Sundaram Finance Limited (SUNDARMFIN) AI Stock Analysis

1 Followers

Sundaram Finance Limited

(NSE:SUNDARMFIN)

Select Model

Rating:59Neutral

Price Target:INR 4,176.00▼(-3.85% Downside)

Action:reiterated

Date:09/16/26

The score is held back primarily by high balance-sheet leverage and historically unstable cash flow despite a recent rebound, which offsets otherwise strong profitability and steady revenue growth. Technicals are moderately supportive (price above key short/mid-term averages with positive MACD), while valuation is neutral with a modest dividend yield.

Positive Factors

Steady Revenue GrowthSustained revenue expansion indicates continuing demand for Sundaram Finance’s lending and related financial services. If maintained, this growth can enlarge the earning asset base, support operating scale, and provide a durable foundation for profit generation over the next several quarters.

Negative Factors

Elevated and Rising LeverageHigh and recently rising leverage increases sensitivity to funding conditions, interest costs, and credit-cycle weakness. It can magnify returns in favorable periods, but also reduces financial flexibility and leaves earnings and capital more exposed when asset quality or liquidity conditions deteriorate.

Sundaram Finance Limited (SUNDARMFIN) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 478.25B
Dividend Yield: 0.92%
Average Volume (3M): 5,685
Price to Earnings (P/E): 21.3
Beta (1Y): 0.98
Revenue Growth: 13.61%
EPS Growth: 14.02%
Country: India
Employees: 5,344
Sector: General
Sector Strength: 55
Industry: Financial - Credit Services

Sundaram Finance Limited Business Overview & Revenue Model

Company Description

Sundaram Finance Limited is an established Indian financial institution that delivers a wide array of services. It mobilizes capital through various deposit options, including fixed, cumulative, and non-resident Indian schemes. The company offers fin...

How the Company Makes Money

Sundaram Finance primarily makes money through lending and associated financial services. Its key earnings drivers typically include: (1) Net interest income from lending: The company raises funds (e.g., via market borrowings and other funding source...

Sundaram Finance Limited Financial Statement Overview

Summary

Income statement strength (score 78) reflects steady revenue growth and consistently strong profitability, but this is tempered by elevated leverage on the balance sheet (score 52, debt-to-equity ~3.4x–4.1x and rising most recently) and volatile cash flow quality (score 41, multi-year negative operating/free cash flow followed by a sharp 2026 rebound).

Income Statement

78Positive

Balance Sheet

52Neutral

Cash Flow

41Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	97.92B	98.16B	83.38B	69.78B	53.21B	50.30B
Gross Profit	45.65B	44.53B	42.14B	36.28B	29.53B	27.82B
EBITDA	32.10B	29.80B	26.70B	21.44B	18.50B	15.18B
Net Income	20.59B	20.59B	18.79B	14.36B	13.28B	11.73B
Balance Sheet
Total Assets	857.95B	857.95B	753.37B	642.76B	560.66B	481.54B
Cash, Cash Equivalents and Short-Term Investments	15.20B	15.20B	21.32B	15.03B	11.45B	7.15B
Total Debt	607.63B	607.63B	524.06B	443.52B	358.81B	302.07B
Total Liabilities	709.02B	709.02B	621.40B	531.98B	434.27B	370.65B
Stockholders Equity	148.94B	148.94B	131.97B	110.78B	99.10B	87.95B
Cash Flow
Free Cash Flow	-30.89B	33.56B	-90.31B	-85.69B	-65.30B	15.86B
Operating Cash Flow	-30.64B	34.19B	-89.85B	-84.86B	-65.04B	18.62B
Investing Cash Flow	-11.99B	-100.83B	9.31B	889.00M	6.68B	-16.78B
Financing Cash Flow	41.55B	74.78B	78.21B	87.54B	58.90B	-2.00B

Sundaram Finance Limited Technical Analysis

Technical Analysis SentimentNeutral

Last Price4343.10

Price Trends

50DMA4347.81Negative

100DMA4444.81Negative

200DMA4633.78Negative

Market Momentum

MACD1.68Negative

RSI58.53Neutral

STOCH93.34Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUNDARMFIN, the sentiment is Neutral. The current price of 4343.10 is above the 20-day moving average (MA) of 4110.21, below the 50-day MA of 4347.81, and below the 200-day MA of 4633.78, indicating a neutral trend. The MACD of 1.68 indicates Negative momentum. The RSI at 58.53 is Neutral, neither overbought nor oversold. The STOCH value of 93.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SUNDARMFIN.

Sundaram Finance Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SUNDARMFIN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:BAJFINANCE	75Outperform	INR 6.92T	32.02	―	0.54%	18.79%	18.22%
IN:LTF	68Neutral	INR 707.32B	20.31	―	0.99%	17.30%	26.39%
IN:CHOLAFIN	60Neutral	INR 1.60T	25.29	―	0.11%	20.67%	32.42%
IN:SUNDARMFIN	59Neutral	INR 491.32B	21.27	―	0.92%	13.61%	14.02%
IN:SHRIRAMFIN	58Neutral	INR 2.36T	16.16	―	1.29%	10.10%	14.42%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:M&MFIN	48Neutral	INR 396.20B	11.08	―	4.09%	14.94%	36.58%

* General Sector Average

Performance Comparison

IN:SUNDARMFIN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SUNDARMFIN	Sundaram Finance Limited	4343.10	-386.50	-8.17%
IN:BAJFINANCE	Bajaj Finance Limited	1115.20	95.02	9.31%
IN:CHOLAFIN	Cholamandalam Investment and Finance Co. Ltd.	1843.85	146.04	8.60%
IN:LTF	L&T Finance Ltd	277.00	-19.35	-6.53%
IN:M&MFIN	Mahindra & Mahindra Financial Services Ltd.	286.90	-20.34	-6.62%
IN:SHRIRAMFIN	Shriram Finance Limited	971.90	166.09	20.61%

Sundaram Finance Limited Corporate Events

Sundaram Finance Reports Exercise of Employee Stock Options Under ESOP Scheme

Sep 8, 2026

Sundaram Finance Limited has reported the exercise of employee stock options granted under its 2008 ESOP scheme. Two option holders have exercised a total of 30 options from Grant 15, originally issued in May 2023 and exercised on September 8, 2026.T...

Sundaram Finance Discloses Institutional Meeting with Max Life Insurance

Sep 1, 2026

Sundaram Finance Limited disclosed that its Managing Director, Rajiv C. Lochan, and Chief Financial Officer, M. Ramaswamy, held a one-to-one institutional investor meeting with Max Life Insurance to discuss the company’s overall performance, includin...

Sundaram Finance Reports Exercise of 20 ESOP Options Under 2008 Scheme

Aug 24, 2026

Sundaram Finance Limited reported that an employee has exercised 20 stock options granted in 2023 under its Sundaram Finance Employee Stock Option Scheme – 2008, designated as Grant 15. The company has initiated the transfer of corresponding equity s...

Sundaram Finance Completes Exercise of ESOP Grant 15

Aug 20, 2026

Sundaram Finance Limited has reported the exercise of 20 stock options under its Employee Stock Option Scheme – 2008, relating to Grant 15 issued in May 2023. The company has completed the transfer of corresponding equity shares from the Sundaram Fin...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 16, 2026

Sundaram Finance Limited AI Stock Analysis