Overall Fundamental outlook

Business Operations:

Sector: Financial Services
Industry: Credit Services

Sundaram Finance Limited, together with its subsidiaries, operates as a non-banking finance company in India. It accepts fixed, cumulative, and NRI deposits. The company also offers finance for new and used cars, new and used commercial vehicles, and new and used construction equipment; diesel finance for commercial vehicle operators and companies; tire and insurance finance; farm equipment finance for new/used tractors, harvesters, and farm implements; working capital, enterprise business, and machinery term loans, as well as channel finance; housing finance; and leasing services. In addition, it provides life insurance products comprising child, pension, whole-life, term, and investment plans; general insurance products, such as health, home, property, medical, and vehicle insurance products; mutual funds; and information technology, and business processing and support services. Further, the company offers a suite of investment management services, which include financial planning, asset allocation and execution, portfolio management, tax management, risk management, and estate management. Sundaram Finance Limited was incorporated in 1954 and is based in Chennai, India.

Revenue projections:

Revenue projections for SUNDARMFIN
Revenue projections for SUNDARMFIN

Investors are expected to be cautious with SUNDARMFIN, as its revenues are projected to fall compared to last year. A decline in revenue often results in a negative impact on profitability, prompting concerns about the company's financial stability and making investors more conservative in their approach.

Financial Ratios:

currentRatio 7.799000
forwardPE 26.862204
debtToEquity 377.039000
earningsGrowth 0.119000
revenueGrowth 0.146000
grossMargins 0.883840
operatingMargins 0.586430
trailingEps 179.050000
forwardEps 187.233340

Sundaram Finance Limited's current ratio of 7.799 shows that the company has ample resources to service its short-term debt. This indicates a solid financial position, as Sundaram Finance Limited can rely on its cash reserves and current assets to cover its immediate liabilities without strain.
SUNDARMFIN's Forward PE ratio suggests that the stock is priced appropriately in relation to its earnings. Not being overpriced, it offers room for growth, signaling potential upside for investors looking for a stock with reasonable valuation and growth potential.
SUNDARMFIN's high debt-to-equity ratio indicates a strong reliance on debt, meaning the company is heavily leveraged. This could increase financial risks if cash flow or earnings decline, making it more difficult for SUNDARMFIN to manage its debt obligations.
SUNDARMFIN's positive earnings and revenue growth signal the company's business is on track for further expansion. These strong financial trends suggest that SUNDARMFIN will continue to grow its operations, driven by increasing profits and revenue.
SUNDARMFIN's positive gross and operating margins reflect its ability to generate profits from operations. These margins demonstrate efficient cost control and profitability, indicating strong financial health for the company.
Sundaram Finance Limited's forward EPS surpassing its trailing EPS signals projected growth in profitability, with the company expected to perform better this year. This forecast suggests that Sundaram Finance Limited's earnings will improve compared to the previous financial year, highlighting optimism in its financial outlook.

Price projections:

Price projections for SUNDARMFIN
Price projections for SUNDARMFIN

The price of Sundaram Finance Limited has repeatedly been close to the lower limit of price projections. This trend suggests that the stock may be underperforming, raising concerns among investors about future performance.

Recommendation changes over time:

Recommendations trend for SUNDARMFIN
Recommendations trend for SUNDARMFIN


The analysts' recent buy bias for SUNDARMFIN indicates strong confidence in the stock's future performance. This could encourage more investors to view SUNDARMFIN as a worthwhile investment, positioning the company as a top choice for those seeking financial security and long-term growth opportunities.