Sundaram Finance Limited (SUNDARMFIN) AI Stock Analysis

• Market Cap: ₹530.24B
• Dividend Yield: 0.73%
• Average Volume (3M): 2.07K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.32
• Revenue Growth: 15.31%
• EPS Growth: 25.88%
• Country: IN
• Employees: 5,059
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 35.48
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹4,964.00 ▲(3.85% Upside)

Sundaram Finance Limited's overall stock score is driven primarily by its strong revenue growth and operational efficiency, despite challenges in profitability margins and cash flow management. The technical analysis indicates short-term bullish momentum, but medium to long-term resistance. Valuation metrics suggest moderate pricing, with a low dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial health.

Operational Efficiency

High operational efficiency reflects the company's ability to manage costs effectively, enhancing profitability and competitiveness.

Market Presence

Strong partnerships expand market reach and customer base, supporting sustained revenue generation and competitive advantage.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting long-term financial stability and growth.

Cash Flow Challenges

Negative cash flows indicate liquidity issues, which may hinder the company's ability to invest in growth and manage debt effectively.

Profitability Pressure

Decreasing profitability margins suggest challenges in maintaining cost efficiency or pricing power, potentially affecting future earnings.

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 providing a wide range of financial products and services. The company operates in sectors such as vehicle financing, insurance, mutual funds, and asset management. Its core offerings include commercial vehicle financing, loans for personal vehicles, and various insurance products, catering to both retail and corporate clients. With a strong presence across the country, Sundaram Finance is known for its customer-centric approach and innovative financial solutions.

How the Company Makes Money

Sundaram Finance generates revenue through multiple key streams, primarily through interest income from loans, which constitutes a significant portion of its earnings. The company provides financing for commercial and personal vehicles, and the interest charged on these loans is a primary revenue source. Additionally, it earns income from its insurance and mutual fund businesses, where it receives commissions and management fees. Strategic partnerships with manufacturers and dealers of vehicles enhance its distribution capabilities and customer reach, further contributing to its revenue. The company's diversified portfolio, including investment income from its asset management segment, also plays a crucial role in bolstering its overall earnings.

Sundaram Finance Limited Financial Statement Overview

Summary

Sundaram Finance Limited demonstrates strong revenue growth and operational efficiency, but faces challenges with profitability margins and cash flow management. High leverage poses potential risks, requiring careful monitoring. Overall, the company shows resilience in revenue generation but needs to address liquidity and leverage concerns to ensure long-term stability.

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	87.29B	83.38B	69.78B	53.21B	50.30B	51.91B
Gross Profit	44.27B	42.14B	36.28B	29.53B	27.82B	25.32B
EBITDA	27.28B	26.70B	21.44B	18.50B	15.18B	14.23B
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: 4779.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4779.8 is above the 20-day moving average (MA) of 4715.84, above the 50-day MA of 4632.77, and below the 200-day MA of 4786.21, indicating a neutral trend. The MACD of 11.53 indicates Positive momentum. The RSI at 49.22 is Neutral, neither overbought nor oversold. The STOCH value of 24.86 is Neutral, 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	73 Outperform	₹531.54B	26.20	―	0.60%	-14.24%	-40.53%
MAHABANK	71 Outperform	₹449.65B	7.38	―	2.63%	18.36%	14.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SUNDARMFIN	62 Neutral	₹530.24B	26.68	―	0.73%	15.31%	25.88%
MFSL	59 Neutral	₹549.61B	202.85	―	―	-16.19%	-53.19%
LICHSGFIN	55 Neutral	₹315.65B	5.72	―	1.88%	4.79%	13.08%
IFCI	45 Neutral	₹151.47B	47.22	―	―	-12.62%	175.71%

Sundaram Finance Limited Corporate Events

Sundaram Finance Announces Trading Window Closure

Sundaram Finance Limited has announced the closure of its trading window in compliance with SEBI’s Prohibition of Insider Trading Regulations, 2015. The trading window will be closed from October 1, 2025, until 48 hours after the release of the company’s unaudited financial results for the quarter and half-year ending September 30, 2025. This measure is part of the company’s adherence to regulatory requirements, ensuring transparency and fairness in its trading practices.