NSEI:SUNDARMFIN

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Second-rate dividend payer with poor track record.


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: SUNDARMFIN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.3%

SUNDARMFIN

-10.6%

IN Consumer Finance

-2.9%

IN Market


1 Year Return

-23.6%

SUNDARMFIN

-26.9%

IN Consumer Finance

-29.3%

IN Market

Return vs Industry: SUNDARMFIN exceeded the Indian Consumer Finance industry which returned -26.9% over the past year.

Return vs Market: SUNDARMFIN exceeded the Indian Market which returned -29.3% over the past year.


Shareholder returns

SUNDARMFINIndustryMarket
7 Day9.3%-10.6%-2.9%
30 Day-24.6%-41.5%-23.7%
90 Day-27.0%-39.0%-28.6%
1 Year-22.6%-23.6%-26.2%-26.9%-27.9%-29.3%
3 Year-22.8%-24.9%24.0%21.2%-15.4%-20.0%
5 Year-19.7%-23.2%104.9%95.5%-3.3%-8.3%

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

Valuation

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

11.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SUNDARMFIN (₹1190.75) is trading above our estimate of fair value (₹527.22)

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


Price To Earnings Ratio

PE vs Industry: SUNDARMFIN is poor value based on its PE Ratio (11.3x) compared to the Consumer Finance industry average (10.4x).

PE vs Market: SUNDARMFIN is poor value based on its PE Ratio (11.3x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SUNDARMFIN is overvalued based on its PB Ratio (2.1x) compared to the IN Consumer Finance industry average (0.6x).


Next Steps

Future Growth

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

26.0%

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?

16.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUNDARMFIN has a large one-off gain of ₹4.7B impacting its December 31 2019 financial results.

Growing Profit Margin: SUNDARMFIN's current net profit margins (-98.9%) are lower than last year (38.5%).


Past Earnings Growth Analysis

Earnings Trend: SUNDARMFIN's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: SUNDARMFIN's earnings growth over the past year (9.9%) is below its 5-year average (16.4% per year).

Earnings vs Industry: SUNDARMFIN earnings growth over the past year (9.9%) underperformed the Consumer Finance industry 15.6%.


Return on Equity

High ROE: SUNDARMFIN's Return on Equity (15.2%) is considered low.


Next Steps

Financial Health

How is Sundaram Finance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SUNDARMFIN has a low level of unsold assets or inventory.

Debt Coverage by Assets: SUNDARMFIN's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: SUNDARMFIN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SUNDARMFIN has a sufficient allowance for bad loans.

Low Risk Liabilities: SUNDARMFIN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SUNDARMFIN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SUNDARMFIN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SUNDARMFIN has an appropriate level of bad loans.


Next Steps

Dividend

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

1.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SUNDARMFIN's dividend (1.47%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: SUNDARMFIN's dividend (1.47%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.9%), SUNDARMFIN's dividend payments are thoroughly 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?

9.2yrs

Average board tenure


CEO

Thiruvallur Srinivasaraghavan (64yo)

no data

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

Compensation vs Market: Thiruvallur's total compensation ($USD651.61K) is about average for companies of similar size in the Indian market ($USD651.61K).

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


Board Members

NamePositionTenureCompensationOwnership
Thiruvallur Srinivasaraghavan
MD & Directorno data₹49.11m0.99% 1.3b
Srinivasan Ravindran
Senior VP11.67yrs₹1.70m0.50% 666.3m
Ayalur Raju
Director of Operations & Director5.75yrs₹27.96m0.032% 41.7m
Harsha Viji
Deputy MD & Director9.5yrs₹38.06m1.52% 2.0b
Pudugramam Venkatachalam
Independent Non-Executive Director9.17yrs₹1.59mno data
Santhanam Viji
Chairman of the Board14.75yrs₹1.05m2.41% 3.2b
Shobhana Ramachandhran
Independent Non-Executive Director6.17yrs₹1.68m0.27% 359.6m
Sreenivasan Prasad
Independent Non-Executive Director3yrs₹2.08m0.0057% 7.5m
Santhanam Ram
Non-Executive Directorno data₹1.05m0.73% 966.6m
Seturaman Mahalingam
Independent Non-Executive Director5.83yrs₹1.46m0.0029% 3.8m

9.2yrs

Average Tenure

69.5yo

Average Age

Experienced Board: SUNDARMFIN's board of directors are considered experienced (9.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SUNDARMFIN insiders have sold more shares than they have bought 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: SUNDARMFIN
  • Exchange: NSEI
  • Founded: 1954
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹132.297b
  • 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 vehicles, and new and used construction equipment; diesel finance for commercial vehicle operators and companies; tire and insurance finance; finance for new/used tractors, harvesters, and farm implements; working capital, enterprise business, and machinery term loans, as well as channel finance; housing finance; and leasing services. In addition, the company distributes a range of financial products, such as mutual funds, general insurance, etc.; and provides information technology, and business processing and support services. Further, it offers a suite of investment management services, which include financial planning, asset allocation and execution, portfolio management, tax management, risk management, and estate management; and life insurance products comprising child, pension, whole-life, term, and investment plans. The company operates through a network of 658 branches. Sundaram Finance Limited was founded in 1954 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 Analysis2020/03/30 12:55
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.