Sundaram Finance Ltd.
NSE: SUNDARMFINSundaram Finance Ltd.: A 30-second snapshot
Sundaram Finance (Rs 4,608) is a Chennai-based NBFC with a 24.6x trailing PE and 46.8% profit margin, operating in the Banking/NBFC sector. The stock has declined 7.2% over the past 12 months and sits 18.3% below its 52-week high, trading below both the 50-DMA (Rs 4,852) and 200-DMA (Rs 4,836). Five-year revenue and earnings CAGRs of 18.6% and 18.8% respectively contrast with a persistence profile showing only 1 FCF-positive year and a debt-to-equity of 377.0 reflecting the leverage-heavy nature of NBFC funding.
P/E
24.6
Forward P/E
24.2
ROE
—
Debt / Equity
377.04
Profit Margin
+46.8%
Div. Yield
+0.8%
5Y ROE > 15%
0/5
5Y FCF > 0
1/5
Quality
44/100
News
2 headlines · 0 positive · 0 negative
Recent context
- ·Sundaram Finance announced reissuance of February 2028 bonds in mid-May 2026, indicating active use of debt capital markets to manage its liability stack — consistent with the rising debt trend flagged in persistence data.
- ·ETF inclusion coverage was noted in news, suggesting institutional passive exposure exists, though the extent is not quantified in available data.
- ·No earnings-related or regulatory news appeared in the two articles captured; both items carried neutral sentiment, providing no directional signal from recent news flow.
Strengths
- +5-year revenue CAGR of 18.6% and earnings CAGR of 18.8% rank among the more consistent growth trajectories across the peer group over the same measurement window.
- +Trailing profit margin of 46.8% is elevated relative to the Banking/NBFC sector, where net margins are typically compressed by provisioning and funding costs.
- +Forward PE of 24.2 is marginally below trailing PE of 24.6, suggesting the market prices in modest earnings improvement over the next 12 months.
- +Dividend yield of 0.8% provides a modest income component alongside the capital profile.
Weaknesses
- −Debt-to-equity of 377.0 sits at the high end of the NBFC leverage spectrum; with a rising debt trend and only 1 FCF-positive year on record, the liability structure is sensitive to changes in borrowing costs or funding availability.
- −ROE is unreported and roeYearsAbove15 = 0; a consistencyScore of 28/100 and qualityScore of 50 ranked 3rd of 6 peers indicate earnings quality is below the sector composite median.
- −Price is below both 50-DMA (Rs 4,852) and 200-DMA (Rs 4,836) with an 18.3% drawdown from the 52-week high; the 3-month decline of 14.1% is the steepest recent observation without an identifiable news-based catalyst.
- −Peer benchmarking shows BAJFINANCE (ROE 17.9%) and AXISBANK (ROE 13.2%) have quantified return profiles, whereas SUNDARMFIN's ROE remains unquantified in available data, limiting direct comparison.
Open questions
- ?Does the D/E of 377.0 reflect a structural feature of Sundaram Finance's NBFC funding model, or has leverage expanded beyond the company's own historical norm?
- ?Given FCF was positive in only 1 of the available historical years, how does the company service its debt obligations — via operating cash conversion, fresh borrowings, or asset monetisation?
- ?The 5-year earnings CAGR of 18.8% is strong, yet consistencyScore is 28/100 — which years drove the growth, and how evenly was it distributed across the measurement window?
- ?With the stock 18.3% off its 52-week high and below both moving averages, what business or sector developments — credit-cost trends, RBI rate actions, AUM growth — are being reflected in this repricing?
Peer comparison: Banking
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| SUNDARMFIN | Sundaram Finance Ltd.You're viewing | 24.6 | — | 50 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.8 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.4 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹4,608.10
SMA 50
₹4,851.74
SMA 200
₹4,835.85
RSI (14)
43.6 (neutral)
From 52w high
-18.3%
1Y return
-7.2%
3M return
-14.1%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 377.0 is at the extreme end even for an NBFC; combined with only 1 FCF-positive year in available history and a rising debt trend, the balance sheet carries elevated leverage dependency that could be stress-tested sharply if credit costs rise.
- highROE is unreported and roeYearsAbove15 = 0 across the persistence window; consistencyScore of 28/100 and qualityScore of 50 ranked 3rd of 6 Banking peers indicate weak earnings durability relative to the sector.
- mediumPrice of Rs 4,608 is below both 50-DMA (Rs 4,852) and 200-DMA (Rs 4,836), down 7.2% over 12 months and 14.1% over 3 months, with an 18.3% drawdown from the 52-week high.
- lowOnly 2 news items captured (both neutral); sparse coverage limits sentiment signal quality. Analyst rating field is null across 9 analysts tracked, reducing consensus visibility.
Cross-section contradictions
- 5-year earnings CAGR of 18.8% and profit margin of 46.8% are robust figures, yet the stock is 18.3% below its 52-week high and has declined 7.2% over 12 months with no negative news catalyst visible in the data.
- Profit margin of 46.8% is high for a finance company yet consistencyScore of 28/100 suggests composite quality metrics do not regard the earnings profile as durable.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days