Why is Sundaram Finance falling/rising?

Sep 12 2025 10:53 PM IST
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As of 12-Sep, Sundaram Finance Ltd's stock price is 4,479.90, down 0.31%, and has underperformed its sector and the benchmark Sensex recently. Despite strong long-term fundamentals, recent flat results and negative cash flow have raised valuation concerns, leading to cautious investor sentiment.
As of 12-Sep, Sundaram Finance Ltd is experiencing a decline in its stock price, currently at 4,479.90, which reflects a decrease of 14.1 points or 0.31%. The stock has underperformed its sector by 1.51% today and has been on a consecutive downward trend for the last two days, losing 1.58% in that period. Additionally, Sundaram Finance is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Despite having a strong long-term fundamental strength with an average Return on Equity (ROE) of 13.90% and high institutional holdings at 26.63%, the stock's recent performance has been negatively impacted by flat results reported on June 25 and an operating cash flow of Rs -8,985.25 Cr, which raises concerns about its valuation, as it trades at a premium compared to its peers.

In the broader market context, Sundaram Finance's short-term performance has been unfavorable compared to the benchmark Sensex, which has gained 1.48% over the past week while Sundaram Finance has declined by 0.95%. Over the last month, the stock has also underperformed the Sensex, which increased by 2.08%, while Sundaram Finance fell by 0.47%. This underperformance, combined with falling investor participation and liquidity issues, suggests a cautious sentiment among investors, contributing to the stock's decline.
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