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Sundaram Finance

SUNDARMFIN NSE

Key Fundamentals

MidcapNBFCFinancial Services
Market Cap
₹52,025 Cr
Volatility
Moderate
P/E Ratio
23.58
EBITDA
₹7,747 Cr
Return on Equity
13.46%
Debt to Equity
4.65
Book Value
₹1,340.6
EPS
₹140.47
52W High
₹5,642
52W Low
₹4,000

Tapetide Score

Data-driven rating, 0–100. How it works →

Key Insights

Strengths

1
  • Company has been maintaining a healthy dividend payout of 21.6%

Weaknesses

2
  • Stock is trading at 3.51 times its book value
  • Company has low interest coverage ratio.

Growth Rate

Revenue Growth
15.3% lower than 3Y
Net Income Growth
10.62% lower than 3Y
Cash Flow Change
34.42% higher than 3Y
ROE
-2.04% lower than 3Y
ROCE
-4.93% lower than 3Y
EBITDA Margin (Avg.)
-2.56% lower than 3Y

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 2d ago
AI opinion · based on fundamentals
Risk medium

Sundaram Finance Ltd, with a market cap of ₹52,026 Cr and a PE of 23.5x, is a well-established NBFC that has delivered consistent 15% ROE over the last decade alongside compounded profit growth of 14% over 10 years. The company trades at 3.51x book value with a dividend yield of 0.85%, while recent TTM sales growth of 14% and profit growth of 19% indicate an accelerating trend relative to its longer-term averages.

Bull Case 7
  • Consistent ROE of 15% maintained across 1-year, 3-year, 5-year, and 10-year periods, reflecting stable and disciplined capital allocation
  • TTM profit growth of 19% outpaces the 10-year compounded profit CAGR of 14%, signaling improving profitability momentum
  • 3-year compounded sales growth of 21% is significantly above the 10-year average of 7%, indicating a strong recent business expansion phase
  • Long track record of healthy dividend payout at 21.6%, providing regular income to shareholders
  • 10-year stock price CAGR of 14% has broadly tracked compounded profit growth of 14%, suggesting earnings-driven appreciation rather than speculative re-rating
  • TTM sales growth of 14% is above the 5-year compounded sales CAGR of 13%, indicating sustained top-line momentum
  • Market cap of ₹52,026 Cr positions the company as a large, established player in the Indian financial services space, offering liquidity and institutional ownership
Bear Case 7
  • Stock trades at 3.51x book value, which is elevated for an NBFC and limits margin of safety if growth slows
  • Low interest coverage ratio flagged as a known concern, raising questions about the company's ability to comfortably service debt obligations from operating earnings
  • Dividend yield of just 0.85% is modest relative to the financial services sector and may not adequately compensate for valuation risk at 3.51x PB
  • 1-year stock price return of only 5% significantly trails the 3-year CAGR of 19%, suggesting recent price momentum has stalled
  • 10-year compounded sales CAGR of just 7% indicates historically slow top-line growth, and the recent acceleration to 21% over 3 years may not be sustainable
  • PE of 23.5x is not inexpensive for a lending business, and any earnings disappointment could trigger a de-rating
  • 5-year compounded profit and sales growth are both at 13%, suggesting limited operating leverage improvement over the medium term

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

AI News Digest

Anthropic anthropic claude-opus-4.6 2h ago
Headwinds 3
  • Valuation premium over peers Aug 27

    Sundaram Finance trades at 22x PE versus the industry median of 19x, indicating de-rating pressure if earnings growth slows.

  • Borrowings compounding at 14% Aug 27

    Borrowings have compounded at about 14% annually over five years to ₹69,636 crore, reflecting aggressive balance sheet growth that carries interest rate risk.

  • Stock well below 52-week high Aug 27

    Stock closed at ₹4,540 on Aug 26 against a 52-week high of ₹5,642, a roughly 20% drawdown from the peak suggesting ongoing de-rating.

Positives 4
  • Best quarterly profit in 3 years Aug 27

    Sundaram Finance reported Q1 FY27 revenue of ₹2,644 crore (up 13%) and net profit of ₹636 crore (up 34%), its strongest quarterly performance in three years.

  • Steady 16% financing profit CAGR Aug 27

    Financing profit grew from ₹1,398 crore in FY21 to ₹2,980 crore in FY26, a 16% CAGR demonstrating consistent core business momentum.

  • Damani holds stake, signals confidence Aug 27

    Ace investor Radhakishan Damani's portfolio includes Sundaram Finance alongside other high-conviction bets, lending marquee investor credibility to the stock.

  • 12% five-year compounded returns Aug 27

    Despite recent de-rating, the stock has delivered a 12% compounded return over five years, outperforming fixed-income benchmarks.

