Sundaram Finance

Why is Sundaram Finance Ltd falling/rising?

As of 06-Aug, Sundaram Finance Ltd's stock price is declining, currently at 4,638.90, with a total drop of 4.17% over the last three days. Despite strong long-term fundamentals, the stock has underperformed its sector and the benchmark Sensex, indicating a bearish trend and reduced investor interest.

As of 06-Aug, Sundaram Finance Ltd's stock price is falling, currently at 4,638.90, reflecting a decrease of 41.05 points or 0.88%. This decline is part of a broader trend, as the stock has been losing value for the last three days, resulting in a total drop of 4.17% during this period. Additionally, the stock has underperformed its sector by 0.73% today.<BR><BR>Investor participation appears to be decreasing, with the delivery volume on 05 August falling by 57.05% compared to the five-day average, indicating reduced trading interest. While the stock is trading above its 20-day, 50-day, and 100-day moving averages, it is below the 5-day and 200-day moving averages, suggesting a potential bearish trend in the short term.<BR><BR>Despite some positive long-term fundamentals, such as a strong average Return on Equity (ROE) of 13.73% and a PEG ratio of 1.2, the year-to-date performance shows a significant decline of 12.16%, compared to a lesser drop of 7.35% in the benchmark Sensex. This underperformance, coupled with recent price movements and declining investor engagement, contributes to the current falling stock price of Sundaram Finance Ltd.

Which are the latest news on Sundaram Finance?

Are Sundaram Finance Ltd latest results good or bad?

Sundaram Finance Ltd's Q1 FY27 results are generally positive, with a net profit of ₹636.19 crore (up 33.88% year-on-year) and net sales of ₹2,644.13 crore (up 12.57%). However, there are concerns about margin compression due to rising interest costs, as the PAT margin decreased to 21.51%.

Sundaram Finance Ltd's latest results for Q1 FY27 can be considered good overall. The company reported a net profit of ₹636.19 crore, which reflects a significant year-on-year increase of 33.88%. Additionally, net sales reached ₹2,644.13 crore, marking a healthy growth of 12.57% compared to the same quarter last year.<BR><BR>However, there are some concerns regarding margin compression, as the profit after tax (PAT) margin decreased to 21.51% from 22.67% in the previous quarter. This decline is attributed to rising interest costs, which increased more than the revenue growth.<BR><BR>Despite the margin pressures, the company demonstrated strong capital efficiency with a return on equity (ROE) of 14.21%. The overall financial performance indicates that Sundaram Finance is maintaining its growth momentum in a challenging environment, making the results generally positive, albeit with some caution regarding future margin sustainability.

Should I buy, sell or hold Sundaram Finance Ltd?

What does Sundaram Finance do?

Sundaram Finance Ltd is a mid-cap NBFC primarily financing commercial vehicles, cars, and construction equipment. As of March 2026, it reported net sales of ₹2,560 Cr and a net profit of ₹554 Cr, with a market cap of ₹47,682 Cr.

Overview:<BR>Sundaram Finance Ltd is a mid-cap company operating in the Non-Banking Financial Company (NBFC) sector, primarily engaged in financing commercial vehicles, cars, construction equipment, and other vehicles in the retail segment.<BR><BR>History:<BR>Sundaram Finance Ltd was incorporated in 1954 and became a public limited company in 1961, going public in 1972. The latest quarterly results reported net sales and net profit for the period ending March 2026.<BR><BR>Financial Snapshot:<BR>- Net Sales: 2,560 Cr (Quarterly Results - Mar 2026)<BR>- Net Profit: 554 Cr (Quarterly Results - Mar 2026)<BR>- Market Cap: INR 47,682 Cr (Mid Cap)<BR><BR>Key Metrics:<BR>- P/E: 22.00<BR>- Industry P/E: 20<BR>- Dividend Yield: 0.88%<BR>- Debt-Equity: 4.68<BR>- Return on Equity: 14.21%<BR>- Price to Book: 3.13<BR><BR>Contact Details:<BR>- Address: 21 Patullos Road, Chennai Tamil Nadu: 600002<BR>- Tel: 91-44-28521181<BR>- Email: investorservices@sundaramfinance.in<BR>- Website: http://www.sundaramfinance.in

How big is Sundaram Finance?

As of 10th June, Sundaram Finance Ltd has a market capitalization of 47,682.00 Cr, with recent net sales of 9,808.92 Cr and a net profit of 2,058.86 Cr.

As of 10th June, Sundaram Finance Ltd has a market capitalization of 47,682.00 Cr, categorizing it as a Mid Cap company.<BR><BR>In the latest four quarters, Sundaram Finance reported Net Sales of 9,808.92 Cr and a Net Profit of 2,058.86 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, with Shareholder's Funds amounting to 13,196.83 Cr and Total Assets valued at 75,336.67 Cr.

