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SUND

Sundaram FinanceNSEI:SUNDARMFIN Stock Report

Market Cap

₹261.1b

7D

-3.1%

1Y

78.2%

Updated

27 Sep, 2021

Data

Company Financials
SUNDARMFIN fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance5/6
Financial Health3/6
Dividends3/6

SUNDARMFIN Overview

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

Sundaram Finance Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sundaram Finance
Historical stock prices
Current Share Price₹2,349.85
52 Week High₹1,276.05
52 Week Low₹2,868.00
Beta0.63
1 Month Change-9.30%
3 Month Change-11.94%
1 Year Change78.17%
3 Year Change54.97%
5 Year Change73.57%
Change since IPO1,959.01%

Recent News & Updates

Shareholder Returns

SUNDARMFININ Consumer FinanceIN Market
7D-3.1%1.3%0.8%
1Y78.2%95.9%67.5%

Return vs Industry: SUNDARMFIN underperformed the Indian Consumer Finance industry which returned 95.9% over the past year.

Return vs Market: SUNDARMFIN exceeded the Indian Market which returned 67.5% over the past year.

Price Volatility

Is SUNDARMFIN's price volatile compared to industry and market?
SUNDARMFIN volatility
SUNDARMFIN Beta0.63
Industry Beta1.25
Market Beta1

Stable Share Price: SUNDARMFIN is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SUNDARMFIN's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19544,036Rajiv Lochanhttps://www.sundaramfinance.in

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.

Sundaram Finance Fundamentals Summary

How do Sundaram Finance's earnings and revenue compare to its market cap?
SUNDARMFIN fundamental statistics
Market Cap₹261.08b
Earnings (TTM)₹11.81b
Revenue (TTM)₹27.54b

22.1x

P/E Ratio

9.5x

P/S Ratio

Is SUNDARMFIN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SUNDARMFIN income statement (TTM)
Revenue₹27.54b
Cost of Revenue₹2.98b
Gross Profit₹24.56b
Expenses₹12.75b
Earnings₹11.81b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)106.33
Gross Margin89.18%
Net Profit Margin42.89%
Debt/Equity Ratio322.5%

How did SUNDARMFIN perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

17%

Payout Ratio

Valuation

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

22.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SUNDARMFIN (₹2349.85) is trading above our estimate of fair value (₹439.11)

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


Price To Earnings Ratio

PE vs Industry: SUNDARMFIN is good value based on its PE Ratio (22.1x) compared to the Indian Consumer Finance industry average (22.2x).

PE vs Market: SUNDARMFIN is poor value based on its PE Ratio (22.1x) compared to the Indian market (20.7x).


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 (3.4x) compared to the IN Consumer Finance industry average (0.9x).


Future Growth

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

28.6%

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.


Past Performance

How has Sundaram Finance performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUNDARMFIN has high quality earnings.

Growing Profit Margin: SUNDARMFIN's current net profit margins (42.9%) are higher than last year (36.5%).


Past Earnings Growth Analysis

Earnings Trend: SUNDARMFIN's earnings have grown by 8.9% per year over the past 5 years.

Accelerating Growth: SUNDARMFIN's earnings growth over the past year (35.1%) exceeds its 5-year average (8.9% per year).

Earnings vs Industry: SUNDARMFIN earnings growth over the past year (35.1%) exceeded the Consumer Finance industry 5.7%.


Return on Equity

High ROE: SUNDARMFIN's Return on Equity (13.5%) is considered low.


Financial Health

How is Sundaram Finance's financial position?


Financial Position Analysis

Short Term Liabilities: SUNDARMFIN's short term assets (₹418.9B) exceed its short term liabilities (₹94.7B).

Long Term Liabilities: SUNDARMFIN's short term assets (₹418.9B) exceed its long term liabilities (₹276.7B).


Debt to Equity History and Analysis

Debt Level: SUNDARMFIN's debt to equity ratio (322.5%) is considered high.

Reducing Debt: SUNDARMFIN's debt to equity ratio has reduced from 354.6% to 322.5% over the past 5 years.

Debt Coverage: SUNDARMFIN's debt is not well covered by operating cash flow (1.5%).

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


Balance Sheet


Dividend

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

0.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SUNDARMFIN's dividend (0.77%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: SUNDARMFIN's dividend (0.77%) is low compared to the top 25% of dividend payers in the Indian market (1.45%).


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 (16.8%), SUNDARMFIN'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?

5.3yrs

Average management tenure


CEO

Rajiv Lochan (50 yo)

0.42

Tenure

₹24,224,000

Compensation

Mr. Rajiv Chellappa Lochan serves as the Managing Director at Sundaram Finance Ltd. since April 01, 2021 and serves as its Whole Time Director since June 3, 2020. He had been Managing Director, Chief Execu...


CEO Compensation Analysis

Compensation vs Market: Rajiv's total compensation ($USD328.19K) is below average for companies of similar size in the Indian market ($USD598.36K).

Compensation vs Earnings: Rajiv's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SUNDARMFIN's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: SUNDARMFIN's board of directors are considered experienced (7.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SUNDARMFIN insiders have only sold shares 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 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: ₹261.077b
  • Shares outstanding: 111.10m
  • Website: https://www.sundaramfinance.in

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 15:36
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.