Sundaram Finance Ltd - Stock Valuation and Financial Performance

BSE: 590071 | NSE: SUNDARMFIN | Finance - NBFC | Mid Cap

Sundaram Finance Share Price

4,649.25 -77.60 -1.64%
as on 21-Feb'25 16:59

DeciZen - make an informed investing decision on Sundaram Finance

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

Sundaram Finance stock performance -

P/E Ratio (CD):
32.40
Market Cap:
51,655 Cr.
52-wk low:
3,625
52-wk high:
5,528.9

Is Sundaram Finance Ltd an attractive stock to invest in?

1. Is Sundaram Finance Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Sundaram Finance Ltd is a average quality company.

2. Is Sundaram Finance Ltd undervalued or overvalued?

The key valuation ratios of Sundaram Finance Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Sundaram Finance Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Sundaram Finance Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Sundaram Finance:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Sundaram Finance Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Operating Income (₹ Cr.)4,2384,9595,5556,2903,6934,7085,2485,1085,4767,2677,617
YoY Gr. Rt. %-17%12%13.2%-41.3%27.5%11.5%-2.7%7.2%32.7%-
Adj EPS (₹ ) 51.852.561.566.3105.471.9105.7106.5120.5130.3143.5
YoY Gr. Rt. %-1.3%17.2%7.7%59%-31.8%47.2%0.7%13.2%8.2%-
BVPS (₹ )337.4377.4432.7512.8568605.9701.5798899.91,004.71,166.7
YoY Gr. Rt. %-11.9%14.7%18.5%10.8%6.7%15.8%13.8%12.8%11.6%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)2.32.22.32.132.12.22.32.52.40

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest Income6.2%14.5%11.5%32.7%
Adj EPS10.8%4.3%7.2%8.2%
BVPS12.9%12.1%12.7%11.6%
Share Price 12% 23.1% 34.2% 11%

Key Financial Ratios

RATIOS \ YEARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)0000000000-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 0000000000-
Margins
Net Profit Margin (%)13.511.812.210.627.917.119.120.923.419.620.9
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)16.814.71512.817.312.513.912.913.713.612.3

Recent Performance Summary

Total Income has increased 11.46 CAGR in last 3 years

Net Profit has increased 7.21 CAGR in last 3 years

Total income growth is not so good in last 4 quarters

Return on Equity has declined versus last 3 years average to 13.20%

Latest Financials - Sundaram Finance Ltd.

Standalone Consolidated
TTM EPS (₹) 135.3 143.5
TTM Sales (₹ Cr.) 6,038 7,617
BVPS (₹.) 984.3 1,166.7
Reserves (₹ Cr.) 10,825 12,851
P/BV 4.72 3.99
PE 34.37 32.40
From the Market
52 Week Low / High (₹) 3625.00 / 5528.85
All Time Low / High (₹) 72.50 / 5528.85
Market Cap (₹ Cr.) 51,655
Equity (₹ Cr.) 111.1
Face Value (₹) 10
Industry PE 27.6

Quarterly Results

 Mar'24 YoY Gr. Rt. %Jun'24 YoY Gr. Rt. %Sep'24 YoY Gr. Rt. %Dec'24 YoY Gr. Rt. %
Operating Income1,941 45.81,784 25.51,892 22.22,001 21.2
Adj EPS (₹)30.14 -23.339.14 15.939.57 19.340.99 6.6
Net Profit Mgn %21.00 -672 bps20.61 115 bps19.47 28 bps20.60 -126 bps

Management X-Ray of Sundaram Finance:

Shareholding Pattern

JavaScript chart by amCharts 3.21.5
JavaScript chart by amCharts 3.21.5Promoters:37.22%Institutions:26.47%Non-Institutions:36.31%

Promoter's Holding & Share Pledging

JavaScript chart by amCharts 3.21.5Sep22Dec22Mar23Jun23Sep23Dec23Mar24Jun24Sep24Dec240%10%20%30%40%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Valuation of Sundaram Finance

MRP
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MOS
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DP
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Base BVPS
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DPS
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MRP: ₹ 0
DP: ₹0
Base BVPS ₹:
DPS ₹:
MOS (%):
Save my Valuation
Expected BVPS Growth Rate:
0%
Base 0%
30%
Expected Rate of Return:
0%
Base 0%
30%
Future PBV:
0
Base 0
40
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max

Event Update

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Analyst's Notes

Sundaram Finance : Q4FY23 Result Update - 02 Jun 2023

Particulars

Q4FY23

YoY Growth

Comments

Advances

34,552

16.9%

Commercial vehicle loans grew 20.1% YoY to 16,170 Cr

Net Interest Income (NII)

431

5.1%

NIM at 5.1%

Gross Non-Performing Asset (GNPA)

1.7%

-50 bps

 

Profit after tax (PAT)

316

5.9%

 

Good results driven by advances growth & improvement in asset quality.

 

Key Ratios of Sundaram Finance

Adj EPS (Rs.)

Total Income (Cr.)

ROE (%)

BVPS (Rs.)

Company Name CMP(₹)
Change ₹(%)
Market Cap
Net Sales (₹ Cr.)
Latest EPS (₹)
Net Profit Margin %
Latest P/E
Latest P/BV
Aditya Birla Capital 157.3 -0.8 (-0.5%) Mid Cap 34,506 14.2 10 11.1 1.4
SBI Cards AndPayment 835.1 -14.5 (-1.7%) Mid Cap 16,968 21.5 14.2 39.5 6
Mah & Mah Finl. Serv 270.4 -10.3 (-3.7%) Mid Cap 15,797 20 12.3 14 1.7
L&T Finance 135.8 -1.8 (-1.3%) Mid Cap 13,581 10.3 17.1 13.4 1.4
Muthoot Finance 2,212 -64.2 (-2.8%) Mid Cap 12,635 118.3 32.1 19.2 3.4
Sundaram Finance 4,649.3 -77.6 (-1.6%) Mid Cap 7,267 143.5 19.6 32.9 4.1
Indian Ren. Energy 177.2 3.4 (2%) Mid Cap 4,964 5.7 25.2 30.4 4.8
Poonawalla Fincorp 290.1 -0.1 (-0%) Mid Cap 3,114 2.2 66 132 2.8
Tata Invest Corp 5,947 -134.9 (-2.2%) Mid Cap 288 55.9 83.7 108.9 0.8

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Income4,2965,0395,5976,3443,7134,7605,3905,1865,5537,286
Interest Income4,2384,9595,5556,2903,6934,7085,2485,1085,4767,267
Other Income 588042541952143777718
Expenditure 3,4364,1464,5745,3302,7613,7444,0613,7693,8425,233
Interest Expense 1,7821,8151,7351,3441,7702,4272,7112,2762,4103,418
Operating Expenses 9181,1862,6723,7928459318951,0021,1331,411
Provisions 7361,145168193145386455491299403
Exceptional Items 00004660000-92
Profit Before Tax 8608931,0221,0141,4181,0161,3301,4171,7111,961
Taxes 287308345348388210328350429539
Profit After Tax 5735856776661,0308051,0021,0671,2821,422
Adjusted EPS (₹)51.852.561.566.3105.471.9105.7106.5120.5130.3
Dividend Payout Ratio (%)20%21%19%18%17%18%17%19%22%23%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Equity Capital3,7504,1954,8095,6496,2596,6777,7308,7959,92011,078
Share Capital 111111111110110110110110110110
Reserves 3,6394,0844,6985,5396,1496,5677,6208,6859,81010,968
Minority Interest4106046812307173914551720229427290
Long Term Borrowings11,9249,87511,92816,77023,98535,29333,15933,18437,63347,705
Current Liabilities 9,57913,22613,2059,2601,6871,1973,8493,7275,6145,448
Trade Payables4389199814,1011129981137151187
Short term borrowings2,2762,6834,4474,4481,1265933,2543,0784,9394,658
Other Liabilities-2,714-3,602-5,428-8,549-1,238-692-3,335-3,215-5,089-4,846
Total Liabilities 25,66227,89930,62433,98633,67144,62346,45848,00055,89564,231

Assets

Non Current Asset 16,08518,53120,42029,27230,87131,80434,00834,32740,21846,466
Loan Asset 12,34612,93314,01319,95425,92927,35828,79828,03333,03741,073
Other Non Current Asset 3,7395,5986,4089,3184,9424,4465,2116,2937,1805,393
Current Asset 9,5779,36810,2034,7142,80012,81812,45013,67315,67717,765
Current Investment9289461,2887914582,0172,1623,3922,8252,292
Other Current Asset8,6498,4228,9153,9232,34210,80110,28810,28112,85215,474
Total Assets 25,66227,89930,62433,98633,67144,62346,45848,00055,89564,231

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity -1,430310-965-5,547-4,20094501,781-6,504-8,486
Cash Flow From Investing Activity 446-103-554-1,1821,000-1,983-243-1,59766989
Cash Flow From Financing Activity 757-2611,3946,7563,2121,862-122-2005,8908,754
Net Cash Flow -227-54-1242712-11185-1654357
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Operational & Financial Ratios

EPS (₹)5252626610572106106120130
DPS (₹)11111212181318202730
BVPS (₹)3373774335135686067027989001005

Performance Ratios

ROA (%)2.32.22.32.13.02.12.22.32.52.4
ROE (%)16.814.715.012.817.312.513.912.913.713.6
ROCE (%)12.211.911.59.111.09.39.38.38.49.3