Who are in the management team of Sundaram Finance?

The management team of Sundaram Finance includes Chairman S Viji, Executive Vice Chairman Harsha Viji, Managing Director Rajiv C Lochan, and Deputy Managing Director A N Raju, along with several independent directors and a non-executive director, bringing diverse expertise to the company's governance.

The management team of Sundaram Finance includes the following key individuals:<BR><BR>1. **S Viji** - Chairman (Non-Executive)<BR>2. **Harsha Viji** - Executive Vice Chairman<BR>3. **Rajiv C Lochan** - Managing Director<BR>4. **A N Raju** - Deputy Managing Director<BR>5. **P N Srikant** - Company Secretary & Compliance Officer<BR><BR>Additionally, the board comprises several independent directors, including:<BR><BR>- **S Prasad**<BR>- **P N Venkatachalam**<BR>- **Shobhana Ramachandhran**<BR>- **S Mahalingam**<BR>- **R Raghuttama Rao**<BR>- **L Ganesh**<BR>- **Bhavani Balasubramanian**<BR><BR>There is also a non-executive director, **Srivats Ram**, and a director, **T T Srinivasaraghavan**. This diverse team brings a wealth of experience to the company, contributing to its strategic direction and governance.

Who are the peers of the Sundaram Finance?

Sundaram Finance's peers include Muthoot Finance, Aditya Birla Capital, L&T Finance, SBI Cards, HDB Financial Services, Authum Investments, M&M Financial Services, Poonawalla Finance, Tata Investment Corporation, and Manappuram Finance. In terms of management risk and growth, Muthoot Finance and Aditya Birla Capital show strong performance, while Sundaram Finance has average growth and management risk.

Peers: The peers of Sundaram Finance are Muthoot Finance, Aditya Birla Cap, L&T Finance Ltd, SBI Cards, HDB FINANC SER, Authum Invest., M & M Fin. Serv., Poonawalla Fin, Tata Inv.Corpn., and Manappuram Fin.<BR><BR>Quality Snapshot: Excellent management risk is observed at Muthoot Finance and SBI Cards, while Good management risk is found at Aditya Birla Cap, HDB FINANC SER, and Sundaram Finance. Average management risk is noted at L&T Finance Ltd, Authum Invest., M & M Fin. Serv., and Poonawalla Fin, and Below Average management risk is seen at Tata Inv.Corpn. In terms of growth, Good growth is seen at Muthoot Finance, Aditya Birla Cap, and Poonawalla Fin, while Average growth is observed at Sundaram Finance, M & M Fin. Serv., and the rest. Below Average growth is noted at L&T Finance Ltd and Authum Invest. <BR><BR>Return Snapshot: Aditya Birla Cap has the highest 1-year return at 38.15%, while SBI Cards has the lowest at -41.99%. Sundaram Finance's 1-year return of -17.68% is better than SBI Cards but worse than Aditya Birla Cap. Additionally, the six-month return is negative for SBI Cards, HDB FINANC SER, L&T Finance Ltd, M & M Fin. Serv., and Poonawalla Fin.

Has Sundaram Finance Ltd declared dividend?

Yes, Sundaram Finance Ltd has declared a dividend of 160%, amounting to ₹21 per share, with an ex-date of February 6, 2026. The company has demonstrated strong total returns across various periods, with a 5-year total return of 192.57%.

Sundaram Finance Ltd has declared a dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 160%<BR>- Amount per share: 21<BR>- Ex-date: 06 Feb 26<BR><BR>Dividend Yield: 0.65%.<BR><BR>Total Returns by Period:<BR>In the 3 Months period, the price return was 13.23%, the dividend return was 0.34%, resulting in a total return of 13.57%.<BR><BR>In the 6 Months period, the price return was 21.16%, the dividend return was 0.35%, leading to a total return of 21.51%.<BR><BR>For the 1 Year period, the price return was 16.14%, the dividend return was 0.82%, culminating in a total return of 16.96%.<BR><BR>Over the 2 Years period, the price return was 49.71%, the dividend return was 2.16%, which resulted in a total return of 51.87%.<BR><BR>In the 3 Years period, the price return was 134.27%, the dividend return was 4.12%, giving a total return of 138.39%.<BR><BR>For the 4 Years period, the price return was 139.84%, the dividend return was 6.39%, resulting in a total return of 146.23%.<BR><BR>In the 5 Years period, the price return was 187.46%, the dividend return was 5.11%, leading to a total return of 192.57%.<BR><BR>Overall, Sundaram Finance Ltd has declared a substantial dividend and has shown impressive total returns across various periods, indicating strong financial performance and shareholder value.

How has been the historical performance of Sundaram Finance?

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.

