BSE:590071

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Executive Summary

Sundaram Finance Limited provides a range of financial services in India.


Snowflake Analysis

Second-rate dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 590071 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

590071

-1.4%

IN Consumer Finance

-0.3%

IN Market


1 Year Return

-11.8%

590071

-2.6%

IN Consumer Finance

2.0%

IN Market

Return vs Industry: 590071 underperformed the Indian Consumer Finance industry which returned -1.8% over the past year.

Return vs Market: 590071 underperformed the Indian Market which returned 1.6% over the past year.


Shareholder returns

590071IndustryMarket
7 Day2.8%-1.4%-0.3%
30 Day-8.8%7.0%3.8%
90 Day4.1%36.4%19.7%
1 Year-11.1%-11.8%0.08%-2.6%3.9%2.0%
3 Year-25.2%-27.2%35.1%27.0%-0.6%-5.3%
5 Year-14.2%-17.8%170.9%147.1%27.0%17.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

18.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 590071 (₹1284.35) is trading above our estimate of fair value (₹332.4)

Significantly Below Fair Value: 590071 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 590071 is poor value based on its PE Ratio (18.3x) compared to the IN Consumer Finance industry average (11.1x).

PE vs Market: 590071 is poor value based on its PE Ratio (18.3x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 590071's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 590071 is overvalued based on its PB Ratio (2.1x) compared to the IN Consumer Finance industry average (0.5x).


Next Steps

Future Growth

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

31.4%

Forecasted Diversified Financials 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 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 performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 590071 has high quality earnings.

Growing Profit Margin: 590071's current net profit margins (34.2%) are lower than last year (58.2%).


Past Earnings Growth Analysis

Earnings Trend: 590071's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: 590071's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 590071 had negative earnings growth (-33.2%) over the past year, making it difficult to compare to the Consumer Finance industry average (-2.8%).


Return on Equity

High ROE: 590071's Return on Equity (10.2%) is considered low.


Next Steps

Financial Health

How is Sundaram Finance's financial position?


Financial Position Analysis

Short Term Liabilities: 590071's short term assets (₹384.1B) exceed its short term liabilities (₹54.9B).

Long Term Liabilities: 590071's short term assets (₹384.1B) exceed its long term liabilities (₹311.0B).


Debt to Equity History and Analysis

Debt Level: 590071's debt to equity ratio (375.4%) is considered high.

Reducing Debt: 590071's debt to equity ratio has reduced from 425.3% to 375.4% over the past 5 years.

Debt Coverage: 590071's debt is not well covered by operating cash flow (0.03%).

Interest Coverage: Insufficient data to determine if 590071's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

1.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 590071's dividend (1.01%) is higher than the bottom 25% of dividend payers in the Indian market (0.66%).

High Dividend: 590071's dividend (1.01%) is low compared to the top 25% of dividend payers in the Indian market (2.76%).


Stability and Growth of Payments

Stable Dividend: 590071's dividend payments have been volatile in the past 10 years.

Growing Dividend: 590071's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.5%), 590071'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?

4.3yrs

Average management tenure


CEO

Thiruvallur Srinivasaraghavan (65 yo)

no data

Tenure

₹50,948,000

Compensation

Mr. Thiruvallur Thattai Srinivasaraghavan serves as the Managing Director of Sundaram Finance Limited since 2003 and has been its Executive Director since February 1, 1998. Mr. Srinivasaraghavan has a vast ...


CEO Compensation Analysis

Compensation vs Market: Thiruvallur's total compensation ($USD677.39K) is about average for companies of similar size in the Indian market ($USD643.73K).

Compensation vs Earnings: Thiruvallur's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thiruvallur Srinivasaraghavan
MD & Directorno data₹50.95m1.02%
₹ 1.4b
M. Ramaswamy
Chief Financial Officer8.92yrs₹20.16m0.030%
₹ 42.6m
Rajesh Venkat
VP of Operations & Head of Western Regionno data₹6.50mno data
S. Srinivasan
Senior VP & Head of Corporate Financeno data₹5.90m0.090%
₹ 127.1m
V. Ananthanarayanan
Chief Information Officerno data₹7.30mno data
P. Viswanathan
Company Secretary & Compliance Officerno data₹12.59m0.031%
₹ 44.2m
Srinivasan Ravindran
Senior VP12.08yrs₹1.74m0.56%
₹ 801.5m
Ayalur Raju
Director of Operations & Director6.17yrs₹29.04m0.034%
₹ 47.9m
Harsha Viji
Deputy MD & Director9.92yrs₹39.67m1.52%
₹ 2.2b
K. SankaraKumar
Senior VP & Head of Distributionno data₹5.80mno data
D. Ravindran
Senior Vice President of Sundaram Infotech Solutionsno data₹5.90mno data
Rajiv Lochan
Whole Time Director & Director of Strategy3.75yrs₹1.41mno data

4.3yrs

Average Tenure

59yo

Average Age

Experienced Management: 590071's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thiruvallur Srinivasaraghavan
MD & Directorno data₹50.95m1.02%
₹ 1.4b
Srinivasan Ravindran
Senior VP12.08yrs₹1.74m0.56%
₹ 801.5m
Ayalur Raju
Director of Operations & Director6.17yrs₹29.04m0.034%
₹ 47.9m
Harsha Viji
Deputy MD & Director9.92yrs₹39.67m1.52%
₹ 2.2b
Rajiv Lochan
Whole Time Director & Director of Strategy3.75yrs₹1.41mno data
Pudugramam Venkatachalam
Independent Non-Executive Director9.58yrs₹1.49mno data
Santhanam Viji
Chairman of the Board15.17yrs₹1.00m2.41%
₹ 3.4b
Santhanam Ram
Non-Executive Director31.92yrs₹1.00m0.73%
₹ 1.0b
Shobhana Ramachandhran
Independent Non-Executive Director6.58yrs₹1.65m0.27%
₹ 385.6m
Sreenivasan Prasad
Independent Non-Executive Director11.83yrs₹2.05m0.0057%
₹ 8.0m
Seturaman Mahalingam
Independent Non-Executive Director6.25yrs₹1.46m0.0029%
₹ 4.1m
Ragavendra Rao
Additional Non-Executive & Independent Director1.33yrs₹985.00kno data

9.8yrs

Average Tenure

67yo

Average Age

Experienced Board: 590071's board of directors are considered experienced (9.8 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 Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sundaram Finance Limited
  • Ticker: 590071
  • Exchange: BSE
  • Founded: 1954
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹141.869b
  • Shares outstanding: 111.10m
  • Website: https://www.sundaramfinance.in

Location

  • Sundaram Finance Limited
  • 21, Patullos Road
  • Chennai
  • Tamil Nadu
  • 600002
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUNDARMFINNSEI (National Stock Exchange of India)YesEquity SharesININRJan 1998
590071BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 1998

Biography

Sundaram Finance Limited provides a range of financial services in India. The company accepts fixed, cumulative, and NRI deposits. It also offers finance for new and used cars, new and used commercial vehi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 12:48
End of Day Share Price2020/08/04 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.