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Sundaram Finance

NSEI:SUNDARMFIN
Snowflake Description

Average dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SUNDARMFIN
NSEI
₹164B
Market Cap
  1. Home
  2. IN
  3. Diversified Financials
Company description

Sundaram Finance Limited provides a range of financial services in India. The last earnings update was 337 days ago. More info.


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SUNDARMFIN Share Price and Events
7 Day Returns
4.7%
NSEI:SUNDARMFIN
6.7%
IN Consumer Finance
4.1%
IN Market
1 Year Returns
-15.9%
NSEI:SUNDARMFIN
18.4%
IN Consumer Finance
0.1%
IN Market
SUNDARMFIN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sundaram Finance (SUNDARMFIN) 4.7% 1% 2.7% -15.9% 5.3% 65.2%
IN Consumer Finance 6.7% 6.1% 21.1% 18.4% 113.5% 270.5%
IN Market 4.1% -0.5% 7.6% 0.1% 35.2% 47.8%
1 Year Return vs Industry and Market
  • SUNDARMFIN underperformed the Consumer Finance industry which returned 18.4% over the past year.
  • SUNDARMFIN underperformed the Market in India which returned 0.1% over the past year.
Price Volatility
SUNDARMFIN
Industry
5yr Volatility vs Market

Value

 Is Sundaram Finance undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sundaram Finance to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sundaram Finance.

NSEI:SUNDARMFIN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= ₹487.74 * 13.9%
₹67.81
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. ₹487.74
Discount Rate (Cost of Equity) See below 18.4%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:SUNDARMFIN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.721 (1 + (1- 35%) (141.42%))
1.257
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.26
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.257 * 8.6%)
18.36%

Discounted Cash Flow Calculation for NSEI:SUNDARMFIN using Excess Returns Model Model

The calculations below outline how an intrinsic value for Sundaram Finance is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NSEI:SUNDARMFIN Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.9% – 18.36%) * ₹487.74)
₹-21.73
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ₹-21.73 / (18.36% - 7.55%)
₹-201.08
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ₹487.74 + ₹-201.08
₹286.66
NSEI:SUNDARMFIN Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹286.66
Current discount Discount to share price of ₹1,472.30
= -1 x (₹1,472.30 - ₹286.66) / ₹286.66
-413.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Sundaram Finance is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sundaram Finance's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sundaram Finance's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:SUNDARMFIN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in INR ₹64.04
NSEI:SUNDARMFIN Share Price ** NSEI (2019-05-24) in INR ₹1472.3
India Consumer Finance Industry PE Ratio Median Figure of 70 Publicly-Listed Consumer Finance Companies 18.95x
India Market PE Ratio Median Figure of 2,781 Publicly-Listed Companies 15.78x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sundaram Finance.

NSEI:SUNDARMFIN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:SUNDARMFIN Share Price ÷ EPS (both in INR)

= 1472.3 ÷ 64.04

22.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sundaram Finance is overvalued 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
Does Sundaram Finance's expected growth come at a high price?
Raw Data
NSEI:SUNDARMFIN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.99x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
5.7%per year
India Consumer Finance Industry PEG Ratio Median Figure of 14 Publicly-Listed Consumer Finance Companies 0.94x
India Market PEG Ratio Median Figure of 559 Publicly-Listed Companies 1.34x

*Line of best fit is calculated by linear regression .

NSEI:SUNDARMFIN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.99x ÷ 5.7%

4.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sundaram Finance is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Sundaram Finance's assets?
Raw Data
NSEI:SUNDARMFIN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in INR ₹441.24
NSEI:SUNDARMFIN Share Price * NSEI (2019-05-24) in INR ₹1472.3
India Consumer Finance Industry PB Ratio Median Figure of 83 Publicly-Listed Consumer Finance Companies 0.87x
India Market PB Ratio Median Figure of 3,644 Publicly-Listed Companies 1.06x
NSEI:SUNDARMFIN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:SUNDARMFIN Share Price ÷ Book Value per Share (both in INR)

