SUNDARMFIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | SUNDARMFIN | Market Cap | 50,383 Cr. | Current Price | 4,535 ₹ | High / Low | 5,642 ₹ |
| Stock P/E | 27.7 | Book Value | 1,162 ₹ | Dividend Yield | 0.77 % | ROCE | 9.71 % |
| ROE | 14.7 % | Face Value | 10.0 ₹ | DMA 50 | 4,918 ₹ | DMA 200 | 4,909 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | 0.26 % | PAT Qtr | 453 Cr. | PAT Prev Qtr | 394 Cr. |
| RSI | 37.0 | MACD | -84.8 | Volume | 96,843 | Avg Vol 1Wk | 75,688 |
| Low price | 4,200 ₹ | High price | 5,642 ₹ | PEG Ratio | 1.44 | Debt to equity | 4.00 |
| 52w Index | 23.2 % | Qtr Profit Var | 29.7 % | EPS | 159 ₹ | Industry PE | 18.2 |
📊 SUNDARMFIN (Sundaram Finance Ltd.) presents moderate fundamentals with steady earnings growth and strong EPS (₹159). ROE of 14.7% reflects decent profitability, but ROCE at 9.71% is relatively weak compared to peers. The company’s high debt-to-equity ratio (4.00) raises leverage concerns. Valuations are stretched with a P/E of 27.7 versus industry average of 18.2, though PEG ratio of 1.44 suggests fair growth-adjusted valuation. Technical indicators show weakness with RSI at 37.0 and MACD at -84.8, signaling bearish momentum.
💰 Ideal Entry Price Zone: ₹4,400 – ₹4,500 (near support levels and valuation comfort).
📈 Exit / Holding Strategy: Hold for 2–4 years; consider partial profit booking near ₹5,100–₹5,200 resistance. Long-term holding requires improvement in ROCE and debt reduction.
✅ Positive
- EPS of ₹159 supports strong earnings base.
- Quarterly PAT growth of 29.7% (₹453 Cr vs ₹394 Cr).
- ROE of 14.7% indicates decent profitability.
- DII holdings increased by 0.26%, showing domestic investor confidence.
⚠️ Limitation
- ROCE at 9.71% is relatively weak.
- High debt-to-equity ratio of 4.00 raises leverage risks.
- Stock P/E (27.7) above industry average (18.2).
- RSI (37.0) and MACD (-84.8) show weak technical momentum.
- FII holdings decreased by 0.16%, showing reduced foreign interest.
📉 Company Negative News
- Weak technical indicators with RSI below 40 and bearish MACD.
- High leverage compared to peers.
📈 Company Positive News
- Strong quarterly earnings growth and EPS stability.
- Domestic institutional investors increasing stake.
- Price support near 200 DMA (₹4,909).
🏭 Industry
- NBFC sector trading at industry PE of 18.2, offering moderate valuation levels.
- Sector supported by credit demand and retail financing growth.
🔎 Conclusion
SUNDARMFIN is a moderate candidate for long-term investment. Entry near ₹4,400–₹4,500 offers better risk-reward. Hold for 2–4 years with profit booking near ₹5,100–₹5,200 resistance. While earnings growth and ROE are positives, high leverage and weak technical momentum limit upside potential. Improvement in ROCE and debt reduction are key for sustained long-term performance.