Answer:<BR>The historical performance of Sundaram Finance shows a consistent upward trend in net sales and profits over the years, culminating in significant growth by March 2025.<BR><BR>Breakdown:<BR>Sundaram Finance's net sales increased from 3,693.43 Cr in March 2019 to 8,485.63 Cr in March 2025, reflecting a strong growth trajectory. Total operating income followed a similar pattern, rising from 3,693.43 Cr in March 2019 to 8,485.63 Cr in March 2025. The operating profit (PBDIT) also saw a substantial increase, reaching 6,895.93 Cr in March 2025, up from 2,780.32 Cr in March 2019. Profit before tax rose from 1,417.78 Cr in March 2019 to 2,447.39 Cr in March 2025, while profit after tax increased from 1,029.82 Cr to 1,879.44 Cr over the same period. The company's total assets grew from 44,622.51 Cr in March 2020 to 75,336.67 Cr in March 2025, indicating robust asset accumulation. However, total liabilities also increased significantly, from 44,622.51 Cr to 75,336.67 Cr, primarily driven by short-term borrowings which rose from 30,531.46 Cr to 52,406.48 Cr. Cash flow from operating activities showed a negative trend, with a cash outflow of 8,985.00 Cr in March 2025, compared to a positive inflow of 2,008.00 Cr in March 2020. Despite this, the company maintained a closing cash balance of 310.00 Cr in March 2025, down from 543.00 Cr in March 2024. Overall, Sundaram Finance has demonstrated strong revenue growth and profitability, although it faces challenges in cash flow management.

Is Sundaram Finance overvalued or undervalued?

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 4 November 2025, Sundaram Finance has moved from a fair to an attractive valuation grade, indicating a positive shift in its market perception. The company is currently considered undervalued, with a PE ratio of 26.89, an EV to EBITDA of 13.95, and a Price to Book Value of 0.35, which suggests that the stock may be trading below its intrinsic value compared to its earnings and assets.<BR><BR>In comparison to its peers, Sundaram Finance's PE ratio of 26.89 is significantly lower than that of Bajaj Finance, which stands at 37.67, and Bajaj Finserv at 34.81, both of which are categorized as very expensive. Additionally, the company's PEG ratio of 1.29 is more favorable compared to the industry average, reinforcing its attractive valuation. Notably, Sundaram Finance has outperformed the Sensex with a year-to-date return of 14.87% against the Sensex's 6.81%, further supporting the argument for its undervaluation.

Is Sundaram Finance technically bullish or bearish?

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.

As of 3 November 2025, the technical trend for Sundaram Finance has changed from bearish to mildly bearish. The current technical stance is mildly bearish, driven by the daily moving averages indicating a bearish position and the KST showing bearish signals on both weekly and monthly time frames. The MACD on a weekly basis is mildly bullish, but the monthly MACD remains mildly bearish, creating a mixed outlook. The Bollinger Bands suggest a sideways movement on the weekly chart while being bullish on the monthly. Overall, the Dow Theory indicates a mildly bullish stance on the weekly but mildly bearish on the monthly, contributing to the overall mildly bearish sentiment.

Who are the top shareholders of the Sundaram Finance?

The top shareholders of Sundaram Finance include promoters, with M/s. India Motor Parts & Accessories Limited holding 2.61%, institutional investors owning 23.68% (including 19.0% by FIIs), and individual shareholders comprising 26.78% of the total shareholding. The highest public shareholder is Nalanda India Equity Fund Limited at 3.62%.

The top shareholders of Sundaram Finance include a mix of promoters, institutional investors, and individual shareholders. The majority shareholders are the promoters, with no pledged promoter holdings reported. The promoter with the highest holding is M/s. India Motor Parts & Accessories Limited, which holds 2.61%. <BR><BR>In terms of institutional investors, 22 mutual fund schemes collectively hold 4.68%, while foreign institutional investors (FIIs) own 19.0% of the shares, represented by 470 FIIs. The highest public shareholder is Nalanda India Equity Fund Limited, holding 3.62%. Additionally, individual investors account for 26.78% of the total shareholding.

When is the next results date for Sundaram Finance?

No Upcoming Board Meetings

What is the bonus history of the Sundaram Finance?

Sundaram Finance has a history of issuing bonus shares, with the most recent being a 1:1 bonus announced on December 13, 2012, and a prior 1:1 bonus on August 22, 2008. This reflects the company's consistent approach to rewarding its shareholders.

Sundaram Finance has a history of issuing bonuses to its shareholders. The most recent bonus was a 1:1 issue, which was announced with an ex-date of December 13, 2012, and the record date was December 14, 2012. Prior to that, the company also issued a 1:1 bonus on August 22, 2008, with a record date of August 25, 2008. This indicates a consistent approach to rewarding shareholders through bonus shares in the past.