= 1472.3 ÷ 441.24

3.34x

* Primary Listing of Sundaram Finance.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sundaram Finance is overvalued based on assets compared to the IN Consumer Finance industry average.
X
Value checks
We assess Sundaram Finance's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. Sundaram Finance has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sundaram Finance expected to grow at an attractive rate?
  • Sundaram Finance's earnings growth is positive but not above the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Sundaram Finance's earnings growth is positive but not above the India market average.
  • Sundaram Finance's revenues are expected to decrease over the next 1-3 years, this is below the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:SUNDARMFIN Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:SUNDARMFIN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 5.7%
NSEI:SUNDARMFIN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts -17.1%
India Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 16.9%
India Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 18.7%
India Market Earnings Growth Rate Market Cap Weighted Average 16.9%
India Market Revenue Growth Rate Market Cap Weighted Average 10.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:SUNDARMFIN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:SUNDARMFIN Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 20,619 8,521 1
2021-03-31 18,335 7,334 1
2020-03-31 17,581 6,710 2
2019-03-31 15,365 6,063 1
NSEI:SUNDARMFIN Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-03-31 41,541 -29,894 7,115
2017-03-31 37,942 -9,647 6,835
2016-03-31 31,237 3,103 5,832

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sundaram Finance's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
  • Sundaram Finance's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:SUNDARMFIN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Sundaram Finance Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:SUNDARMFIN Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 76.70 76.70 76.70 1.00
2021-03-31 66.00 66.00 66.00 1.00
2020-03-31 60.40 62.20 58.60 2.00
2019-03-31 54.60 54.60 54.60 1.00
NSEI:SUNDARMFIN Past Financials Data
Date (Data in INR Millions) EPS *
2018-03-31 64.04
2017-03-31 61.52
2016-03-31 52.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sundaram Finance is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Sundaram Finance's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sundaram Finance has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Sundaram Finance performed over the past 5 years?

  • Sundaram Finance's last earnings update was 337 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sundaram Finance's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if Sundaram Finance's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Sundaram Finance's 1-year earnings growth to the 5-year average due to insufficient past data.
  • Sundaram Finance's earnings growth has not exceeded the IN Consumer Finance industry average in the past year (4.1% vs 22.6%).
Earnings and Revenue History
Sundaram Finance's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sundaram Finance Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:SUNDARMFIN Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 41,540.86 7,115.36 8,181.37
2017-03-31 37,942.25 6,834.80 7,324.45
2016-03-31 31,237.23 5,831.75 6,842.89
2015-03-31 24,075.84 5,758.82 5,308.20
2014-03-31 23,868.05 5,810.56 4,924.26
2013-03-31 21,894.87 5,639.69 4,357.01

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sundaram Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sundaram Finance used its assets less efficiently than the IN Consumer Finance industry average last year based on Return on Assets.
  • 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.
X
Past performance checks
We assess Sundaram Finance's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sundaram Finance has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Sundaram Finance's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sundaram Finance's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Sundaram Finance's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sundaram Finance Company Filings, last reported 1 year ago.

NSEI:SUNDARMFIN Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 57,234.93 231,326.65 13,440.96
2017-03-31 54,900.86 186,356.17 10,136.15
2016-03-31 47,987.46 172,941.55 9,595.27
2015-03-31 41,592.89 177,085.07 10,884.08
2014-03-31 34,577.06 155,144.04 12,818.69
2013-03-31 28,923.29 147,892.72 13,376.89
  • Sundaram Finance's level of debt (404.2%) 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 (511.1% vs 404.2% 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.
X
Financial health checks
We assess Sundaram Finance's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sundaram Finance has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.82%
Current annual income from Sundaram Finance dividends. Estimated to be 0.92% next year.
If you bought ₹2,000 of Sundaram Finance shares you are expected to receive ₹16 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sundaram Finance's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.53%).
  • Sundaram Finance's dividend is below the markets top 25% of dividend payers in India (1.98%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:SUNDARMFIN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
India Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 27 Stocks 0.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1407 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:SUNDARMFIN Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 14.00 1.00
2021-03-31 13.50 1.00
2020-03-31 13.00 1.00
2019-03-31 12.50 1.00
NSEI:SUNDARMFIN Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-01-31 12.000 0.812
2018-07-20 12.000 0.819
2018-04-27 11.500 0.679
2017-05-30 11.500 0.671
2017-02-17 11.500 0.749
2016-05-30 11.000 0.812
2016-03-08 10.000 0.773
2016-01-29 10.500 0.852
2015-05-29 12.000 0.815
2014-05-26 10.000 0.830
2013-05-29 9.000 1.564
2013-02-08 12.500 2.477
2012-06-20 8.000 1.874
2012-05-28 8.000 2.429
2012-01-27 7.500 2.361
2011-05-31 7.000 2.652
2011-05-30 7.000 2.841
2011-01-28 7.000 2.818
2010-05-31 5.000 1.848
2010-02-04 4.250 2.258
2009-05-29 3.250 2.117

