BSE:590071

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record with mediocre balance sheet.

Risks

  • Sundaram Finance is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-0.7%

BSE:590071

-3.6%

IN Consumer Finance

-2.1%

IN Market


1 Year Return

3.5%

BSE:590071

-3.2%

IN Consumer Finance

-14.7%

IN Market

590071 outperformed the Consumer Finance industry which returned -3.1% over the past year.

590071 outperformed the Market in India which returned -14.6% over the past year.


Share holder returns

590071IndustryMarket
7 Day-0.7%-3.6%-2.1%
30 Day-4.3%1.9%-3.9%
90 Day4.2%-10.2%-10.1%
1 Year4.6%3.5%-2.5%-3.2%-12.9%-14.7%
3 Year8.9%6.1%59.3%56.0%17.7%11.5%
5 Year72.4%65.4%233.9%218.2%35.4%22.5%

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 based on future cash flows and its price relative to the stock market?

14.6x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Sundaram Finance's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Sundaram Finance's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Sundaram Finance is good value based on earnings compared to the IN Consumer Finance industry average.

Sundaram Finance is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Sundaram Finance earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Sundaram Finance is overvalued based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

How is Sundaram Finance expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

-0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sundaram Finance's revenue is expected to grow by 17.2% yearly, however this is not considered high growth (20% yearly).

Sundaram Finance's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Sundaram Finance's revenue growth is expected to exceed the India market average.

Sundaram Finance's earnings are expected to decrease over the next 1-3 years, this is below the India market average.

Sundaram Finance's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Sundaram Finance is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Sundaram Finance performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sundaram Finance's year on year earnings growth rate has been positive over the past 5 years.

Sundaram Finance's 1-year earnings growth exceeds its 5-year average (37.3% vs 17.9%)

Sundaram Finance's earnings growth has exceeded the IN Consumer Finance industry average in the past year (37.3% vs 15%).


Return on Equity

Sundaram Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sundaram Finance used its assets more efficiently than the IN Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Sundaram Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Sundaram Finance's financial position?


Financial Position Analysis

Sundaram Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sundaram Finance's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Sundaram Finance's level of debt (274.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (442.1% vs 274.4% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on Sundaram Finance's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

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

0.89%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sundaram Finance's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.65%).

Sundaram Finance's dividend is below the markets top 25% of dividend payers in India (2.64%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (8.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Sundaram Finance's salary, the management and board of directors tenure and is there insider trading?

8.6yrs

Average board tenure


CEO

Thiruvallur Srinivasaraghavan (64yo)

0.0yrs

Tenure

₹49,114,000

Compensation

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


CEO Compensation Analysis

Thiruvallur's remuneration is about average for companies of similar size in India.

Thiruvallur's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

8.6yrs

Average Tenure

69.5yo

Average Age

The tenure for the Sundaram Finance board of directors is about average.


Insider Trading

Sundaram Finance individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹4,027,20514 Jun 19
Lily Vijayaraghavan
EntityIndividual
Shares2,619
Max Price₹1,647.71
Sell₹3,392,29513 Jun 19
Lily Vijayaraghavan
EntityIndividual
Shares2,136
Max Price₹1,588.15
Sell₹5,514,12812 Jun 19
Lily Vijayaraghavan
EntityIndividual
Shares3,364
Max Price₹1,639.16
Sell₹4,093,30111 Jun 19
Lily Vijayaraghavan
EntityIndividual
Shares2,481
Max Price₹1,649.86
Sell₹358,40827 Sep 18
Barath Rengarajan
EntityIndividual
Shares236
Max Price₹1,518.68
Sell₹2,394,17324 Sep 18
Barath Rengarajan
EntityIndividual
Shares1,539
Max Price₹1,555.67
Buy₹972,50005 Sep 18
Lakshmi Vijayaraghavan
EntityIndividual
Shares600
Max Price₹1,620.83
Sell₹65,990,84005 Sep 18
Shobhana Ramachandhran
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares42,720
Max Price₹1,544.73

Ownership Breakdown


Management Team

  • Thiruvallur Srinivasaraghavan (64yo)

    MD & Director

    • Tenure: 0.0yrs
    • Compensation: ₹49.11m
  • Srinivasan Ravindran (68yo)

    Senior VP

    • Tenure: 11.1yrs
    • Compensation: ₹1.70m
  • M. Ramaswamy (56yo)

    Chief Financial Officer

    • Tenure: 7.9yrs
    • Compensation: ₹20.75m
  • Ayalur Raju (60yo)

    Director of Operations & Director

    • Tenure: 5.2yrs
    • Compensation: ₹27.96m
  • S. Srinivasan (57yo)

    Senior VP & Head of Corporate Finance

    • Tenure: 0.0yrs
  • P. Viswanathan (81yo)

    Company Secretary & Compliance Officer

    • Tenure: 0.0yrs
    • Compensation: ₹13.20m
  • Harsha Viji (44yo)

    Deputy MD & Director

    • Tenure: 8.9yrs
    • Compensation: ₹38.06m
  • Rajesh Venkat (44yo)

    VP of Operations & Deputy Region Head of West

    • Tenure: 0.0yrs
  • S. Sridhar (50yo)

    VP & Head of Treasury

    • Tenure: 0.0yrs
  • V. Ananthanarayanan (56yo)

    Chief Information Officer

    • Tenure: 0.0yrs

Board Members

  • Pudugramam Venkatachalam (75yo)

    Independent Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: ₹1.59m
  • Santhanam Viji (73yo)

    Chairman of the Board

    • Tenure: 14.2yrs
    • Compensation: ₹1.05m
  • Thiruvallur Srinivasaraghavan (64yo)

    MD & Director

    • Tenure: 0.0yrs
    • Compensation: ₹49.11m
  • Srinivasan Ravindran (68yo)

    Senior VP

    • Tenure: 11.1yrs
    • Compensation: ₹1.70m
  • Ayalur Raju (60yo)

    Director of Operations & Director

    • Tenure: 5.2yrs
    • Compensation: ₹27.96m
  • Shobhana Ramachandhran (59yo)

    Independent Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: ₹1.68m
  • Harsha Viji (44yo)

    Deputy MD & Director

    • Tenure: 8.9yrs
    • Compensation: ₹38.06m
  • Sreenivasan Prasad (71yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: ₹2.08m
  • Santhanam Ram (79yo)

    Non-Executive Director

    • Tenure: 0.0yrs
    • Compensation: ₹1.05m
  • Seturaman Mahalingam (71yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: ₹1.46m

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: ₹169.322b
  • 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 Analysis2019/08/24 12:48
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.