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Last Updated on: 19 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sundaram Finance Ltd

Basic Stock Data

Last Updated: June 19, 2024, 2:21 pm

Market Cap 51,871 Cr.
Current Price 4,669
High / Low4,998/2,490
Stock P/E34.9
Book Value 997
Dividend Yield0.66 %
ROCE9.21 %
ROE14.2 %
Face Value 10.0
PEG Ratio2.76

Competitors of Sundaram Finance Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sundaram Finance Holdings Ltd 6,041 Cr. 272300/94.511.3 2162.10 %5.85 %12.8 % 5.00
Vardhman Holdings Ltd 1,085 Cr. 3,4003,788/2,4255.85 10,3310.14 %6.07 %5.78 % 10.0
Delphi World Money Ltd 243 Cr. 218475/17316.0 1990.00 %10.8 %7.09 % 10.0
Mahindra & Mahindra Financial Services Ltd 38,025 Cr. 308347/23719.6 1612.01 %8.74 %10.0 % 2.00
Bridge Securities Ltd 7.96 Cr. 23.728.6/5.3515.3 2.830.00 %98.6 %75.4 % 10.0
Industry Average8,859.91 Cr594.3464.091,254.380.34%16.32%25.11%7.59

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Revenue1,2851,2571,2931,2861,2721,2461,3371,4101,4841,5831,7081,8212,156
Interest618593547551546541578622667738821910948
Expenses364325426367274331329327300383375351524
Financing Profit303340320369452375430460516462512561684
Financing Margin %24%27%25%29%36%30%32%33%35%29%30%31%32%
Other Income535642373158827-90
Depreciation25202225342933364139444853
Profit before tax331325304347441353400425533431471520541
Tax %23%25%30%24%21%27%30%24%23%28%30%23%28%
Net Profit299310274314398277332382509430435506472
EPS in Rs24.3525.7023.3226.0030.6022.1127.5529.9638.9933.7732.8938.4724.11
Gross NPA %
Net NPA %

Last Updated: June 9, 2024, 12:34 pm

Quarterly Chart

Profit & Loss - Annual Report

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Revenue3,7034,1074,2855,0275,5886,3313,6964,7075,2925,1115,5017,267
Interest1,5161,7241,7821,8141,7351,3441,7702,4272,6592,2362,4063,418
Expenses1,2881,3891,5052,2212,7353,9069321,2221,2351,3921,2881,632
Financing Profit9009939999921,1181,0809941,0571,3981,4831,8062,217
Financing Margin %24%24%23%20%20%17%27%22%26%29%33%31%
Other Income8-5-27781348248243543-73
Depreciation10111211210610479589093101139183
Profit before tax8078768608931,0221,0141,4181,0161,3301,4171,7111,961
Tax %31%34%33%34%34%34%27%21%25%25%26%27%
Net Profit6206506446627688431,2588451,2231,2961,5001,842
EPS in Rs50.7652.3051.8352.4961.5265.70104.4971.25104.87105.61118.61129.25
Dividend Payout %18%19%20%21%19%18%17%18%17%19%23%12%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)4.84%-0.92%2.80%16.01%9.77%49.23%-32.83%44.73%5.97%15.74%22.80%
Change in YoY Net Profit Growth (%)0.00%-5.76%3.72%13.22%-6.25%39.46%-82.06%77.56%-38.76%9.77%7.06%

Growth

Compounded Sales Growth
10 Years:4%
5 Years:-3%
3 Years:5%
TTM:25%
Compounded Profit Growth
10 Years:9%
5 Years:13%
3 Years:19%
TTM:31%
Stock Price CAGR
10 Years:22%
5 Years:25%
3 Years:23%
1 Year:95%
Return on Equity
10 Years:15%
5 Years:14%
3 Years:15%
Last Year:14%

