Sundaram Clayton

AI Analysis

Demergers often unlock value for shareholders, and the auto sector is poised for recovery with easing commodity prices.

Bullish on Sundaram Clayton; look for entry points considering the demerger and sector recovery.

•Sundaram Clayton is demerging its non-automotive business.
•Shareholders will receive 1 share of Sundaram Investments Limited (SIL) for every 2 Sundaram Clayton shares.
•SIL share is valued at 48, implying a 24 Rs gain per Sundaram Clayton share.
•Stock is available at a PE of 10 with 87% shares held by promoters and mutual funds.
•At CMP 160, it offers a dividend yield of around 5%.

SUNCLAYLTDSundaram Clayton Ltd

Positive

Demerger expected to unlock value, attractive valuation, dividend yield, and auto sector recovery prospects.

Sectors:auto

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