets	34.21B	32.82B	30.99B	26.74B	24.12B	23.25B
Cash, Cash Equivalents and Short-Term Investments	479.70M	541.20M	752.60M	248.40M	1.04B	1.24B
Total Debt	15.46B	12.98B	14.93B	14.26B	11.07B	9.90B
Total Liabilities	22.22B	19.86B	21.28B	20.74B	16.38B	14.77B
Stockholders Equity	11.99B	12.95B	9.71B	6.00B	7.74B	5.57B
Cash Flow
Free Cash Flow	0	-3.85B	-5.89B	-2.28B	-613.50M	-6.68B
Operating Cash Flow	0	-1.10B	-97.00M	455.00M	1.26B	1.05B
Investing Cash Flow	0	3.74B	-3.07B	-2.78B	-1.86B	-990.20M
Financing Cash Flow	0	-2.46B	3.29B	1.51B	399.60M	965.60M

Sundaram-Clayton Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price1104.60

Price Trends

50DMA1174.53Negative

100DMA1242.96Negative

200DMA1291.18Negative

Market Momentum

MACD-22.09Negative

RSI48.76Neutral

STOCH47.29Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUNCLAY, the sentiment is Positive. The current price of 1104.60 is above the 20-day moving average (MA) of 1080.14, below the 50-day MA of 1174.53, and below the 200-day MA of 1291.18, indicating a neutral trend. The MACD of -22.09 indicates Negative momentum. The RSI at 48.76 is Neutral, neither overbought nor oversold. The STOCH value of 47.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	78Outperform	INR 55.94B	5.04	―	―	15.12%	7.94%
IN:SANSERA	67Neutral	INR 293.85B	76.26	―	0.08%	29.61%	53.68%
IN:HAPPYFORGE	62Neutral	INR 184.41B	52.49	―	0.20%	22.81%	29.40%
IN:MMFL	62Neutral	INR 33.08B	23.91	―	0.58%	21.52%	44.72%
IN:PTCIL	62Neutral	INR 387.08B	290.82	―	―	94.13%	126.44%
IN:SUNCLAY	57Neutral	INR 24.35B	9.17	―	0.40%	8.76%	―
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	1104.60	-205.60	-15.69%
IN:HAPPYFORGE	Happy Forging Limited	1953.45	923.30	89.63%
IN:MMFL	MM Forgings Limited	685.15	378.82	123.67%
IN:PTCIL	PTC Industries Ltd	24425.65	7111.60	41.07%
IN:ROLEXRINGS	Rolex Rings Limited	213.25	103.75	94.75%
IN:SANSERA	Sansera Engineering Limited	4707.85	3175.45	207.22%

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