Strong Price Momentum and Market Outperformance
On 27 Feb 2026, Sundaram Finance Ltd recorded a day gain of 1.70%, significantly outperforming the Sensex, which declined by 0.57%. The stock also outpaced its sector by 2.37% on the same day. Over the past week, the stock surged 6.99%, while the Sensex fell 1.25%. Its one-month gain stands at 7.43%, compared to a marginal 0.09% decline in the Sensex. The three-month performance is particularly notable, with Sundaram Finance rising 19.61% against a 4.60% drop in the Sensex.
Year-to-date, the stock has appreciated 5.60%, contrasting with the Sensex’s 4.04% decline. Over longer horizons, the company’s stock has delivered exceptional returns: 22.43% over one year, 143.48% over three years, 111.50% over five years, and an impressive 368.43% over ten years. These figures substantially exceed the corresponding Sensex returns of 9.61%, 37.94%, 66.56%, and 253.20%, respectively.
Sundaram Finance is currently trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling strong upward momentum and investor confidence in its valuation trajectory.
Turnaround taking shape! This Small Cap from NBFC sector just hit profitability with strong business fundamentals showing up. Catch it before the major breakout happens!
- - Recently turned profitable
- - Strong business fundamentals
- - Pre-breakout opportunity
Financial Performance Highlights
The company’s recent quarterly results demonstrate strong operational metrics. Net sales reached a record Rs 2,513.95 crores, marking the highest quarterly figure to date. Profit before depreciation, interest and taxes (PBDIT) also hit an all-time high of Rs 2,005.24 crores, reflecting robust earnings growth.
On the balance sheet front, Sundaram Finance reported a low debt-to-equity ratio of 4.35 times for the half-year period, the lowest recorded in recent times, indicating prudent leverage management within the NBFC sector.
Institutional investors hold a significant 26.56% stake in the company, signalling confidence from entities with extensive resources and analytical capabilities.
Quality and Valuation Metrics
Sundaram Finance holds a MarketsMojo Mojo Score of 72.0, with a recent upgrade in Mojo Grade from Hold to Buy as of 1 Feb 2026. The company ranks among the top 1% of over 4,000 stocks rated by MarketsMojo, reflecting its strong fundamental quality and market standing.
The firm’s average Return on Equity (ROE) stands at 13.41%, underscoring consistent profitability and efficient capital utilisation. Despite this, the stock trades at a premium valuation with a Price to Book Value of 4, which is higher than its peers’ historical averages. The Price/Earnings to Growth (PEG) ratio is 1.1, indicating that earnings growth is roughly in line with the valuation premium.
Comparative Performance and Sector Context
Within the NBFC sector, Sundaram Finance’s performance has been exemplary. Its outperformance relative to the BSE500 index in each of the last three annual periods highlights its ability to generate consistent returns over time. The company’s market capitalisation grade is rated 2, reflecting a solid mid-cap standing within the broader market.
The stock’s proximity to its 52-week high—just 0.31% away—demonstrates sustained investor interest and resilience in a competitive sector environment.
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Summary of the Stock’s Journey to the Peak
Sundaram Finance Ltd’s ascent to its all-time high is the culmination of sustained earnings growth, disciplined financial management, and strong market positioning within the NBFC sector. The company’s ability to consistently generate returns above sector and benchmark indices over multiple time frames has been a key driver of its valuation appreciation.
Its financial discipline is evident in the reduction of leverage and record quarterly sales and earnings, which have supported investor confidence and institutional participation. The upgrade in Mojo Grade to Buy reflects recognition of these strengths by analytical frameworks.
While the stock trades at a premium valuation, this is supported by its consistent profitability and growth metrics, including a 27% rise in profits over the past year, which aligns with its PEG ratio of 1.1.
Overall, Sundaram Finance’s all-time high represents a significant milestone that encapsulates its strong fundamentals and market leadership within the NBFC sector.
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