Sundaram Finance Limited (SUNDARMFIN) AI Stock Analysis

• Market Cap: ₹498.48B
• Dividend Yield: 0.77%
• Average Volume (3M): 2.07K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 1.28
• Revenue Growth: 17.12%
• EPS Growth: 28.35%
• Country: IN
• Employees: 5,059
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 38.59
• Shares Outstanding: 111,103,860
• 10 Day Avg. Volume: 1,586
• 30 Day Avg. Volume: 2,070
• PEG Ratio: 0.86
• Price to Book (P/B): 3.77
• Price to Sales (P/S): 5.88
• P/FCF Ratio: -5.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹5,057.00
• Price Target Upside: 12.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ₹5,057.00 ▲(12.71% Upside)

Sundaram Finance Limited's overall stock score is driven by strong revenue growth and operational efficiency but is hampered by liquidity challenges and high leverage. The technical indicators suggest a bearish trend, and the valuation metrics indicate potential overvaluation. The absence of earnings call and corporate events data limits further insights.

Sundaram Finance Limited Business Overview & Revenue Model

Company Description

Sundaram Finance Limited (SUNDARMFIN) is a leading financial services company based in India, primarily engaged in the business of providing a wide array of financial solutions. Established in 1954, the company operates in various sectors, including vehicle finance, commercial vehicle loans, and insurance services. It also has a presence in mutual funds and asset management, catering to both retail and corporate clients with a focus on delivering innovative financial products and services to meet diverse customer needs.

How the Company Makes Money

Sundaram Finance generates revenue through multiple key streams, primarily from interest income on loans and financing activities. The company provides financing for new and used vehicles, which constitutes a significant portion of its income. Additionally, it earns revenue from its insurance segment through premium collections and investment income from the funds it manages. Sundaram Finance also engages in asset management and mutual fund operations, earning fees from managing investments for clients. Strategic partnerships with automobile manufacturers and dealerships enhance its distribution capabilities and customer reach, further supporting its revenue generation. The company's diverse portfolio and strong market presence contribute to its overall financial performance.

Sundaram Finance Limited Financial Statement Overview

Summary

Sundaram Finance Limited shows strong revenue growth and operational efficiency, with a high gross profit margin. However, challenges exist with declining net profit margins and negative cash flows, indicating liquidity issues. High leverage further adds financial risk.

Income Statement

Sundaram Finance Limited has shown strong revenue growth with a 16.51% increase in the latest year, indicating a positive trajectory. The gross profit margin remains high at 88.71%, showcasing efficient cost management. However, the net profit margin has decreased to 22.23% from previous years, suggesting some pressure on profitability. The EBIT margin is robust at 70.56%, reflecting strong operational performance.

Balance Sheet

The company has a high debt-to-equity ratio of 3.97, indicating significant leverage, which could pose financial risks. Return on equity is solid at 14.24%, suggesting effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced asset structure but with potential risk due to high debt levels.

Cash Flow

Cash flow performance is concerning, with negative operating and free cash flows, indicating liquidity challenges. The free cash flow to net income ratio is slightly above 1, suggesting some alignment with profitability, but the negative growth in free cash flow highlights potential cash management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	89.01B	84.56B	36.30B	54.43B	51.05B	52.59B
Gross Profit	77.63B	75.01B	36.28B	47.82B	44.77B	46.19B
EBITDA	29.20B	26.70B	51.91B	38.39B	33.60B	35.37B
Net Income	19.20B	18.79B	14.36B	13.28B	11.73B	11.65B
Balance Sheet
Total Assets	0.00	753.37B	642.76B	560.66B	481.54B	465.93B
Cash, Cash Equivalents and Short-Term Investments	0.00	11.47B	15.03B	11.45B	2.06B	2.36B
Total Debt	0.00	524.06B	443.52B	358.81B	302.07B	305.30B
Total Liabilities	-131.97B	621.40B	531.98B	434.27B	370.65B	371.42B
Stockholders Equity	131.97B	131.97B	110.78B	99.10B	87.95B	77.30B
Cash Flow
Free Cash Flow	0.00	-90.31B	-85.69B	-65.30B	15.86B	4.35B
Operating Cash Flow	0.00	-89.85B	-84.86B	-65.04B	18.62B	4.50B
Investing Cash Flow	0.00	9.31B	889.00M	6.68B	-16.78B	-2.43B
Financing Cash Flow	0.00	78.21B	87.54B	58.90B	-2.00B	-1.22B

Sundaram Finance Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4486.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUNDARMFIN, the sentiment is Negative. The current price of 4486.65 is above the 20-day moving average (MA) of 4473.27, below the 50-day MA of 4569.19, and below the 200-day MA of 4744.09, indicating a neutral trend. The MACD of -33.15 indicates Negative momentum. The RSI at 49.20 is Neutral, neither overbought nor oversold. The STOCH value of 80.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SUNDARMFIN.

Sundaram Finance Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOTILALOFS	76 Outperform	₹603.15B	21.61	―	0.50%	11.16%	-1.15%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MFSL	57 Neutral	₹535.36B	197.06	―	―	-3.50%	-28.98%
SUNDARMFIN	55 Neutral	₹498.48B	25.76	―	0.77%	17.12%	28.35%
LICHSGFIN	53 Neutral	₹312.52B	5.68	―	1.76%	4.57%	15.87%
IFCI	52 Neutral	₹149.48B	45.89	―	―	-4.18%	105.31%