Sundaram Finance
Market Cap
₹132.3b
Last Updated
2020/03/30 12:55 UTC
Data Sources
Company Financials
Executive Summary
Sundaram Finance Limited provides a range of financial services in India.
Rewards
Risk Analysis
+ 2 more risks
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
| SUNDARMFIN | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.3% | -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
1 month ago | Simply Wall St
Have Insiders Sold Sundaram Finance Limited (NSE:SUNDARMFIN) Shares Recently?2 months ago | Simply Wall St
What Percentage Of Sundaram Finance Limited (NSE:SUNDARMFIN) Shares Do Insiders Own?4 months ago | Simply Wall St
Have Sundaram Finance Limited (NSE:SUNDARMFIN) Insiders Been Selling Their Stock?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
- Take a look at our analysis of SUNDARMFIN’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Sundaram Finance competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Diversified Financials industry.
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Director | no data | ₹49.11m | 0.99% ₹1.3b | |
| Senior VP | 11.67yrs | ₹1.70m | 0.50% ₹666.3m | |
| Director of Operations & Director | 5.75yrs | ₹27.96m | 0.032% ₹41.7m | |
| Deputy MD & Director | 9.5yrs | ₹38.06m | 1.52% ₹2.0b | |
| Independent Non-Executive Director | 9.17yrs | ₹1.59m | no data | |
| Chairman of the Board | 14.75yrs | ₹1.05m | 2.41% ₹3.2b | |
| Independent Non-Executive Director | 6.17yrs | ₹1.68m | 0.27% ₹359.6m | |
| Independent Non-Executive Director | 3yrs | ₹2.08m | 0.0057% ₹7.5m | |
| Non-Executive Director | no data | ₹1.05m | 0.73% ₹966.6m | |
| Independent Non-Executive Director | 5.83yrs | ₹1.46m | 0.0029% ₹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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SUNDARMFIN | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Jan 1998 |
| 590071 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Jan 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.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 12:55 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.