NSEI:SUNDARMHLD

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Sundaram Finance Holdings

Executive Summary

Sundaram Finance Holdings Limited engages in business of investments, business processing, and support services to large and mid-sized firms in India, Australia, the United States, and the United Kingdom.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Sundaram Finance Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SUNDARMHLD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

SUNDARMHLD

1.5%

IN Auto Components

1.1%

IN Market


1 Year Return

-41.4%

SUNDARMHLD

-12.7%

IN Auto Components

-6.0%

IN Market

Return vs Industry: SUNDARMHLD underperformed the Indian Auto Components industry which returned -12.7% over the past year.

Return vs Market: SUNDARMHLD underperformed the Indian Market which returned -6% over the past year.


Shareholder returns

SUNDARMHLDIndustryMarket
7 Day0.5%1.5%1.1%
30 Day-0.2%7.7%6.2%
90 Day6.2%29.3%18.2%
1 Year-39.8%-41.4%-11.2%-12.7%-4.1%-6.0%
3 Yearn/a-33.4%-35.3%0.2%-4.5%
5 Yearn/a-7.9%-11.8%24.5%14.9%

Price Volatility Vs. Market

How volatile is Sundaram Finance Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sundaram Finance Holdings undervalued compared to its fair value and its price relative to the market?

9.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SUNDARMHLD (₹49.05) is trading above our estimate of fair value (₹12.56)

Significantly Below Fair Value: SUNDARMHLD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SUNDARMHLD is good value based on its PE Ratio (9.5x) compared to the IN Auto Components industry average (15.2x).

PE vs Market: SUNDARMHLD is good value based on its PE Ratio (9.5x) compared to the Indian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SUNDARMHLD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SUNDARMHLD is good value based on its PB Ratio (0.4x) compared to the IN Auto Components industry average (1.1x).


Next Steps

Future Growth

How is Sundaram Finance Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.6%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sundaram Finance Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Sundaram Finance Holdings performed over the past 5 years?

32.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUNDARMHLD has high quality earnings.

Growing Profit Margin: SUNDARMHLD's current net profit margins (83%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: SUNDARMHLD's earnings have grown significantly by 32.5% per year over the past 5 years.

Accelerating Growth: SUNDARMHLD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SUNDARMHLD had negative earnings growth (-43.1%) over the past year, making it difficult to compare to the Auto Components industry average (-29.8%).


Return on Equity

High ROE: SUNDARMHLD's Return on Equity (4.2%) is considered low.


Next Steps

Financial Health

How is Sundaram Finance Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SUNDARMHLD's short term assets (₹12.1B) exceed its short term liabilities (₹36.9M).

Long Term Liabilities: SUNDARMHLD's short term assets (₹12.1B) exceed its long term liabilities (₹611.3M).


Debt to Equity History and Analysis

Debt Level: SUNDARMHLD is debt free.

Reducing Debt: SUNDARMHLD had no debt 5 years ago.

Debt Coverage: SUNDARMHLD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SUNDARMHLD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Sundaram Finance Holdings's current dividend yield, its reliability and sustainability?

2.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SUNDARMHLD's dividend (2.04%) is higher than the bottom 25% of dividend payers in the Indian market (0.69%).

High Dividend: SUNDARMHLD's dividend (2.04%) is low compared to the top 25% of dividend payers in the Indian market (2.73%).


Stability and Growth of Payments

Stable Dividend: SUNDARMHLD has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SUNDARMHLD has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.2%), SUNDARMHLD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Paramesh Krishnaier (71yo)

2.42yrs

Tenure

₹5,000,000

Compensation

Mr. Paramesh Krishnaier serves as an Executive Director of Sundaram Finance Limited and served as its Senior Vice President of Operations. Mr. Krishnaier has been a Director of Sundaram Business Service Lt ...


CEO Compensation Analysis

Compensation vs Market: Paramesh's total compensation ($USD66.52K) is above average for companies of similar size in the Indian market ($USD48.72K).

Compensation vs Earnings: Paramesh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paramesh Krishnaier
Chief Executive Officer2.42yrs₹5.00m0.0042% 314.3k
V. Vaasen
Chief Financial Officer1.67yrs₹2.94m0.000020% 1.5k
P. Srikant
Secretary & Compliance Officer2.92yrs₹2.82mno data
Rajesh Singh
Assistant General Manager of Operationsno datano datano data
V. Narasimhan
GM and Head of Learning & Developmentno datano datano data

2.4yrs

Average Tenure

52yo

Average Age

Experienced Management: SUNDARMHLD's management team is considered experienced (2.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sundaram Finance Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sundaram Finance Holdings Limited
  • Ticker: SUNDARMHLD
  • Exchange: NSEI
  • Founded: 1993
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: ₹7.412b
  • Shares outstanding: 151.10m
  • Website: https://www.sundaramholdings.in

Location

  • Sundaram Finance Holdings Limited
  • No. 21, Patullos Road
  • Chennai
  • Tamil Nadu
  • 600002
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUNDARMHLDNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2018

Biography

Sundaram Finance Holdings Limited engages in business of investments, business processing, and support services to large and mid-sized firms in India, Australia, the United States, and the United Kingdom. The company primarily has investments in automotive business. It also offers outsourcing services. In addition, the company engages in shared services business comprising transaction processing, accounts payable processing, tele-calling, training, learning, and development. The company was formerly known as Sundaram Finance Investments Limited and changed its name to Sundaram Finance Holdings Limited in March 2017. Sundaram Finance Holdings Limited was incorporated in 1993 and is based in Chennai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 12:38
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.