Sundaram Finance

Why is Sundaram Finance Ltd falling/rising?

As of 25-Aug, Sundaram Finance Ltd's stock price is rising to 4,519.35, driven by strong long-term fundamentals and positive quarterly results, despite a decline in investor participation. The stock's fair valuation and high institutional holdings further support its upward movement.

As of 25-Aug, Sundaram Finance Ltd's stock price is rising, currently at 4,519.35, with a change of 11.7 (0.26%) upward. This increase can be attributed to several factors. Despite a recent decline in investor participation, with delivery volume falling by 52.32% against the 5-day average, the stock demonstrates strong long-term fundamental strength, evidenced by an average Return on Equity (ROE) of 13.73%. <BR><BR>The company reported positive results for the quarter ending June 26, achieving its highest operating cash flow at Rs -5,004.67 Cr and net sales at Rs 2,644.13 Cr. Additionally, the stock's fair valuation, indicated by a Price to Book Value of 3.4, suggests that it is trading at a premium compared to its peers' average historical valuations. Although the stock has experienced a year-to-date decline of 14.42%, its profits have risen by 18.6%, which contributes to a favorable PEG ratio of 1.2. Furthermore, high institutional holdings at 26.59% indicate confidence from investors with substantial analytical resources, supporting the stock's upward movement. <BR><BR>Overall, these positive indicators, despite some short-term challenges, contribute to the stock's current rise.

Which are the latest news on Sundaram Finance?

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, Srivats Ram. This diverse team brings extensive experience to the company.

The management team of Sundaram Finance includes the following key members:<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 features 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 management team brings a wealth of experience to the company.

What does Sundaram Finance do?

Sundaram Finance Ltd is a mid-cap Non-Banking Financial Company (NBFC) that primarily finances commercial vehicles, cars, and construction equipment. As of June 2026, it reported net sales of ₹2,644 Cr and a net profit of ₹636 Cr, with a market cap of ₹50,175 Cr.

Overview: <BR>Sundaram Finance Ltd is a Non-Banking Financial Company (NBFC) in the mid-cap category, primarily engaged in financing commercial vehicles, cars, construction equipment, and other vehicles in the retail segment.<BR><BR>History: <BR>Sundaram Finance Limited 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 June 2026.<BR><BR>Financial Snapshot: <BR>Net Sales: 2,644 Cr (Quarterly Results - Jun 2026) <BR>Net Profit: 636 Cr (Quarterly Results - Jun 2026) <BR>Market Cap: INR 50,175 Cr (Mid Cap)<BR><BR>Key Metrics: <BR>P/E: 22.00 <BR>Industry P/E: 21 <BR>Dividend Yield: 0.89% <BR>Debt-Equity: 4.68 <BR>Return on Equity: 14.21% <BR>Price to Book: 3.37 <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

Who are the peers of the Sundaram Finance?

Peers of Sundaram Finance include Aditya Birla Capital, L&T Finance, SBI Cards, HDB Financial Services, M&M Financial Services, Authum Investments, Poonawalla Finance, Tata Investment Corporation, and Manappuram Finance. Management risk varies from excellent at SBI Cards and Sundaram Finance to below average at Tata Investment Corporation, with L&T Finance showing the highest 1-year return at 55.37% and SBI Cards the lowest at -18.60%.

Peers: The peers of Sundaram Finance are Aditya Birla Cap, L&T Finance Ltd, SBI Cards, HDB FINANC SER, M & M Fin. Serv., Authum Invest., Poonawalla Fin, Tata Inv.Corpn., and Manappuram Fin.<BR><BR>Quality Snapshot: Excellent management risk is observed at SBI Cards and Sundaram Finance, while Good management risk is found at Aditya Birla Cap, HDB FINANC SER, M & M Fin. Serv., Manappuram Fin., and the rest. Average management risk is present at L&T Finance Ltd, Authum Invest., Poonawalla Fin, and Tata Inv.Corpn., while Below Average management risk is noted at Tata Inv.Corpn. Growth is Excellent at M & M Fin. Serv., Average at SBI Cards, Sundaram Finance, and Poonawalla Fin, while Good growth is observed at Aditya Birla Cap, HDB FINANC SER, and the rest. Below Average growth is found at L&T Finance Ltd, Authum Invest., and Manappuram Fin. Capital Structure is Excellent at Aditya Birla Cap, L&T Finance Ltd, SBI Cards, M & M Fin. Serv., Authum Invest., Poonawalla Fin, Tata Inv.Corpn., and Manappuram Fin., while Good capital structure is noted at HDB FINANC SER, and the rest.<BR><BR>Return Snapshot: The peer with the highest 1-year return is L&T Finance Ltd at 55.37%, while the lowest is SBI Cards at -18.60%. Sundaram Finance's 1-year return is 1.71%, which is higher than SBI Cards but lower than L&T Finance Ltd. Additionally, the six-month returns for SBI Cards, HDB FINANC SER, and Tata Inv.Corpn. are negative.

How big is Sundaram Finance?

As of 14th August, Sundaram Finance Ltd has a market capitalization of 49,624.54 Cr, with recent net sales of 10,104.09 Cr and a net profit of 2,219.84 Cr. The company reported shareholder's funds of 14,893.65 Cr and total assets of 85,795.41 Cr for the annual period ending in March 2026.

As of 14th August, Sundaram Finance Ltd has a market capitalization of 49,624.54 Cr, categorizing it as a Mid Cap company.<BR><BR>In the latest four quarters, Sundaram Finance reported Net Sales of 10,104.09 Cr and a Net Profit of 2,219.84 Cr.<BR><BR>For the latest annual period ending in March 2026, the company reported Shareholder's Funds of 14,893.65 Cr and Total Assets of 85,795.41 Cr.

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?

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.