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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sundaram Finance Holdings Ltd

Basic Stock Data

Last Updated: June 22, 2024, 10:23 pm

Market Cap 5,987 Cr.
Current Price 270
High / Low300/94.6
Stock P/E11.2
Book Value 216
Dividend Yield2.10 %
ROCE5.85 %
ROE12.8 %
Face Value 5.00
PEG Ratio0.24

Competitors of Sundaram Finance Holdings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Satin Creditcare Network Ltd 2,670 Cr. 242284/1686.13 2170.00 %16.6 %21.8 % 10.0
Dalal Street Investments Ltd 15.6 Cr. 489615/227130 1660.00 %2.52 %2.39 % 10.0
Pilani Investment & Industries Corporation Ltd 4,433 Cr. 4,0034,140/1,85126.6 13,1930.37 %2.01 %1.29 % 10.0
Viji Finance Ltd 35.2 Cr. 2.473.30/1.05293 0.860.00 %1.62 %0.99 % 1.00
Maharashtra Scooters Ltd 9,499 Cr. 8,3108,608/5,37547.7 23,6402.05 %0.88 %0.87 % 10.0
Industry Average9,113.69 Cr633.7363.991,260.430.33%16.35%25.12%7.63

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales181814153719172035242425218
Expenses11101913191213101014111211
Operating Profit78-4118741024101313207
OPM %39%46%-30%9%48%38%22%51%70%41%54%52%95%
Other Income00-03111111220
Interest0000000000000
Depreciation0001300011111
Profit before tax78-5316841024101415206
Tax %43%22%-27%82%-5%41%103%34%18%133%37%24%15%
Net Profit3732193476413365997191102269
EPS in Rs1.661.420.871.533.531.851.502.914.443.184.084.6112.13

Last Updated: June 9, 2024, 12:29 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:10 am

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales6910093598591291
Expenses49596248614548
Operating Profit214131102446243
OPM %30%41%33%18%28%50%83%
Other Income3256336
Interest0000101
Depreciation1112423
Profit before tax234235142247245
Tax %22%28%16%32%21%32%21%
Net Profit1301377874161238533
EPS in Rs5.846.193.523.337.3510.7024.00
Dividend Payout %17%19%24%10%37%37%17%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)5.38%-43.07%-5.13%117.57%47.83%123.95%
Change in YoY Net Profit Growth (%)0.00%-48.45%37.94%122.70%-69.74%76.12%

Growth

Compounded Sales Growth
10 Years:%
5 Years:24%
3 Years:71%
TTM:219%
Compounded Profit Growth
10 Years:%
5 Years:31%
3 Years:93%
TTM:124%
Stock Price CAGR
10 Years:%
5 Years:29%
3 Years:57%
1 Year:186%
Return on Equity
10 Years:%
5 Years:8%
3 Years:9%
Last Year:13%

Last Updated: June 17, 2024, 1:50 pm

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

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

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow21.0041.0029.006.0021.0028.00225.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters55.59%55.59%55.59%55.59%55.59%55.59%55.59%55.59%55.59%55.59%55.29%54.97%
FIIs0.00%0.00%0.00%0.00%0.00%0.18%0.22%0.19%0.19%0.22%0.29%0.23%
DIIs6.51%6.44%6.28%6.17%5.89%5.57%5.57%5.57%5.58%5.46%5.46%5.45%
Public37.26%37.33%37.49%37.61%37.89%38.03%37.99%38.01%38.01%38.09%38.32%38.72%
No. of Shareholders30,83931,43231,20131,09131,22731,25331,33330,88530,40732,10433,55933,201

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund9,378,0060.31136.979,378,0062024-06-150%

ROCE Trend

EPS Trend

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

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 316.16

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 17.10% compared to the current price 270

Intrinsic Value: 464.13

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 71.90% compared to the current price ₹270

Last 5 Year EPS CAGR: 46.80%

*Investments are subject to market risks

Strength and Weakness

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 (2,851.29 cr) compared to borrowings (6.43 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (112.57 cr) and profit (61.14 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.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any 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: %)
      • 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. ROE%: 6.65% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. 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.
    5. 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.
    6. ✗ Stock P/E: 11.2 (Industry average Stock P/E: )
      • 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.
    7. ✗ 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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

FAQ

What is the latest fair value of Sundaram Finance Holdings Ltd?

The latest fair value of Sundaram Finance Holdings Ltd is ₹316.16.

What is the Market Cap of Sundaram Finance Holdings Ltd?

The Market Cap of Sundaram Finance Holdings Ltd is 5,987 Cr..

What is the current Stock Price of Sundaram Finance Holdings Ltd as on 23 June 2024?

The current stock price of Sundaram Finance Holdings Ltd as on 23 June 2024 is ₹270.

What is the High / Low of Sundaram Finance Holdings Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sundaram Finance Holdings Ltd stocks is 300/94.6.

What is the Stock P/E of Sundaram Finance Holdings Ltd?

The Stock P/E of Sundaram Finance Holdings Ltd is 11.2.

What is the Book Value of Sundaram Finance Holdings Ltd?

The Book Value of Sundaram Finance Holdings Ltd is 216.

What is the Dividend Yield of Sundaram Finance Holdings Ltd?

The Dividend Yield of Sundaram Finance Holdings Ltd is 2.10 %.

What is the ROCE of Sundaram Finance Holdings Ltd?

The ROCE of Sundaram Finance Holdings Ltd is 5.85 %.

What is the ROE of Sundaram Finance Holdings Ltd?

The ROE of Sundaram Finance Holdings Ltd is 12.8 %.

What is the Face Value of Sundaram Finance Holdings Ltd?

The Face Value of Sundaram Finance Holdings Ltd is 5.00.

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