SUNDARMFIN - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.3
| Stock Code | SUNDARMFIN | Market Cap | 53,456 Cr. | Current Price | 4,808 ₹ | High / Low | 5,642 ₹ |
| Stock P/E | 29.4 | Book Value | 1,162 ₹ | Dividend Yield | 0.73 % | ROCE | 9.71 % |
| ROE | 14.7 % | Face Value | 10.0 ₹ | DMA 50 | 5,214 ₹ | DMA 200 | 4,956 ₹ |
| Chg in FII Hold | 0.07 % | Chg in DII Hold | 0.06 % | PAT Qtr | 453 Cr. | PAT Prev Qtr | 394 Cr. |
| RSI | 32.7 | MACD | -79.2 | Volume | 55,435 | Avg Vol 1Wk | 76,496 |
| Low price | 4,200 ₹ | High price | 5,642 ₹ | PEG Ratio | 1.53 | Debt to equity | 4.00 |
| 52w Index | 42.2 % | Qtr Profit Var | 29.7 % | EPS | 159 ₹ | Industry PE | 16.4 |
Analysis: Sundaram Finance (SUNDARMFIN) shows limited swing trading potential at present. The RSI at 32.7 indicates oversold conditions, but the MACD (-79.2) reflects strong bearish momentum. The current price (₹4,808) is below the 50 DMA (₹5,214) and 200 DMA (₹4,956), suggesting short-term weakness. Quarterly profit growth (+29.7%) and EPS of ₹159 are positives, but the high debt-to-equity ratio (4.00) and elevated P/E (29.4 vs. industry 16.4) raise caution. Long-term fundamentals are strong, but near-term technicals remain weak.
Optimal Entry Price: Around ₹4,700–4,750, closer to support levels and oversold RSI zone.
Exit Strategy (if already holding): Consider exiting near ₹5,400–5,600 if momentum recovers, or cut losses if price falls below ₹4,600.
✅ Positive
- Quarterly profit growth of 29.7% (₹453 Cr vs. ₹394 Cr).
- EPS of ₹159 indicates strong earnings power.
- ROE of 14.7% shows decent profitability.
- FII and DII holdings both increased slightly, signaling investor confidence.
⚠️ Limitation
- High debt-to-equity ratio (4.00) increases financial risk.
- Stock P/E (29.4) is significantly higher than industry average (16.4).
- ROCE at 9.71% is relatively weak compared to peers.
- Price below both 50 DMA and 200 DMA reflects bearish trend.
📰 Company Negative News
- High leverage raises concerns about financial stability.
- Bearish technical indicators (MACD negative, RSI oversold).
🌟 Company Positive News
- Strong quarterly profit growth supports fundamentals.
- EPS of ₹159 highlights earnings strength.
- Institutional investors (FII and DII) increased holdings slightly.
🏦 Industry
- NBFC sector PE (16.4) is lower than Sundaram Finance’s PE (29.4), making the stock relatively expensive.
- Industry supported by rising credit demand, though interest rate environment adds pressure.
📌 Conclusion
Sundaram Finance is a weak candidate for swing trading at current levels due to bearish technicals and high valuation. Entry near ₹4,700–4,750 offers better risk-reward. Exit near ₹5,400–5,600 if momentum recovers, or below ₹4,600 to protect capital.