Sundaram Finance Reports Record Q3 FY24-25 Sales Amid Long-Term Growth Concerns

Feb 10 2025 07:03 PM IST
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Sundaram Finance has recently adjusted its evaluation, reflecting its current market position. The company reported strong third-quarter FY24-25 results, with record net sales and profit after tax. Despite these achievements, long-term growth challenges and a shift in technical indicators have been noted, alongside a premium trading status.
Sundaram Finance, a prominent player in the finance/NBFC sector, has recently undergone an adjustment in evaluation that reflects its current market standing. The company reported positive financial performance for the third quarter of FY24-25, with net sales reaching a record high of Rs 2,190.31 crore and a PBDIT of Rs 1,728.80 crore. Additionally, the profit after tax (PAT) also marked a peak at Rs 455.47 crore.

Despite these achievements, the stock has been noted for its long-term growth challenges, with net sales growing at an annual rate of 13.93%. The stock's technical indicators have shifted, placing it in a mildly bearish range, which contrasts with its previous mildly bullish status. The Bollinger Band has also indicated a bearish trend since early February 2025.

Sundaram Finance maintains a strong long-term fundamental strength, evidenced by an average return on equity (ROE) of 13.55%. However, the stock is currently trading at a premium compared to its historical valuations, with a price-to-book ratio of 4. High institutional holdings at 26.47% suggest that these investors possess the resources to analyze the company's fundamentals effectively.

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