Neutral 1
  • Damani's Horizon IPO bet unrelated Aug 27

    The article primarily covers Damani's ₹1,650 crore pre-IPO placement in Horizon Industrial Parks, a debt-heavy warehousing company that listed on Aug 24 — not directly relevant to Sundaram Finance's fundamentals.

TL;DR: Sundaram Finance delivered its best quarter in three years with 34% profit growth and a strong 16% financing profit CAGR over five years, supported by marquee investor interest. Key risks include a premium valuation at 22x PE versus the 19x industry median and rapidly growing borrowings at 14% CAGR. The stock sits about 20% below its 52-week high, reflecting de-rating pressure. The trend is operationally improving, but sustained earnings beats will be needed to justify the valuation premium and reverse the price correction.

Quarterly Results

Particulars Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Revenue
1,582
1,708
1,821
2,156
1,952
2,085
2,190
2,259
2,349
2,386
2,514
2,560
2,644
Expenses
382
375
351
524
402
436
462
368
559
515
509
544
580
Financing Profit
461
512
561
684
565
599
642
787
627
695
796
820
818
Fin. Margin %
29%
30%
31%
32%
29%
29%
29%
35%
27%
29%
32%
32%
31%
Other Income
8
2
7
-90
8
11
17
41
4
15
-51
20
9
Interest
739
821
910
948
985
1,050
1,087
1,104
1,163
1,176
1,209
1,197
1,247
Depreciation
39
44
48
53
48
53
58
63
56
60
63
67
60
PBT
430
471
520
541
525
557
601
765
575
650
682
773
767
Tax %
28%
30%
23%
28%
23%
27%
25%
28%
28%
24%
23%
25%
26%
Net Profit
429
435
506
472
435
436
455
553
475
488
541
554
636
EPS in Rs
33.77
32.89
38.47
24.11
39.14
39.26
41
49.77
42.77
43.94
48.73
49.88
57.26
Figures in ₹ Crores

Profit & Loss

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Revenue
4,285
5,027
5,588
6,331
3,696
4,707
5,292
5,111
5,501
7,274
8,513
9,852
10,104
Expenses
1,505
2,221
2,735
3,906
932
1,222
1,235
1,392
1,285
1,632
1,667
2,126
2,147
Financing Profit
999
992
1,118
1,080
994
1,057
1,398
1,483
1,806
2,224
2,620
2,980
3,128
Fin. Margin %
23%
20%
20%
17%
27%
22%
26%
29%
33%
31%
31%
30%
31%
Other Income
-27
7
8
13
482
48
24
35
43
-80
50
-54
-6
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
4,829
Depreciation
112
106
104
79
58
90
93
101
139
183
223
246
249
PBT
860
893
1,022
1,014
1,418
1,016
1,330
1,417
1,711
1,961
2,447
2,681
2,872
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
2,220
EPS in Rs
51.83
52.49
61.52
65.7
104
71.25
105
106
120
129
169
185
200
Div. Payout %
20%
21%
19%
18%
17%
18%
17%
19%
22%
23%
21%
21%
—
Figures in ₹ Crores

Balance Sheet

Particulars 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
1,457
CWIP
2
4
3
3
0
0
0
0
1
5
1
5
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

Particulars 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
-5,921
CFO/OP
-41
21
-23
-214
-138
9
19
55
-145
-144
-129
-72
Figures in ₹ Crores

Ratios

Particulars 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%

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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Shareholding Pattern

Public26.42%Promot.37.21%DIIs8.00%Others9.79%FIIs18.58%As ofJun 2026

Documents

1
Concall - Nov 2025 Nov 2025
2
Concall - Aug 2025 Aug 2025
3
Concall - May 2024 May 2024
4
Concall - May 2024 May 2024
5
Concall - Nov 2023 Nov 2023

Frequently Asked Questions about Sundaram Finance

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 trades as SUNDARMFIN on the NSE and under code 590071 on the BSE.
Which sector does Sundaram Finance Ltd belong to?
Sundaram Finance Ltd is classified under the Financial Services sector, in the Finance industry.
What is the market capitalisation of Sundaram Finance Ltd?
Sundaram Finance Ltd has a market capitalisation of ₹52,025 Cr, which places it in the Large Cap band.
What is the PE ratio of Sundaram Finance Ltd?
Sundaram Finance Ltd trades at a PE ratio of 23.58, on earnings per share of ₹140.47, against a book value of ₹1,340.6 per share.
What is the 52-week high and low of Sundaram Finance Ltd?
Over the last 52 weeks Sundaram Finance Ltd has traded between ₹4,000 and ₹5,642.
Does Sundaram Finance Ltd pay dividends?
Sundaram Finance Ltd has a dividend yield of 0.85%.
What is the Return on Equity (ROE) of Sundaram Finance Ltd?
Sundaram Finance Ltd reported a return on equity of 13.46%. Its debt-to-equity ratio is 4.65.

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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