NSEI:SUNDARMFIN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with acceptable 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

SUNDARMFIN

0.7%

IN Consumer Finance

-0.06%

IN Market


1 Year Return

17.8%

SUNDARMFIN

41.4%

IN Consumer Finance

4.9%

IN Market

Return vs Industry: SUNDARMFIN underperformed the Indian Consumer Finance industry which returned 41.4% over the past year.

Return vs Market: SUNDARMFIN exceeded the Indian Market which returned 4.9% over the past year.


Shareholder returns

SUNDARMFINIndustryMarket
7 Day2.4%0.7%-0.06%
30 Day1.4%1.9%1.9%
90 Day7.2%21.6%9.6%
1 Year19.1%17.8%42.5%41.4%6.9%4.9%
3 Year39.3%35.8%148.0%142.5%38.5%31.5%
5 Year34.8%29.3%269.8%252.8%41.8%29.1%

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?

15.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SUNDARMFIN (₹1642.25) is trading above our estimate of fair value (₹425.95)

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 (15.7x) compared to the Consumer Finance industry average (13.9x).

PE vs Market: SUNDARMFIN is poor value based on its PE Ratio (15.7x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: SUNDARMFIN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SUNDARMFIN is overvalued based on its PB Ratio (2.9x) compared to the IN Consumer Finance industry average (0.7x).


Next Steps

Future Growth

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

-0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUNDARMFIN's earnings are forecast to decline over the next 3 years (-0.2% per year).

Earnings vs Market: SUNDARMFIN's earnings are forecast to decline over the next 3 years (-0.2% per year).

High Growth Earnings: SUNDARMFIN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SUNDARMFIN's revenue (29.4% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: SUNDARMFIN's revenue (29.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SUNDARMFIN's Return on Equity is forecast to be low in 3 years time (13.1%).


Next Steps

Past Performance

How has Sundaram Finance performed over the past 5 years?

17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUNDARMFIN has large one-off items impacting its financial results.

Growing Profit Margin: SUNDARMFIN's current net profit margins (-2959.6%) are lower than last year (27.1%).


Past Earnings Growth Analysis

Earnings Trend: SUNDARMFIN's earnings have grown by 17.2% per year over the past 5 years.

Accelerating Growth: SUNDARMFIN's earnings growth over the past year (21.6%) exceeds its 5-year average (17.2% per year).

Earnings vs Industry: SUNDARMFIN earnings growth over the past year (21.6%) exceeded the Consumer Finance industry 16.2%.


Return on Equity

High ROE: SUNDARMFIN's Return on Equity (15.3%) is considered low.


Return on Assets


Return on Capital Employed


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?

0.76%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%0.6%markettop25%2.4%industryaverage0.5%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: SUNDARMFIN's dividend (0.76%) is higher than the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: SUNDARMFIN's dividend (0.76%) is low compared to the top 25% of dividend payers in the Indian market (2.43%).


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 (12%), SUNDARMFIN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SUNDARMFIN's dividends in 3 years are forecast to be well covered by earnings (17.2% payout ratio).


Next Steps

Management

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

8.8yrs

Average board tenure


CEO

Thiruvallur Srinivasaraghavan (64yo)

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

Compensation vs Market: Thiruvallur's total compensation ($USD683.41K) is about average for companies of similar size in the Indian market ($USD710.65K).

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


Board Age and Tenure

8.8yrs

Average Tenure

69.5yo

Average Age

Experienced Board: SUNDARMFIN's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Thiruvallur Srinivasaraghavan (64yo)

    MD & Director

    • Tenure: 0yrs
    • Compensation: ₹49.11m
  • Srinivasan Ravindran (68yo)

    Senior VP

    • Tenure: 11.3yrs
    • Compensation: ₹1.70m
  • M. Ramaswamy (56yo)

    Chief Financial Officer

    • Tenure: 8.2yrs
    • Compensation: ₹20.75m
  • Ayalur Raju (60yo)

    Director of Operations & Director

    • Tenure: 5.4yrs
    • Compensation: ₹27.96m
  • S. Srinivasan (57yo)

    Senior VP & Head of Corporate Finance

    • Tenure: 0yrs
  • P. Viswanathan (81yo)

    Company Secretary & Compliance Officer

    • Tenure: 0yrs
    • Compensation: ₹13.20m
  • Harsha Viji (44yo)

    Deputy MD & Director

    • Tenure: 9.2yrs
    • Compensation: ₹38.06m
  • Rajesh Venkat (44yo)

    VP of Operations & Deputy Region Head of West

    • Tenure: 0yrs
  • S. Sridhar (50yo)

    VP & Head of Treasury

    • Tenure: 0yrs
  • V. Ananthanarayanan (56yo)

    Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Pudugramam Venkatachalam (75yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: ₹1.59m
  • Santhanam Viji (73yo)

    Chairman of the Board

    • Tenure: 14.4yrs
    • Compensation: ₹1.05m
  • Thiruvallur Srinivasaraghavan (64yo)

    MD & Director

    • Tenure: 0yrs
    • Compensation: ₹49.11m
  • Srinivasan Ravindran (68yo)

    Senior VP

    • Tenure: 11.3yrs
    • Compensation: ₹1.70m
  • Ayalur Raju (60yo)

    Director of Operations & Director

    • Tenure: 5.4yrs
    • Compensation: ₹27.96m
  • Shobhana Ramachandhran (59yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: ₹1.68m
  • Harsha Viji (44yo)

    Deputy MD & Director

    • Tenure: 9.2yrs
    • Compensation: ₹38.06m
  • Sreenivasan Prasad (71yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: ₹2.08m
  • Santhanam Ram (79yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: ₹1.05m
  • Seturaman Mahalingam (71yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • 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: SUNDARMFIN
  • Exchange: NSEI
  • Founded: 1954
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹184.127b
  • 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 Analysis2019/11/20 12:38
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
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.