Sundaram Fasteners share price at all-time high; Should you sell or hold?

According to Rajesh Bhosle – Equity Technical & Derivatives Analyst, Angel One, the stock is already in an uptrend which is playing in a persistent higher top higher bottom structure, after the recent consolidation, prices resumed positive traction and hopefully the journey north continues with the next one. on resistance 1,140 more 1,040 as immediate support.

On May 4, the company reported 18.61% year-on-year growth in its consolidated net profit for the quarter ended March. net profit increased to 126.36 crore from 106.53 crore in Q4FY22.

Sharekhan in its research by BNP Paribas, a domestic brokerage, said that auto parts makers indicate for higher performance in H2FY24 as compared to H1FY24 and continue to maintain their capital expenditure (capex) forecast. 1,000 crore over FY23-25E.

“Since we had stopped capital expenditure, the last three years- FY20-FY22- were subdued for expansion. However, we resumed it in FY23 and spent roughly 300 crores during the most recent financial year. Now we are planning to spend the rest According to R Dilip Kumar, chief financial officer of Sundaram Fasteners, who made the statement during the FY2023 Q4 results call, they plan to generate Rs 700 crore over the next two years.

The brokerage house claimed that the company’s operating performance in the fourth quarter of FY23 was in line with expectations due to a sequential increase in exports.

maintains ‘Buy’ rating on Sundaram Fasteners with a target price of Rs. 1,244 on expectation of 32.0% compound annual growth rate (CAGR) over the next two years, the brokerage said in its report, given its focus on increasing penetration in the EV segment and growing non-auto as well as export revenue.

According to Trendline data, the share price gained 49.8% and outperformed its sector by 15.1% over the past year.