Sundaram Finance Ltd

Sundaram Finance has shown consistent growth in net sales and profits from March 2019 to March 2025, with net sales increasing from 3,693.43 Cr to 8,485.63 Cr and profit after tax rising from 1,029.82 Cr to 1,879.44 Cr. However, the company faces challenges in cash flow management, evidenced by a negative cash flow of 8,985.00 Cr in March 2025.

As of November 4, 2025, Sundaram Finance is considered undervalued with a PE ratio of 26.89, significantly lower than its peers, and has outperformed the Sensex with a year-to-date return of 14.87%, indicating an attractive valuation grade.

As of November 4, 2025, Sundaram Finance is considered an attractive investment due to its undervalued status, with a PE ratio of 26.89, an EV to EBITDA of 13.95, and a Price to Book Value of 0.35, making it more appealing than peers like Bajaj Finance and Bajaj Finserv, despite a recent stock return of -3.94% compared to the Sensex's 5.94%.

Sundaram Finance has shown consistent growth, with net sales increasing from 3,693.43 Cr in March 2019 to 8,485.63 Cr in March 2025, and net profit reaching 1,879.44 Cr. However, cash flow from operating activities has been negative, indicating challenges in cash generation despite profit growth.

As of November 3, 2025, Sundaram Finance's technical trend is mildly bearish, influenced by bearish daily moving averages and KST signals, while the weekly MACD is mildly bullish, creating a mixed outlook overall.

Sundaram Finance has shown consistent growth in net sales and profits from Mar'19 to Mar'25, with net sales rising from 3,693.43 Cr to 8,485.63 Cr and profit after tax increasing from 1,029.82 Cr to 1,879.44 Cr. However, total liabilities have also grown significantly, and cash flow from operating activities turned negative in recent years, despite an increase in earnings per share from 105.4 to 170.53.

Sundaram Finance's latest results show strong revenue growth with a consolidated net profit of ₹475.21 crores, up 9.28% year-on-year but down 14.06% quarter-on-quarter; however, profitability is under pressure due to rising costs, with a significant drop in profit margins and declining capital efficiency. Investors should watch for improvements in margin stabilization and cost management in future quarters.

As of 31 October 2025, Sundaram Finance's technical trend is bearish with moderate strength, indicated by a bearish MACD, Bollinger Bands, and KST, despite some mildly bullish signals from Dow Theory and OBV.

As of October 31, 2025, Sundaram Finance is fairly valued with a PE ratio of 26.11, outperforming Bajaj Finance's expensive valuation and positioned favorably against its peers, despite recent underperformance compared to the Sensex.

As of 31 October 2025, Sundaram Finance's technical trend has shifted to a bearish stance with moderate strength, driven by bearish signals from the weekly MACD, Bollinger Bands, and daily moving averages, despite some mildly bullish indicators.

As of October 31, 2025, Sundaram Finance is fairly valued with a PE ratio of 26.11 and a year-to-date return of 8.60%, slightly outperforming the Sensex, making it a reasonable investment opportunity compared to its peers.

As of 31 October 2025, Sundaram Finance's technical trend has shifted to bearish, driven by a bearish MACD, Bollinger Bands, and moving averages, despite a mildly bullish signal from Dow Theory and underperformance against the Sensex.

As of October 31, 2025, Sundaram Finance is fairly valued with a PE ratio of 26.11, outperforming the Sensex over three years with a 92.28% return, and offering a more attractive valuation compared to peers like Bajaj Finance and Life Insurance.

As of October 30, 2025, Sundaram Finance is considered overvalued with a PE ratio of 26.52, especially when compared to peers like Bajaj Finance at 37.56 and Life Insurance at 11.69, despite its stock outperforming the Sensex over the past three years.

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.