Why is Sundaram Finance falling/rising?

Sep 02 2025 11:07 PM IST
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As of 02-Sep, Sundaram Finance Ltd's stock price is 4,328.80, down 2.64% and has fallen 17.9% over the last six days. Despite strong long-term fundamentals, the stock is underperforming its sector and the benchmark Sensex, reflecting challenges such as high valuation and liquidity issues.
As of 02-Sep, Sundaram Finance Ltd's stock price is currently at 4,328.80, reflecting a decline of 117.2 points or 2.64%. The stock has been underperforming significantly, with a consecutive fall over the last six days resulting in a total drop of 17.9%. Today's performance indicates that it has underperformed its sector by 2.51%, and it reached an intraday low of Rs 4,224.8, which is a decrease of 4.98%. Additionally, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Despite having strong long-term fundamentals, including a solid average Return on Equity (ROE) of 13.90% and high institutional holdings at 26.63%, the stock's expensive valuation, indicated by a Price to Book Value of 3.6, and flat operating cash flow results have contributed to its recent decline.

In the broader market context, Sundaram Finance's short-term performance has been notably worse than the benchmark Sensex, which has only declined by 0.78% over the past week compared to the stock's 11.42% drop. The stock's year-to-date return of 4.18% is still better than the Sensex's 2.58%, but the one-year performance shows a significant underperformance with a return of -12.79% against the Sensex's -2.91%. This stark contrast highlights the stock's recent struggles, particularly in light of falling investor participation and liquidity issues, which may further exacerbate its downward trajectory.
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