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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sundaram Finance Holdings Ltd

About the Company - Sundaram Finance Holdings Ltd

Sundaram Finance Holdings Ltd. is a Public Limited Listed company incorporated on 13/10/1993 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L65100TN1993PLC025996 and registration number is 025996. Currently Company is involved in the business activities of Financial service activities, except insurance and pension funding. Company’s Total Operating Revenue is Rs. 78.12 Cr. and Equity Capital is Rs. 111.05 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & Investments21, Patullos Road, Chennai (Madras) Tamil Nadu 600002investorservices@sundaramholdings.in
http://www.sundaramholdings.in
Management
NamePosition Held
Mr. Harsha VijiChairman
Mr. R VenkatramanDirector
Ms. Shobhana RamachandhranDirector
Mr. S PrasadDirector
Mr. Sriram VijiDirector
Mr. Srivats RamDirector
Mr. Ananth RamanujamDirector
Ms. Priyamvada RamkumarDirector

Sundaram Finance Holdings Ltd. Share Price Update

Share PriceValue
Today₹224.80
Previous Day₹219.35

Basic Stock Data of Sundaram Finance Holdings Ltd

Market Cap 5,038 Cr.
Current Price 227
High / Low233/74.0
Stock P/E13.9
Book Value 179
Dividend Yield1.32 %
ROCE1.43 %
ROE7.23 %
Face Value 5.00

Data Source: screener.in

Competitors of Sundaram Finance Holdings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Max Financial Services Ltd 32,336 Cr. 9371,069/59975.2 1090.00 %11.9 %10.2 % 2.00
Muthoot Capital Services Ltd 525 Cr. 319460/2366.02 3590.00 %15.2 %17.5 % 10.0
360 ONE WAM Ltd 25,788 Cr. 719745/39536.0 91.12.39 %13.4 %21.4 % 1.00
Wealth First Portfolio Managers Ltd 509 Cr. 478548/26217.1 87.00.62 %25.5 %19.1 % 10.0
Motor & General Finance Ltd 153 Cr. 39.551.8/26.0 19.00.00 %3.07 %3.76 % 5.00
Industry Average248.8 Cr498.526.86133.020.6%13.81%14.39%5.6

Sundaram Finance Holdings Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales13131818141537191720352424
Expenses13111110191319121310101411
Operating Profit0278-41187410241013
OPM %1%16%39%46%-30%9%48%38%22%51%70%41%54%
Other Income2100-031111112
Interest0000000000000
Depreciation0000013000111
Profit before tax2378-53168410241014
Tax %47%26%43%22%-27%82%-5%41%103%34%18%133%37%
Net Profit19283732193476413365997191
EPS in Rs0.871.251.661.420.871.533.531.851.502.914.443.184.08

Sundaram Finance Holdings Ltd Quarterly Chart

Sundaram Finance Holdings Ltd Profit & Loss

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6910093598591103
Expenses49596248614546
Operating Profit21413110244657
OPM %30%41%33%18%28%50%56%
Other Income3256335
Interest0000101
Depreciation1112422
Profit before tax23423514224759
Tax %22%28%16%32%21%32%
Net Profit1301377874161238325
EPS in Rs5.846.193.523.337.3510.7014.61
Dividend Payout %17%19%24%10%37%37%

Sundaram Finance Holdings Ltd Profit & Loss Yearly Chart

Sundaram Finance Holdings Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:6%
3 Years:-1%
TTM:18%
Compounded Profit Growth
10 Years:%
5 Years:13%
3 Years:45%
TTM:68%
Stock Price CAGR
10 Years:%
5 Years:21%
3 Years:40%
1 Year:112%
Return on Equity
10 Years:%
5 Years:5%
3 Years:6%
Last Year:7%

Sundaram Finance Holdings Ltd Balance Sheet

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital76767676111111111
Reserves2,7362,2901,7822,1192,8913,4593,867
Borrowings002431819
Other Liabilities12887631079046132
Total Liabilities2,9402,4531,9222,3063,0963,6354,128
Fixed Assets6691094141
CWIP0000000
Investments2,9102,4201,8792,2693,0533,5534,044
Other Assets24273527344043
Total Assets2,9402,4531,9222,3063,0963,6354,128

Sundaram Finance Holdings Ltd Reserves and Borrowings Chart

Sundaram Finance Holdings Ltd Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 14758621930100
Cash from Investing Activity -146-30-11-10-345-25
Cash from Financing Activity -1-28-46-8319-73
Net Cash Flow115132

Sundaram Finance Holdings Ltd Financial Efficiency Indicators

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days553830332228
Inventory Days
Days Payable
Cash Conversion Cycle553830332228
Working Capital Days616069345269
ROCE %2%2%1%1%1%

Sundaram Finance Holdings Ltd Financial Efficiency Indicators Chart

No data available for the Shareholding

No data available for the Shareholding Pattern chart.

