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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sundaram Finance Ltd

About the Company - Sundaram Finance Ltd

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
Finance & Investments21, 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. S 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

Sundaram Finance Ltd. Share Price Update

Share PriceValue
Today₹4,160.00
Previous Day₹4,121.85

Basic Stock Data of Sundaram Finance Ltd

Market Cap 41,302 Cr.
Current Price 3,718
High / Low3,941/2,190
Stock P/E25.8
Book Value 952
Dividend Yield0.73 %
ROCE8.00 %
ROE14.1 %
Face Value 10.0

Data Source: screener.in

Competitors of Sundaram Finance Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Times Guaranty Ltd 110 Cr. 122166/41.262.0 49.60.00 %2.50 %2.18 % 10.0
SBI Cards & Payment Services Ltd 70,077 Cr. 737933/69930.0 1160.34 %13.0 %25.7 % 10.0
Paisalo Digital Ltd 7,350 Cr. 164164/42.044.4 27.80.04 %11.4 %8.92 % 1.00
Mask Investments Ltd 27.4 Cr. 89.694.6/40.2144 4240.00 %0.12 %0.07 % 10.0
DCM Financial Services Ltd 13.2 Cr. 5.937.60/3.25 21.80.00 %2.97 %% 10.0
Industry Average45.52 Cr223.7156.08127.840.08%6%7.37%8.2

Sundaram Finance Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Revenue1,2991,3921,2851,2571,2931,2861,2721,2461,3371,4101,4841,5831,708
Interest682664618593547551546541578622666738820
Expenses278294364325426367274331329328301383376
Financing Profit339434303340320369452375430460516462512
Financing Margin %26%31%24%27%25%29%36%30%32%33%35%29%30%
Other Income7553564237315882
Depreciation23232520222534293336413944
Profit before tax323415331325304347441353400425533431471
Tax %26%24%23%25%30%24%21%27%30%24%23%28%30%
Net Profit298365299310274314398277332382509430435
EPS in Rs25.4830.9024.3525.7023.3226.0030.6022.1127.5529.9638.9933.7732.89
Gross NPA %
Net NPA %

Sundaram Finance Ltd Quarterly Chart

Sundaram Finance Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Revenue3,0243,7034,1074,2855,0275,5886,3313,6964,7075,2925,1115,5016,184
Interest1,1831,5161,7241,7821,8141,7351,3441,7702,4272,6592,2362,4062,846
Expenses1,1401,2881,3891,5052,2212,7353,9069321,2221,2351,3921,2881,388
Financing Profit7019009939999921,1181,0809941,0571,3981,4831,8061,950
Financing Margin %23%24%24%23%20%20%17%27%22%26%29%33%32%
Other Income148-5-2778134824824354369
Depreciation8410111211210610479589093101139160
Profit before tax6318078768608931,0221,0141,4181,0161,3301,4171,7111,860
Tax %32%31%34%33%34%34%34%27%21%25%25%26%
Net Profit4986206506446627688431,2588451,2231,2961,5001,756
EPS in Rs41.1850.7652.3051.8352.4961.5265.70104.4971.25104.87105.61118.61135.61
Dividend Payout %19%18%19%20%21%19%18%17%18%17%19%23%

Sundaram Finance Ltd Profit & Loss Yearly Chart

Sundaram Finance Ltd 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:21%
5 Years:22%
3 Years:25%
1 Year:64%
Return on Equity
10 Years:15%
5 Years:14%
3 Years:15%
Last Year:14%

Sundaram Finance Ltd 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

Sundaram Finance Ltd 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

Sundaram Finance Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
ROE %23%24%21%17%15%15%14%14%12%16%14%14%

Sundaram Finance Ltd Financial Efficiency Indicators Chart

Sundaram Finance Ltd Share Holding Pattern

MonthMar 2016Jun 2016Sep 2018Dec 2018Mar 2019Jun 2019Sep 2020Mar 2022
Promoters36.16%36.14%36.45%36.45%36.47%36.69%35.93%38.49%
FIIs1.66%4.95%6.50%6.64%7.21%7.95%11.42%9.91%
DIIs13.96%10.87%11.44%11.34%11.58%11.08%10.87%14.27%
Public47.32%47.13%44.75%44.71%43.88%44.28%40.96%36.50%
Others0.91%0.91%0.86%0.86%0.86%0.00%0.83%0.82%
No. of Shareholders20,75821,11226,38425,93624,65926,34725,59124,149

Sundaram Finance Ltd Shareholding Pattern Chart

No. of Sundaram Finance Ltd Shareholders

Sundaram Finance Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Emerging Equity Fund - Regular Plan27431042.5962.36
Axis ELSS Tax Saver Fund22218812.27779.5
SBI Magnum Midcap Fund14900003.38522.74
Axis Midcap Fund11136791.59390.71
Axis Growth Opportunities Fund9895443.24347.16
HSBC Midcap Fund7435682.83260.87
Axis Small Cap Fund4838720.91169.76
ICICI Prudential Equity & Debt Fund4281550.5150.21
Axis Multicap Fund3378852.49118.54
UTI Mid Cap Fund3065021.1107.53

Sundaram Finance Ltd ROCE Trend

Sundaram Finance Ltd EPS Trend

Sundaram Finance Ltd 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 (%)32.299.8611.2541.748.21
Return On Assets (%)2.352.432.501.763.44
Long Term Debt / Equity (X)0.002.943.350.004.00
Total Debt / Equity (X)4.084.134.725.384.00
Asset Turnover Ratio (%)0.110.090.090.110.10
Current Ratio (X)1.254.174.051.1857.94
Quick Ratio (X)1.254.174.051.1857.94
Dividend Payout Ratio (NP) (%)0.0015.0014.1837.7119.42
Dividend Payout Ratio (CP) (%)0.0013.8113.1333.8718.50
Earning Retention Ratio (%)0.0085.0085.8262.2980.58
Cash Earning Retention Ratio (%)0.0086.1986.8766.1381.50
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.)67142.6259322.3965865.5449833.8643056.34
EV / Net Operating Revenue (X)12.2611.6112.5510.6111.42
EV / EBITDA (X)15.7815.8016.1414.1715.51
MarketCap / Net Operating Revenue (X)4.604.195.432.824.55
Retention Ratios (%)0.0084.9985.8162.2880.57
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

Sundaram Finance Ltd Profitability Ratios (%)

Sundaram Finance Ltd Liquidity Ratios

Sundaram Finance Ltd Liquidity Ratios (%)

Sundaram Finance Ltd Interest Coverage Ratios (X)

Sundaram Finance Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sundaram Finance Ltd

Fair Value: ₹3488.47

The stock is overvalued by 6.17% compared to the current price ₹3718

*Investments are subject to market risks

Strength and Weakness of Sundaram Finance Ltd

Unable to fetch valid data for stock valuation.

Should I Buy Sundaram Finance Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding 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: 32.29% (Industry Average ROCE: 5.68%)
      • 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): 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.
    4. Quick Ratio: 1.25
      • 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: 25.8 (Industry average Stock P/E: 24.33)
      • 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: 4.08
      • 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 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