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Sundaram Finance's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.9x coverage).
X
Income/ dividend checks
We assess Sundaram Finance's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sundaram Finance afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sundaram Finance has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
T. Srinivasaraghavan
COMPENSATION ₹47,573,000
AGE 63
CEO Bio

Mr. T. T. Srinivasaraghavan serves as the Managing Director and Executive Director of Sundaram Finance Limited. Mr. Srinivasaraghavan has a vast experience in the Banking and Finance sectors. He serves as Chairman at Sundaram Finance Holdings Limited. Mr. Srinivasaraghavan served as Joint Managing Director of Sundaram Finance Ltd. He serves as an Executive Director of Sundaram Infotech Solutions Ltd and Sundaram BNP Paribas Asset Management Co., Ltd. Mr. Srinivasaraghavan serves as Chairman of Infreight Logistics Solutions Ltd. He serves a Non-Executive Director of Sundaram BNP Paribas Home Finance Limited. He serves as Director of Sundaram Business Service Ltd. He serves as President of International Finance & Leasing Association, United Kingdom. He serves as Director of Royal Sundaram Alliance Insurance Company Limited. He holds B.Com. and M.B.A. in Finance Degree.

CEO Compensation
  • T.'s compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • T.'s remuneration is about average for companies of similar size in India.
Management Team

T. Srinivasaraghavan

TITLE
MD & Director
COMPENSATION
₹48M
AGE
63

M. Ramaswamy

TITLE
CFO & Director
COMPENSATION
₹16M
AGE
55
TENURE
7.7 yrs

Rajesh Venkat

TITLE
Vice President of Operations
AGE
43

S. Srinivasan

TITLE
Senior VP & Head of Corporate Finance
AGE
56

V. Ananthanarayanan

TITLE
Chief Information Officer
AGE
55

P. Viswanathan

TITLE
Company Secretary & Compliance Officer
COMPENSATION
₹10M
AGE
80

S. Ravindran

TITLE
Senior VP
COMPENSATION
₹2M
AGE
67

Harsha Viji

TITLE
Deputy MD & Director
COMPENSATION
₹35M
AGE
43
TENURE
2.8 yrs

K. SankaraKumar

TITLE
VP & Head of Distribution
AGE
57

A. Raju

TITLE
Director of Operations & Director
COMPENSATION
₹24M
AGE
59
Board of Directors Tenure

Average tenure and age of the Sundaram Finance board of directors in years:

5.3
Average Tenure
65
Average Age
  • The tenure for the Sundaram Finance board of directors is about average.
Board of Directors

Sriram Viji

TITLE
Chairman of the Board
COMPENSATION
₹1M
AGE
72
TENURE
13.9 yrs

T. Srinivasaraghavan

TITLE
MD & Director
COMPENSATION
₹48M
AGE
63

M. Ramaswamy

TITLE
CFO & Director
COMPENSATION
₹16M
AGE
55

S. Ravindran

TITLE
Senior VP
COMPENSATION
₹2M
AGE
67

Harsha Viji

TITLE
Deputy MD & Director
COMPENSATION
₹35M
AGE
43
TENURE
8.7 yrs

A. Raju

TITLE
Director of Operations & Director
COMPENSATION
₹24M
AGE
59
TENURE
4.9 yrs

S. Prasad

TITLE
Independent Non-Executive Director
COMPENSATION
₹2M
AGE
70
TENURE
2.3 yrs

Pudugramam Venkatachalam

TITLE
Independent Non-Executive Director
COMPENSATION
₹2M
AGE
74
TENURE
8.3 yrs

Shobhana Ramachandhran

TITLE
Independent Non-Executive Director
COMPENSATION
₹2M
AGE
58
TENURE
5.3 yrs

S. Mahalingam

TITLE
Independent Non-Executive Director
COMPENSATION
₹1M
AGE
70
TENURE
5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
27. Sep 18 Sell Barath Rengarajan Individual 26. Sep 18 26. Sep 18 -236 ₹1,518.68 ₹-358,408
24. Sep 18 Sell Barath Rengarajan Individual 21. Sep 18 21. Sep 18 -1,539 ₹1,555.67 ₹-2,394,173
05. Sep 18 Buy Lakshmi Vijayaraghavan Individual 03. Sep 18 03. Sep 18 600 ₹1,620.83 ₹972,500
05. Sep 18 Sell Shobhana Ramachandhran Individual 04. Sep 18 04. Sep 18 -42,720 ₹1,544.73 ₹-65,990,840
27. Jun 18 Sell Lily Vijayaraghavan Individual 25. Jun 18 25. Jun 18 -1,300 ₹1,688.83 ₹-2,195,473
25. Jun 18 Sell Lily Vijayaraghavan Individual 21. Jun 18 21. Jun 18 -5,000 ₹1,760.59 ₹-8,802,947
21. Jun 18 Sell Lily Vijayaraghavan Individual 20. Jun 18 20. Jun 18 -1,300 ₹1,733.18 ₹-2,253,138
X
Management checks
We assess Sundaram Finance's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sundaram Finance has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Tempted To Sell Sundaram Finance Limited (NSE:SUNDARMFIN) At Its Current PE Ratio?

Sundaram Finance Limited (NSE:SUNDARMFIN) is trading with a trailing P/E of 23.4x, which is higher than the industry average of 22.8x. … While SUNDARMFIN might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … I will break down what the P/E ratio is, how to interpret it and what to watch out for

Simply Wall St -

Is Sundaram Finance Limited (NSE:SUNDARMFIN) Undervalued?

This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … A question to answer is whether Sundaram Finance's current trading price of ₹1626.35 reflective of the actual value of the? … Let’s take a look at Sundaram Finance’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Sundaram Finance Limited's (NSE:SUNDARMFIN) Earnings Grew 17.20%, Did It Beat Long-Term Trend?

After reading Sundaram Finance Limited's (NSEI:SUNDARMFIN) most recent earnings announcement (31 March 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … Check out our latest analysis for Sundaram Finance How SUNDARMFIN fared against its long-term earnings performance and its industry I like to use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … This suggests that any uplift the industry is deriving benefit from, Sundaram Finance has not been able to realize the gains unlike its average peer.What does this mean?

Simply Wall St -

Should You Sell Sundaram Finance Limited (NSE:SUNDARMFIN) At This PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SUNDARMFIN Price per share = ₹1750.45 Earnings per share = ₹61.517 ∴ Price-Earnings Ratio = ₹1750.45 ÷ ₹61.517 = 28.5x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … SUNDARMFIN’s P/E of 28.5x is higher than its industry peers (25.7x), which implies that each dollar of SUNDARMFIN’s earnings is being overvalued by investors. … Alternatively, if you inadvertently compared riskier firms with SUNDARMFIN, SUNDARMFIN’s P/E would again be higher since investors would reward SUNDARMFIN’s lower risk with a higher price as well.

Simply Wall St -

At INR1642.2, Is Sundaram Finance Limited (NSE:SUNDARMFIN) A Buy?

The stock’s ratio of 26.55x is currently trading slightly In addition to this, it seems like Sundaram Finance’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. … SUNDARMFIN’s future growth appears to have been factored into the current share price, with shares trading around its fair value. … Will you have enough confidence to invest in the company should the price drop below its fair value?

Simply Wall St -

Is Now The Right Time To Invest In Financials And Sundaram Finance Limited (NSE:SUNDARMFIN)?