No data available for the No. of Shareholders chart.

Sundaram Finance Holdings Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Small Cap Fund93780060.31136.97

Sundaram Finance Holdings Ltd ROCE Trend

Sundaram Finance Holdings Ltd EPS Trend

Sundaram Finance Holdings Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)10.707.724.895.179.10
Diluted EPS (Rs.)10.707.724.895.179.10
Cash EPS (Rs.)1.490.970.732.032.07
Book Value[Excl.RevalReserv]/Share (Rs.)160.74135.16145.27122.91156.56
Book Value[Incl.RevalReserv]/Share (Rs.)160.74135.16145.27122.91156.56
Revenue From Operations / Share (Rs.)4.073.783.936.136.58
PBDIT / Share (Rs.)2.191.221.052.412.87
PBIT / Share (Rs.)2.121.020.952.322.80
PBT / Share (Rs.)2.100.980.942.302.78
Net Profit / Share (Rs.)1.420.770.631.942.00
NP After MI And SOA / Share (Rs.)10.707.354.895.179.10
PBDIT Margin (%)53.8932.3026.7239.3043.53
PBIT Margin (%)52.1027.0624.2037.8642.51
PBT Margin (%)51.6226.0523.9437.5742.27
Net Profit Margin (%)34.8420.6016.2631.6430.38
NP After MI And SOA Margin (%)262.65194.49124.3584.41138.20
Return on Networth / Equity (%)6.655.433.364.205.81
Return on Capital Employeed (%)1.300.730.621.821.72
Return On Assets (%)6.535.273.204.065.60
Asset Turnover Ratio (%)0.020.030.020.040.08
Current Ratio (X)171.91541.48258.12444.3810.95
Quick Ratio (X)171.91541.48258.12444.3810.95
Dividend Payout Ratio (NP) (%)14.0213.6110.2214.5016.48
Dividend Payout Ratio (CP) (%)13.9213.2510.0214.2616.36
Earning Retention Ratio (%)85.9886.3989.7885.5083.52
Cash Earning Retention Ratio (%)86.0886.7589.9885.7483.64
Interest Coverage Ratio (X)111.9932.14103.43132.19175.72
Interest Coverage Ratio (Post Tax) (X)73.4121.5063.93107.44123.64
Enterprise Value (Cr.)1734.731524.681137.05617.851284.92
EV / Net Operating Revenue (X)19.1818.1719.146.6812.92
EV / EBITDA (X)35.5956.2571.6216.9829.68
MarketCap / Net Operating Revenue (X)19.3618.3419.336.7812.97
Retention Ratios (%)85.9786.3889.7785.4983.51
Price / BV (X)0.490.510.520.330.54
Price / Net Operating Revenue (X)19.3618.3519.336.7812.97
EarningsYield0.130.100.060.120.10

Sundaram Finance Holdings Ltd Profitability Ratios (%)

Sundaram Finance Holdings Ltd Liquidity Ratios

Sundaram Finance Holdings Ltd Liquidity Ratios (%)

Sundaram Finance Holdings Ltd Interest Coverage Ratios (X)

Sundaram Finance Holdings Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sundaram Finance Holdings Ltd

Fair Value: ₹182.26

The stock is overvalued by 19.71% compared to the current price ₹227

*Investments are subject to market risks

Strength and Weakness of Sundaram Finance Holdings Ltd

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 1.84 and average Dividend Yield of 36.75%.
  2. The company has higher reserves (2,734.86 cr) compared to borrowings (6.57 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (85.71 cr) and profit (34.57 cr) over the years.
  1. The stock has a low average ROCE of 1.17%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 57.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 34.33, which may not be favorable.

Should I Buy Sundaram Finance Holdings Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sundaram Finance Holdings Ltd:
    1. Net Profit Margin: 34.84%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 1.30% (Industry Average ROCE: 10.3%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 73.41
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 171.91
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 11.1 (Industry average Stock P/E: 20.83)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✗ Total Debt / Equity: N/A
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sundaram Finance Holdings Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE