Sundaram Finance Ltd logo

Sundaram Finance Ltd

SUNDARMFIN NSE

Sundaram Finance is a registered deposit taking NBFC established in 1954. The Co. is engaged in retail finance across multiple domains like Vehicle finance, Home Finance, Mutual Funds, General insurance and Financial service distribution [1]

AI Verdict: HOLD Confidence: 6%

Sundaram Finance is a high-quality NBFC with consistent 15% ROE and steady profit compounding at 14% TTM, but the stock trades at 3.38x book value and has declined 7% over the past year, suggesting limited near-term upside at current valuations. With 60% analyst buy ratings and no sell ratings, the consensus leans positive but the premium valuation warrants patience.

Key Fundamentals

MidcapNBFCFinancial Services
Market Cap
₹51,147 Cr
Volatility
Moderate
P/E Ratio
24.97
EBITDA
₹7,607 Cr
Return on Equity
12.84%
Debt to Equity
4.67
Book Value
₹1,340.6
EPS
₹140.47
52W High
₹5,642
52W Low
₹4,000

Technical Indicators

Key Insights

Strengths

1
  • Company has been maintaining a healthy dividend payout of 18.8%

Weaknesses

2
  • Stock is trading at 3.43 times its book value
  • Company has low interest coverage ratio.

Growth Rate

Revenue Growth
14.55% ↗
Net Income Growth
9.51% ↗
Cash Flow Change
-5.86% ↘
ROE
7.01% ↗
ROCE
10.93% ↗
EBITDA Margin (Avg.)
-4.32% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 1d ago
HOLD
Risk medium

Sundaram Finance is a high-quality NBFC with consistent 15% ROE and steady profit compounding at 14% TTM, but the stock trades at 3.38x book value and has declined 7% over the past year, suggesting limited near-term upside at current valuations. With 60% analyst buy ratings and no sell ratings, the consensus leans positive but the premium valuation warrants patience.

Bull Case 8
  • Consistent ROE of 15% maintained across 1-year, 3-year, 5-year, and 10-year periods, demonstrating exceptional earnings stability rare among NBFCs
  • Compounded sales growth of 21% over 3 years indicates strong business momentum and market share gains in vehicle financing
  • 60% of analysts rate the stock a Buy with zero Sell ratings out of 10 total coverage analysts, reflecting institutional confidence
  • Compounded profit growth of 17% over 3 years outpacing the 10-year CAGR of 14%, showing acceleration in earnings trajectory
  • 10-year stock CAGR of 13% demonstrates long-term wealth creation track record for patient investors
  • Healthy dividend payout ratio of 18.8% with 0.88% yield provides income cushion during market corrections
  • TTM revenue growth of 15% remains robust, suggesting continued loan book expansion and NIM stability
  • Market cap of Rs 50,619 crore provides adequate liquidity and index inclusion potential for institutional flows
Bear Case 8
  • Stock is trading at 3.38x price-to-book value, a significant premium that limits margin of safety for new investors
  • Negative 1-year stock return of -7% indicates near-term price weakness and possible derating from peak valuations
  • Low interest coverage ratio flagged as a concern, suggesting potential earnings vulnerability if borrowing costs rise further
  • PE ratio of 24.5x is elevated for an NBFC, pricing in growth that must be sustained to justify current levels
  • Dividend yield of only 0.88% is below fixed deposit rates, offering minimal income support at current price
  • 5-year stock CAGR of 11% underperforms the 5-year profit CAGR of 13%, suggesting valuation multiple compression over this period
  • 10-year sales CAGR of only 7% reveals that the recent 21% three-year growth may not be sustainable long-term
  • Debt-to-equity data unavailable, creating uncertainty around leverage levels in a rising rate environment for an NBFC

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Positives 2
  • ₹500 cr NCD fundraise approved May 26

    Board approved raising ₹500 crore through Subordinated Non-Convertible Debentures on private placement basis in FY 2026-27, strengthening the capital base.

  • ₹42 cr institutional block trade Jun 10

    Block trade of ~98,221 shares at ₹4,275.60 per share on NSE totalling ₹42 crore, indicating strong institutional interest in the counter.

Neutral 3
  • CFO meets wealth advisors Jun 15

    CFO discussed FY26 performance with ASK Wealth Advisors on Jun 15 and Phillips Capital on May 28. No UPSI shared in either interaction.