Sundaram Finance Limited (NSEI:SUNDARMFIN), a ₹185.49B mid-cap, is a consumer finance company operating in an industry, which has recently been facing serious existential threats resulting from potential disintermediation and disruption from new technology. … As a future industry laggard in growth, Sundaram Finance may be a cheaper stock relative to its peers. … The company is a consumer finance industry laggard in terms of its future growth outlook, and is trading relatively in-line with its peers.

Simply Wall St -

How Should You Think About Sundaram Finance Limited's (NSE:SUNDARMFIN) Risks?

Any stock with a beta of greater than one is considered more volatile than the market, and those with a beta less than one is generally less volatile. … SUNDARMFIN’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … Therefore, this is a type of risk which is associated with higher beta.

Simply Wall St -

How Does Sundaram Finance Limited's (NSE:SUNDARMFIN) Earnings Growth Stack Up Against Industry Performance?

Analyzing Sundaram Finance Limited's (NSEI:SUNDARMFIN) track record of past performance is a valuable exercise for investors. … See our latest analysis for Sundaram Finance How Did SUNDARMFIN's Recent Performance Stack Up Against Its Past? … Given that these figures may be fairly myopic, I have created an annualized five-year figure for SUNDARMFIN's net income, which stands at IN₨5.48B This means generally, Sundaram Finance has been able to increasingly grow its bottom line over the past couple of years as well.

Simply Wall St -

Should You Be Tempted To Sell Sundaram Finance Limited (NSE:SUNDARMFIN) At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SUNDARMFIN Price per share = ₹1950.6 Earnings per share = ₹61.517 ∴ Price-Earnings Ratio = ₹1950.6 ÷ ₹61.517 = 31.7x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you are inadvertently comparing riskier firms with SUNDARMFIN, then SUNDARMFIN’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price. … If this assumption does not hold true, SUNDARMFIN’s higher P/E ratio may be because firms in our peer group are being undervalued by the market.

Simply Wall St -

Is It The Right Time To Buy Sundaram Finance Limited (NSE:SUNDARMFIN)?

Sundaram Finance Limited (NSEI:SUNDARMFIN), a consumer finance company based in India, saw a double-digit share price rise of over 10% in the past couple of months on the NSEI. … In addition to this, it seems like Sundaram Finance’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. … Sundaram Finance’s future growth appears to have been factored into the current share price, with shares trading above its fair value.

Simply Wall St -

Company Info

Description

Sundaram Finance Limited provides a range of financial services in India. The company accepts fixed deposits, cumulative deposits, and non-resident Indian deposits. Its loan products include car loans; home and mortgage loans; finance for the acquisition of new and used commercial vehicles; finance for construction equipment, such as excavators, loaders, dumpers, tippers, compacters, compressors, etc.; farm equipment, including tractors, combined harvesters, and other farm implements; diesel finance; tire finance; and asset based financing solutions. The company also offers debt and equity products, as well as portfolio management services; and motor, health, personal accident, home, travel, fire, marine, engineering, liability, and business interruption risks to individuals, families and businesses directly, as well as through its intermediaries and affinity partners. In addition, it provides enterprise resource management solutions to mid-sized companies through Microsoft Dynamics, as well as develops ERP solutions in manufacturing, retail and distribution, trading and logistics, automotive, new seed, and financial services; and business outsourcing services. Further, the company offers securities services, including fund accounting and transfer agency services. It operates through a network of 622 branches. Sundaram Finance Limited was founded in 1954 and is headquartered in Chennai, India.

Details
Name: Sundaram Finance Limited
SUNDARMFIN
Exchange: NSEI
Founded: 1954
₹163,578,213,078
111,103,860
Website: http://www.sundaramfinance.in
Address: Sundaram Finance Limited
Desabandhu Plaza,
First Floor,
Chennai,
Tamil Nadu, 600014,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI SUNDARMFIN Equity Shares National Stock Exchange of India IN INR 07. Jan 1998
BSE 590071 Equity Shares Mumbai Stock Exchange IN INR 07. Jan 1998
Number of employees
Current staff
Staff numbers
0
Sundaram Finance employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/25 12:43
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/04/10
Last earnings filing: 2018/06/22
Last earnings reported: 2018/03/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.