Why is Sundaram Finance falling/rising?

Oct 29 2025 01:34 AM IST
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As of 28-Oct, Sundaram Finance Ltd's stock price is 4,684.00, reflecting a slight increase and strong recent performance with a 4.4% gain over the last six days. Despite positive indicators like high institutional holdings and a solid ROE, challenges include low operating cash flow and a high Price to Book Value, raising concerns about its valuation.
As of 28-Oct, Sundaram Finance Ltd is experiencing a slight increase in its stock price, currently at 4,684.00, with a change of 0.95 (0.02%) upward. The stock has shown strong performance recently, gaining 4.4% over the last six days and outperforming its sector by 0.28%. In terms of returns, the stock has increased by 2.98% over the past week and 4.35% over the past month, while year-to-date it has risen by 12.73%. The company benefits from strong long-term fundamentals, evidenced by an average Return on Equity (ROE) of 13.90% and high institutional holdings at 26.44%. However, it faces challenges due to flat results reported on June 25 and a relatively high Price to Book Value of 3.9, indicating that it may be trading at a premium compared to its peers.

In the broader market context, Sundaram Finance's short-term performance has significantly outpaced the benchmark Sensex, which has only increased by 0.24% over the past week. The stock's liquidity is also favorable, with a delivery volume that has risen by 43.04% against the five-day average, suggesting increased investor participation. Despite these positive indicators, the company’s operating cash flow was notably low at Rs -8,985.25 Cr, and while profits have risen by 22.9% over the past year, the stock's modest return of 0.24% raises concerns about its valuation relative to growth, as indicated by a PEG ratio of 1.2.
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