  • MD investor meeting Jun 12 Jun 8

    MD Rajiv C. Lochan attended institutional investors' meeting in Chennai on June 12, hosted by Avendus Spark Institutional Equities.

  • ESOP exercises by employees Jun 8

    534 options exercised on Jun 8 and 550 options on May 29 under SFESOS-2008 scheme, with shares transferred from trust to demat accounts.

TL;DR: Sundaram Finance is seeing steady institutional engagement through block deals, investor meetings, and active management interactions with brokerages. The ₹500 crore NCD approval signals proactive capital planning for FY27 growth. No material headwinds are visible in recent news flow. The trend is stable with a slight positive tilt driven by capital-raising activity and institutional interest.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Revenue
1,484
1,582
1,708
1,821
2,156
1,952
2,085
2,190
2,259
2,349
2,386
2,514
2,560
Expenses
300
382
375
351
524
402
436
462
368
559
515
509
544
Financing Profit
516
461
512
561
684
565
599
642
787
627
695
796
820
Fin. Margin %
35%
29%
30%
31%
32%
29%
29%
29%
35%
27%
29%
32%
32%
Other Income
58
8
2
7
-90
8
11
17
41
4
15
-51
20
Interest
667
739
821
910
948
985
1,050
1,087
1,104
1,163
1,176
1,209
1,197
Depreciation
41
39
44
48
53
48
53
58
63
56
60
63
67
PBT
533
430
471
520
541
525
557
601
765
575
650
682
773
Tax %
23%
28%
30%
23%
28%
23%
27%
25%
28%
28%
24%
23%
25%
Net Profit
509
429
435
506
472
435
436
455
553
475
488
541
554
EPS in Rs
38.99
33.77
32.89
38.47
24.11
39.14
39.26
41
49.77
42.77
43.94
48.73
49.88
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Revenue
4,285
5,027
5,588
6,331
3,696
4,707
5,292
5,111
5,501
7,274
8,513
9,809
Expenses
1,505
2,221
2,735
3,906
932
1,222
1,235
1,392
1,285
1,632
1,667
2,126
Financing Profit
999
992
1,118
1,080
994
1,057
1,398
1,483
1,806
2,224
2,620
2,938
Fin. Margin %
23%
20%
20%
17%
27%
22%
26%
29%
33%
31%
31%
30%
Other Income
-27
7
8
13
482
48
24
35
43
-80
50
-11
Interest
1,782
1,814
1,735
1,344
1,770
2,427
2,659
2,236
2,410
3,418
4,226
4,745
Depreciation
112
106
104
79
58
90
93
101
139
183
223
246
PBT
860
893
1,022
1,014
1,418
1,016
1,330
1,417
1,711
1,961
2,447
2,681
Tax %
33%
34%
34%
34%
27%
21%
25%
25%
25%
27%
26%
25%
Net Profit
644
662
768
843
1,258
845
1,223
1,296
1,510
1,842
1,879
2,059
EPS in Rs
51.83
52.49
61.52
65.7
104
71.25
105
106
120
129
169
185
Div. Payout %
20%
21%
19%
18%
17%
18%
17%
19%
22%
23%
21%
13%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
111
111
111
110
110
110
110
110
110
110
110
110
Reserves
3,639
4,084
4,698
5,539
6,149
6,567
7,620
8,685
9,810
10,968
13,087
14,783
Borrowing
18,795
18,758
20,216
21,069
25,023
35,939
36,461
36,356
42,694
52,334
61,084
69,636
Other Liabilities
3,241
5,095
5,724
7,268
2,388
2,105
2,369
3,003
3,462
864
1,056
1,265
Total Liabilities
25,785
28,048
30,749
33,986
33,671
44,721
46,560
48,154
56,076
64,276
75,337
85,795
Fixed Assets
515
817
862
821
451
903
865
1,117
1,296
1,389
1,450
1,462
CWIP
2
4
3
3
0
0
0
0
1
5
1
0
Investments
2,731
4,026
4,815
8,693
4,539
5,096
6,057
8,088
8,082
5,732
6,481
9,029
Other Assets
22,537
23,201
25,070
24,469
28,680
38,722
39,638
38,950
46,697
57,150
67,405
75,305
Total Assets
25,785
28,048
30,749
33,986
33,671
44,721
46,560
48,154
56,076
64,276
75,337
85,795
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-1,430
310
-965
-5,547
-4,200
9
450
1,781
-6,504
-8,488
-8,985
-5,892
Investing
446
-83
-554
-1,182
1,000
-1,983
-243
-1,597
669
89
931
-1,371
Financing
757
-261
1,394
6,756
3,212
1,862
-122
-200
5,890
8,754
7,821
7,478
Net Cash Flow
-227
-33
-124
27
12
-111
85
-16
54
356
-233
215
Free Cash Flow
-1,460
261
-1,014
-5,578
-4,231
-34
453
1,517
-6,506
-8,558
-8,999
-5,955
CFO/OP
-41
21
-23
-214
-138
9
19
55
-145
-144
-129
-73
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
17%
15%
15%
14%
14%
12%
16%
14%
14%
14%
15%
15%