Last Updated: April 11, 2024, 8:47 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital56111111111111111110110110110110110110
Reserves2,1092,5032,9693,6394,0844,6985,5396,1496,5677,6208,6859,80010,464
Preference Capital000000000000
Borrowings13,34916,79517,82818,79518,75820,21621,06925,02335,93936,46136,35642,69448,892
Other Liabilities2,6962,6373,0053,2415,0955,7247,2682,3882,1052,3693,0033,4623,831
Total Liabilities18,21022,04623,91425,78528,04830,74933,98633,67144,72146,56048,15456,06663,297
Fixed Assets5115415595158178628214519038651,1171,2961,366
CWIP0032433000010
Investments1,3471,9632,4502,7314,0264,8158,6934,5395,0966,0578,0888,0829,380
Other Assets16,35219,54220,90322,53723,20125,07024,46928,68038,72239,63838,95046,68752,551
Total Assets18,21022,04623,91425,78528,04830,74933,98633,67144,72146,56048,15456,06663,297

Reserves and Borrowings Chart

Sundaram Finance Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -2,374-2,210-564-1,430310-965-5,547-4,20094501,781-6,504
Cash from Investing Activity 142-483-228446-83-554-1,1821,000-1,983-243-1,597669
Cash from Financing Activity 1,5702,7131,004757-2611,3946,7563,2121,862-122-2005,890
Net Cash Flow-66219213-227-33-1242712-11185-1654

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow1.001.001.002.002.003.00932.001.001.001.001.001.00

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

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
ROE %24%21%17%15%15%14%14%12%16%14%14%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters35.91%35.90%35.89%35.89%38.49%38.49%38.49%38.49%38.49%38.49%38.49%37.88%
FIIs0.00%0.00%0.00%0.00%9.91%0.00%7.57%7.69%7.78%7.78%8.35%8.31%
DIIs23.90%24.11%24.18%24.19%14.27%24.06%16.70%16.80%16.87%16.94%16.55%16.84%
Public39.38%39.16%39.10%39.10%36.50%36.64%36.41%36.20%36.04%35.97%35.80%36.16%
Others0.00%0.00%0.00%0.00%0.82%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
No. of Shareholders23,57322,88822,01323,41324,14924,82724,07323,69323,65235,74141,73842,597

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Emerging Equity Fund - Regular Plan2,743,1042.5962.362,221,8812024-06-1823.46%
Axis ELSS Tax Saver Fund2,221,8812.27779.52,221,8812024-06-180%
SBI Magnum Midcap Fund1,490,0003.38522.742,221,8812024-06-18-32.94%
Axis Midcap Fund1,113,6791.59390.712,221,8812024-06-18-49.88%
Axis Growth Opportunities Fund989,5443.24347.162,221,8812024-06-18-55.46%
HSBC Midcap Fund743,5682.83260.872,221,8812024-06-18-66.53%
Axis Small Cap Fund483,8720.91169.762,221,8812024-06-18-78.22%
ICICI Prudential Equity & Debt Fund428,1550.5150.212,221,8812024-06-18-80.73%
Axis Multicap Fund337,8852.49118.542,221,8812024-06-18-84.79%
UTI Mid Cap Fund306,5021.1107.532,221,8812024-06-18-86.21%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)119.59106.48105.7471.85105.40
Diluted EPS (Rs.)119.59106.48105.7471.85105.40
Cash EPS (Rs.)128.00105.9899.3881.2398.77
Book Value[Excl.RevalReserv]/Share (Rs.)1146.871006.34857.73738.21726.17
Book Value[Incl.RevalReserv]/Share (Rs.)1146.871006.34857.73738.21726.17
Revenue From Operations / Share (Rs.)496.93463.60476.28426.23342.21
PBDIT / Share (Rs.)386.22340.68370.48319.21252.07
PBIT / Share (Rs.)373.63331.50362.04311.09246.79
PBT / Share (Rs.)155.26128.56120.6790.73128.72
Net Profit / Share (Rs.)115.4096.8090.9473.1093.50
NP After MI And SOA / Share (Rs.)119.58106.48105.7471.85105.40
PBDIT Margin (%)77.7273.4877.7874.8973.65
PBIT Margin (%)75.1871.5076.0172.9872.11
PBT Margin (%)31.2427.7325.3321.2837.61
Net Profit Margin (%)23.2220.8719.0917.1527.32
NP After MI And SOA Margin (%)24.0622.9622.2016.8530.79
Return on Networth / Equity (%)13.2913.3415.0711.8518.54
Return on Capital Employeed (%)10.529.8611.2541.748.21
Return On Assets (%)2.352.432.501.763.44
Long Term Debt / Equity (X)2.662.943.350.004.00
Total Debt / Equity (X)4.314.134.725.384.00
Asset Turnover Ratio (%)0.100.090.090.110.10
Current Ratio (X)3.194.174.051.1857.94
Quick Ratio (X)3.194.174.051.1857.94
Dividend Payout Ratio (NP) (%)18.3615.0014.1837.7119.42
Dividend Payout Ratio (CP) (%)16.6113.8113.1333.8718.50
Earning Retention Ratio (%)81.6485.0085.8262.2980.58
Cash Earning Retention Ratio (%)83.3986.1986.8766.1381.50
Interest Coverage Ratio (X)1.771.681.531.451.57
Interest Coverage Ratio (Post Tax) (X)1.531.481.381.331.32
Enterprise Value (Cr.)69449.2359322.3965865.5449833.8643056.34
EV / Net Operating Revenue (X)12.6811.6112.5510.6111.42
EV / EBITDA (X)16.3215.8016.1414.1715.51
MarketCap / Net Operating Revenue (X)4.604.195.432.824.55
Retention Ratios (%)81.6384.9985.8162.2880.57
Price / BV (X)2.542.433.681.982.74
Price / Net Operating Revenue (X)4.604.195.432.824.55
EarningsYield0.050.050.040.050.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 4,973.54

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: 6.52% compared to the current price 4669

Intrinsic Value: 5,602.67

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: 20.00% compared to the current price ₹4669

Last 5 Year EPS CAGR: 12.65%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

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 Ltd:
    1. Net Profit Margin: 23.22%
      • 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: 10.52% (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%: 13.29% (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): 1.53
      • 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: 3.19
      • 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: 34.9 (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: 4.31
      • 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 Ltd. is a Public Limited Listed company incorporated on 11/08/1954 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L65191TN1954PLC002429 and registration number is 002429. Currently Company is involved in the business activities of Financial service activities, except insurance and pension funding. Company’s Total Operating Revenue is Rs. 3870.03 Cr. and Equity Capital is Rs. 111.10 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Non-Banking Financial Company (NBFC)21, Patullos Road, Chennai (Madras) Tamil Nadu 600002investorservices@sundaramfinance.in
http://www.sundaramfinance.in
Management
NamePosition Held
Mr. S VijiChairman
Mr. Harsha VijiExecutive Vice Chairman
Mr. Rajiv C LochanManaging Director
Mr. A N RajuDeputy Managing Director
Mr. Srivats RamDirector
Mr. S MahalingamDirector
Mr. S PrasadDirector
Ms. Shobhana RamachandhranDirector
Mr. R Raghuttama RaoDirector
Mr. L GaneshDirector
Mr. T T SrinivasaraghavanDirector
Mr. P N VenkatachalamDirector
Mrs. Bhavani BalasubramanianDirector

FAQ

What is the latest fair value of Sundaram Finance Ltd?

The latest fair value of Sundaram Finance Ltd is ₹4973.54.

What is the Market Cap of Sundaram Finance Ltd?

The Market Cap of Sundaram Finance Ltd is 51,871 Cr..

What is the current Stock Price of Sundaram Finance Ltd as on 19 June 2024?

The current stock price of Sundaram Finance Ltd as on 19 June 2024 is ₹4,669.

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

In FY 2024, the High / Low of Sundaram Finance Ltd stocks is 4,998/2,490.

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

The Stock P/E of Sundaram Finance Ltd is 34.9.

What is the Book Value of Sundaram Finance Ltd?

The Book Value of Sundaram Finance Ltd is 997.

What is the Dividend Yield of Sundaram Finance Ltd?

The Dividend Yield of Sundaram Finance Ltd is 0.66 %.

What is the ROCE of Sundaram Finance Ltd?

The ROCE of Sundaram Finance Ltd is 9.21 %.

What is the ROE of Sundaram Finance Ltd?

The ROE of Sundaram Finance Ltd is 14.2 %.

What is the Face Value of Sundaram Finance Ltd?

The Face Value of Sundaram Finance Ltd is 10.0.

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 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