Sundaram Finance Ltd Stock Analysis

BSE: 590071 | NSE: SUNDARMFIN | Finance - NBFC | Large Cap

BSE Share Price 29-Nov-2022 16:07
2260.00 9.35 (0.42%)

DeciZen - Make an Informed Decision on Sundaram Finance

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Sundaram Finance Price Chart

P/E Ratio (SA) :
24.27
Market Cap :
25,005.6 Cr.
52-wk low :
1,557.1
52-wk high :
2,485.1
Bole Toh?

1. Is Sundaram Finance Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Sundaram Finance Ltd is a average quality company.

2. Is Sundaram Finance Ltd undervalued or overvalued?

The key valuation ratios of Sundaram Finance Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Sundaram Finance Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Sundaram Finance Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Sundaram Finance:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Sundaram Finance Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Operating Income (₹ Cr.)2,0632,2152,2542,3122,3252,8063,3223,8423,9543,8703,762
YoY Gr. Rt. %-7.4%1.7%2.6%0.5%20.7%18.4%15.7%2.9%-2.1%-
Adj EPS (₹ ) 36.939.840.94344.650.7101.465.272.881.392.8
YoY Gr. Rt. %-7.9%2.6%5.1%3.8%13.8%99.9%-35.7%11.8%11.7%-
BVPS (₹ )187.7216.4267.9298337371.8453.7499.1556.1620.2658.4
YoY Gr. Rt. %-15.3%23.8%11.2%13.1%10.3%22%10%11.4%11.5%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)2.92.82.72.72.72.542.32.42.60

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Net Interest Income7.2%10.7%5.2%-2.1%
Adj EPS9.2%12.8%-7.1%11.7%
BVPS14.2%13%11%11.5%
Share Price 16.4% 3.9% 11.5% -3.7%

Key Financial Ratios

RATIOS \ YEARSMar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)0.50.50.50.90.60.50.81.700-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 018.221.418.417.917.619.518.400-
Margins
Net Profit Margin (%)19.92020.220.621.320.133.918.820.523.327.4
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)21.219.716.915.21414.324.613.713.813.814.1

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 14.50%

Total Income has increased 5.23 CAGR in last 3 years

Total income growth is good in last 4 quarters

Net Profit has declined -7.08 CAGR in last 3 years

Latest Financials - Sundaram Finance Ltd.

Standalone Consolidated
TTM EPS (₹) 92.8 106.3
TTM Sales (₹ Cr.) 3,762 4,623
BVPS (₹.) 658.4 831.7
Reserves (₹ Cr.) 7,204 9,130
P/BV 3.42 2.71
PE 24.27 21.18
From the Market
52 Week Low / High (₹) 1557.10 / 2485.05
All Time Low / High (₹) 72.50 / 2883.95
Market Cap (₹ Cr.) 25,006
Equity (₹ Cr.) 111.1
Face Value (₹) 10
Industry PE 28.2

Management X-Ray of Sundaram Finance :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Sundaram Finance

Adj EPS (Rs.)
Total Income (Cr.)
ROE (%)
BVPS (Rs.)

News

Sundaram Finance Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Sundaram Finance on 29-Nov-2022 16:07 is : 2,260.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 29-Nov-2022 16:07 the market cap of Sundaram Finance stood at ₹ 25,005.6.
The latest PE ratio of Sundaram Finance as of 29-Nov-2022 16:07 is 24.27.
The latest PB ratio of Sundaram Finance as of 29-Nov-2022 16:07 is 3.42
The 52-week high of Sundaram Finance is ₹ 2,485.1 and the 52-week low is ₹ 1,557.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Sundaram Finance is ₹ 3,762 ( Cr.) .

About Sundaram Finance Ltd

Sundaram Finance, a Sundram Group company, was incorporated in 1954, with the object of financing the purchase of commercial vehicles and passenger cars. The company was started with a paid-up capital of Rs.2.00 Lakhs and later went public in 1972.

The company's shares were listed in the Madras Stock Exchange in 1972 and in the National Stock Exchange in January 1998.

Subsequently, the equity shares of the company have been delisted from Madras Stock Exchange Limited (MSE) with effect from January 27, 2004, in accordance with SEBI (Delisting of Securities) Guidelines, 2003, for voluntary delisting.

Sundaram has grown today into one of the most trusted financial services groups in India. Today, the activities of the group span savings products like deposits and mutual funds, car and commercial vehicle finance, insurance, home loans, software solutions, business process outsourcing, tyre finance, fleet cards and logistics services. The strength of the Group lies in the quick completion of transactions, long association with transporters for generations and the intimate knowledge of the market and its nuances.

The Group has a vast network of over 400 branches to cater to the financing needs of our customers.

Sundaram Finance is one of the oldest and largest providers of finance for the acquisition of commercial vehicles of all makes.The commercial vehicle finance provided by it helps the small operators to acquire vehicles with minimum hassle and documentation. It provides customised financing options to suit the needs.

Large fleet operators also find it easy to expand their fleet through the finance provided by the company. It also offers special schemes, supported by the manufacturers, where the rates are highly competitive. The finance schemes are easy to understand and without any hidden costs.

The other Group Companies:

  • Lakshmi General Finance (since merged with SFL on 1/4/2005)
  • Sundaram BNP Paribas Asset Management
  • Sundaram BNP Paribas Home Finance
  • Royal Sundaram Alliance Insurance
  • Sundaram Infotech Solutions
  • Sundaram Business Services
  • Sundaram Finance Distribution Limited
  • LGF Services Limited
  • Infreight Logistics Solutions Limited

Milestones:

  • 2008- Union de Credit pour le Batiment SA (UCB), a wholly owned subsidiary of BNP Paribas SA, France acquires 49.90% stake in Sundaram Home Finance Ltd from SFL.
  • 2006- BNP Paribas Asset Management Group, France acquires 49.90 % stake in Sundaram Asset Management Company Ltd from SFL.
  • 2005- Merger with LGF making SF Billion dollar Balance sheet NBFC
  • 2001- Promoted Sundaram Business Services - BPO arm of Sundaram Finance
  • 2000-Promoted Sundaram Infotech Solutions - Infotech division of Sundaram Finance
  • 1999- Promoted Sundaram Home Finance Limited with equity participation from International Finance Corporation (IFC), Washington, and FMO Netherlands
  • 1998- Promoted Fiat Sundaram Auto Finance Limited, a joint venture with Fidis S.p.A., Italy

Awards/ Achievements

  • ‘Certificate of Commendation’ award by the Government of India under the scheme of “Good Tax Payers”.
  • “Second Best Tax Payer” in the category of Private Sector Company for Assessment Year 1994-95 in Tamil Nadu Region, from the Income Tax Department, Tamil Nadu.
  • ‘Rolling Trophy’ by Rotary Club of Madras South West for Best Employer-Employee Relationship for the year 1995-96.
  • “Best Tax Payer” in the category of Private Sector Company for Assessment Year 1995-96 in Tamil Nadu Region, from the Income Tax Department, Tamil Nadu.
  • “Automan Award” to Shri T S Santhanam, Chairman, from Motor India in 1998.
  • “Pioneering Service Award” to Shri T S Santhanam Chairman, from Chennai Good Transport Association.
  • “Sarige Ratna Award” to Shri T S Santhanam, Chairman, from the Bangalore City Lorry Transporting Agents’ Association (Regd).
  • “Most Valued Customer Award” to Shri T S Santhanam Chairman, from the State Bank of India.
  • “The Best Financier of the New Millennium 2000” to Shri. G K Raman, Managing Director, from the All India Motor Transport Congress.
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