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SUNDARMFIN - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.1

Last Updated Time : 24 May 26, 10:34 pm

Technical Rating: 3.1

Stock Code SUNDARMFIN Market Cap 50,035 Cr. Current Price 4,501 ₹ High / Low 5,642 ₹
Stock P/E 27.5 Book Value 1,162 ₹ Dividend Yield 0.78 % ROCE 9.71 %
ROE 14.7 % Face Value 10.0 ₹ DMA 50 4,773 ₹ DMA 200 4,866 ₹
Chg in FII Hold -0.16 % Chg in DII Hold 0.26 % PAT Qtr 453 Cr. PAT Prev Qtr 394 Cr.
RSI 39.3 MACD -82.7 Volume 45,582 Avg Vol 1Wk 52,336
Low price 4,200 ₹ High price 5,642 ₹ PEG Ratio 1.43 Debt to equity 4.00
52w Index 20.9 % Qtr Profit Var 29.7 % EPS 159 ₹ Industry PE 18.7

📊 Chart Analysis: SUNDARMFIN is trading at ₹4,501, below both the 50 DMA (₹4,773) and 200 DMA (₹4,866), indicating short-term weakness. RSI at 39.3 suggests the stock is approaching oversold territory. MACD at -82.7 confirms bearish momentum. Bollinger Bands show price near the lower band, reflecting selling pressure. Current volume (45.5K) is slightly below the 1-week average (52.3K), indicating reduced participation.

📈 Momentum Signals: Short-term momentum is negative, but RSI hints at potential rebound if support holds. MACD remains bearish, so caution is advised.

💹 Support & Resistance: Strong support lies near ₹4,200 (recent low). Immediate resistance is at ₹4,773 (50 DMA) and ₹4,866 (200 DMA). Optimal entry zone: ₹4,350–₹4,450. Exit zone: ₹4,750–₹4,850.

🔄 Trend Status: The stock is currently consolidating downward with potential reversal signs if support near ₹4,200 holds.


Positive

  • ✅ EPS of ₹159 supports valuation strength.
  • ✅ ROE of 14.7% and ROCE of 9.71% show decent capital efficiency.
  • ✅ Dividend yield of 0.78% provides steady returns.
  • ✅ PAT improved sequentially from ₹394 Cr. to ₹453 Cr.

Limitation

  • ⚠️ Current price below both 50 DMA and 200 DMA, showing weak technical strength.
  • ⚠️ Debt-to-equity ratio of 4.00 indicates high leverage risk.
  • ⚠️ PEG ratio of 1.43 suggests valuation is not cheap relative to growth.

Company Negative News

  • 📉 FII holdings decreased by -0.16%, showing reduced foreign investor interest.
  • 📉 Stock trading at only 20.9% of its 52-week index, reflecting underperformance.

Company Positive News

  • 📈 DII holdings increased by 0.26%, showing domestic investor confidence.
  • 📈 Sequential profit growth of 29.7% highlights improving performance.

Industry

  • 🏦 NBFC sector trading at industry P/E of 18.7, lower than SUNDARMFIN’s P/E of 27.5, suggesting premium valuation.
  • 🏦 Sector supported by rising credit demand and financial inclusion initiatives.

Conclusion

📌 SUNDARMFIN is consolidating downward, trading below key moving averages with bearish MACD. Entry around ₹4,350–₹4,450 with exit near ₹4,750–₹4,850 offers a cautious setup. Fundamentals show strong EPS and improving profits, but high leverage and premium valuation are concerns. The stock may stabilize if support near ₹4,200 holds.

For deeper insights, you could explore a NBFC sector outlook or compare SUNDARMFIN with peers through a valuation comparison.

Technical Analysis
Fundamental Analysis

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