SUNDARMFIN - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.6

📊 Analysis Summary

SUNDARMFIN (Sundaram Finance) is a fundamentally strong NBFC with impressive earnings growth and solid ROE. However, its technical indicators are weak, making it a less favorable candidate for swing trading at the moment. The stock is trading below its 50 DMA, and momentum indicators suggest bearish sentiment.

✅ Strengths

EPS of ₹169: Strong earnings base.

ROE (15.3%): Healthy equity efficiency.

Quarterly Profit Growth (+81.4%): Strong earnings momentum.

Book Value (₹1,188): Indicates solid asset backing.

Volume Surge: Current volume (83.9K) vs 1-week average (41.5K) — rising interest.

DII Buying (+0.28%): Domestic institutions showing support.

⚠️ Weaknesses

RSI at 33.5: Weak momentum, nearing oversold.

MACD Negative (-21.5): Strong bearish signal.

Trading Below 50 DMA (₹5,035): Short-term downtrend.

Debt-to-Equity (4.63): High leverage typical of NBFCs, but adds risk.

FII Selling (-0.19%): Foreign investors reducing exposure.

P/E (28.4) > Industry PE (25.2): Slightly overvalued.

PEG Ratio (1.70): Moderately expensive relative to growth.

52w Index at 56.2%: Mid-range — not showing strong relative strength.

📈 Optimal Entry Price

Buy Zone: ₹4,600–₹4,650 Near recent support — wait for RSI to rise above 40 or MACD to flatten before entering.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹5,000–₹5,100 Near 50 DMA and short-term resistance.

Stop Loss: ₹4,500 Below recent support — exit if bearish momentum continues.

🧠 Final Thoughts

SUNDARMFIN is a fundamentally solid but technically weak swing trade candidate. Traders should wait for momentum confirmation before entering. If already holding, consider exiting near the 50 DMA unless technicals improve.

Would you like to compare it with other NBFCs like Bajaj Finance or Muthoot Finance for stronger setups?

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