Valuation Parameters

Price/Book(x)4.53.53.73.32.72.03.72.42.54.1

Sundaram Finance Ltd Stock News

Sundaram Finance Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Sundaram Finance on 21-Feb-2025 16:59 is ₹4,649.3.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 21-Feb-2025 16:59 the market cap of Sundaram Finance stood at ₹51,655.
The latest P/E ratio of Sundaram Finance as of 21-Feb-2025 16:59 is 34.37.
The latest P/B ratio of Sundaram Finance as of 21-Feb-2025 16:59 is 4.72.
The 52-week high of Sundaram Finance is ₹5,528.9 and the 52-week low is ₹3,625.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Sundaram Finance is ₹6,038 ( Cr.) .

About Sundaram Finance Ltd

Sundaram Finance, a Sundram Group company, was incorporated in 1954, with the object of financing the purchase of commercial vehicles and passenger cars. The company was started with a paid-up capital of Rs.2.00 Lakhs and later went public in 1972.

The company's shares were listed in the Madras Stock Exchange in 1972 and in the National Stock Exchange in January 1998.

Subsequently, the equity shares of the company have been delisted from Madras Stock Exchange Limited (MSE) with effect from January 27, 2004, in accordance with SEBI (Delisting of Securities) Guidelines, 2003, for voluntary delisting.

Sundaram has grown today into one of the most trusted financial services groups in India. Today, the activities of the group span savings products like deposits and mutual funds, car and commercial vehicle finance, insurance, home loans, software solutions, business process outsourcing, tyre finance, fleet cards and logistics services. The strength of the Group lies in the quick completion of transactions, long association with transporters for generations and the intimate knowledge of the market and its nuances.

The Group has a vast network of over 400 branches to cater to the financing needs of our customers.

Sundaram Finance is one of the oldest and largest providers of finance for the acquisition of commercial vehicles of all makes.The commercial vehicle finance provided by it helps the small operators to acquire vehicles with minimum hassle and documentation. It provides customised financing options to suit the needs.

Large fleet operators also find it easy to expand their fleet through the finance provided by the company. It also offers special schemes, supported by the manufacturers, where the rates are highly competitive. The finance schemes are easy to understand and without any hidden costs.

The other Group Companies:

  • Lakshmi General Finance (since merged with SFL on 1/4/2005)
  • Sundaram BNP Paribas Asset Management
  • Sundaram BNP Paribas Home Finance
  • Royal Sundaram Alliance Insurance
  • Sundaram Infotech Solutions
  • Sundaram Business Services
  • Sundaram Finance Distribution Limited
  • LGF Services Limited
  • Infreight Logistics Solutions Limited

Milestones:

  • 2008- Union de Credit pour le Batiment SA (UCB), a wholly owned subsidiary of BNP Paribas SA, France acquires 49.90% stake in Sundaram Home Finance Ltd from SFL.
  • 2006- BNP Paribas Asset Management Group, France acquires 49.90 % stake in Sundaram Asset Management Company Ltd from SFL.
  • 2005- Merger with LGF making SF Billion dollar Balance sheet NBFC
  • 2001- Promoted Sundaram Business Services - BPO arm of Sundaram Finance
  • 2000-Promoted Sundaram Infotech Solutions - Infotech division of Sundaram Finance
  • 1999- Promoted Sundaram Home Finance Limited with equity participation from International Finance Corporation (IFC), Washington, and FMO Netherlands
  • 1998- Promoted Fiat Sundaram Auto Finance Limited, a joint venture with Fidis S.p.A., Italy

Awards/ Achievements

  • ‘Certificate of Commendation’ award by the Government of India under the scheme of “Good Tax Payers”.
  • “Second Best Tax Payer” in the category of Private Sector Company for Assessment Year 1994-95 in Tamil Nadu Region, from the Income Tax Department, Tamil Nadu.
  • ‘Rolling Trophy’ by Rotary Club of Madras South West for Best Employer-Employee Relationship for the year 1995-96.
  • “Best Tax Payer” in the category of Private Sector Company for Assessment Year 1995-96 in Tamil Nadu Region, from the Income Tax Department, Tamil Nadu.
  • “Automan Award” to Shri T S Santhanam, Chairman, from Motor India in 1998.
  • “Pioneering Service Award” to Shri T S Santhanam Chairman, from Chennai Good Transport Association.
  • “Sarige Ratna Award” to Shri T S Santhanam, Chairman, from the Bangalore City Lorry Transporting Agents’ Association (Regd).
  • “Most Valued Customer Award” to Shri T S Santhanam Chairman, from the State Bank of India.
  • “The Best Financier of the New Millennium 2000” to Shri. G K Raman, Managing Director, from the All India Motor Transport Congress.
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