Shareholding Pattern

As of Mar 2026
Promoters 37.21%
Public 26.38%
FIIs 18.97%
Others 9.75%
DIIs 7.69%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
35.90%
35.90%
35.89%
35.89%
38.49%
38.49%
38.49%
38.49%
38.49%
38.49%
38.49%
37.88%
37.87%
37.86%
37.23%
37.22%
37.22%
37.22%
37.22%
37.21%
37.21%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
19.13%
18.97%
DIIs
10.56%
10.57%
10.69%
11.43%
13.94%
15.89%
16.32%
16.43%
16.54%
16.60%
16.18%
16.47%
12.03%
8.52%
7.58%
7.40%
7.08%
7.22%
6.84%
7.43%
7.69%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
27.50%
27.19%
27.14%
27.20%
27.16%
27.24%
26.95%
26.32%
25.98%
25.80%
25.75%
26.29%
26.85%
26.54%
26.93%
26.87%
26.78%
26.67%
26.66%
26.55%
26.38%
Others
26.03%
26.33%
26.28%
25.48%
20.41%
18.38%
18.23%
18.75%
18.98%
19.11%
19.58%
19.36%
23.25%
27.08%
28.26%
28.51%
28.92%
28.89%
29.29%
9.68%
9.75%
No. of Shareholders
0
0
23,573
22,888
22,013
23,413
24,149
24,827
24,073
35,741
41,738
42,597
42,288
43,762
44,168
45,966
46,076
49,279
55,894
55,416
57,271

Documents

1
Concall - May 2023 May 2023
2
Concall - Feb 2023 Feb 2023
3
Concall - May 2023 May 2023
4
Concall - Aug 2023 Aug 2023
5
Concall - Nov 2023 Nov 2023

Frequently Asked Questions about Sundaram Finance Ltd

What does Sundaram Finance Ltd do?
Sundaram Finance is a registered deposit taking NBFC established in 1954. The Co. is engaged in retail finance across multiple domains like Vehicle finance, Home Finance, Mutual Funds, General insurance and Financial service distribution [1]
Where is Sundaram Finance Ltd (SUNDARMFIN) listed?
Sundaram Finance Ltd is listed on the Indian stock exchanges. It is listed on NSE: SUNDARMFIN and BSE: 590071. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Sundaram Finance Ltd belong to?
Sundaram Finance Ltd operates in the Financial Services sector within the Finance industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Sundaram Finance Ltd?
Sundaram Finance Ltd has a market capitalisation of approximately ₹51146.66 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Sundaram Finance Ltd?
The Price-to-Earnings (PE) ratio of Sundaram Finance Ltd is 24.97. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Sundaram Finance Ltd?
Over the past 52 weeks, Sundaram Finance Ltd has traded between a low of ₹4,000 and a high of ₹5,642. This range helps investors understand the stock's price volatility and recent trading levels.
Does Sundaram Finance Ltd pay dividends?
Yes, Sundaram Finance Ltd has a dividend yield of 0.87%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Sundaram Finance Ltd?
Sundaram Finance Ltd has a Return on Equity (ROE) of 12.84%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Sundaram Finance Ltd on Tapetide?
On Tapetide, you can view Sundaram Finance Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Sundaram Finance is a registered deposit taking NBFC established in 1954. The Co. is engaged in retail finance across multiple domains like Vehicle finance, Home Finance, Mutual Funds, General insurance and Financial service distribution [1]

Website sundaramfinance.in
CEO Mr. Rajiv Chellappa Lochan
Employees 5,132
Listed 1998-01-07
Face Value ₹ 10
Issued Size 11,11,03,860

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