Sundaram Finance Share Price Prospects and Financials

Sundaram Finance's share price has shown a steady growth over the years, with a current market capitalization of over ₹20,000 crores.

The company's diversified business model, which includes finance, investment, and insurance services, has contributed to its stability and growth.

Sundaram Finance's net worth has consistently increased over the years, with a current net worth of over ₹10,000 crores.

The company's strong financials have enabled it to maintain a healthy dividend payout ratio, with a current dividend yield of around 6%.

Investing in Sundaram Finance requires careful consideration of various factors.

The MACD crossover above the signal line is a strength, indicating a potential buying opportunity.

However, it's worth noting that the promoter's decreasing shareholding is a weakness.

On the other hand, brokers' upgraded recommendations or target prices in the past three months present an opportunity.

But, MFs decreased their shareholding last quarter, which poses a threat.

Here's a summary of the key factors to consider:

Sundaram Finance has consistently shown rising profits, with a profit growth of 8.15% year-over-year. This growth rate is impressive, especially when compared to the industry average.

The company's net profit margin (NPM) has remained stable at 19.76% over the past few years. This indicates that Sundaram Finance has been able to maintain its pricing power and profitability despite the changing market conditions.

The return on capital employed (ROCE) has also been steadily increasing, from 8.43% in the previous year to 9.27% currently. This suggests that Sundaram Finance is generating more profits from its investments and is a good sign for shareholders.

Here are some key financial metrics for Sundaram Finance:

Sundaram Finance's operating revenue has been steadily increasing, from ₹1246 crore in June 2022 to ₹2156 crore in March 2024. The company's profit after tax has also shown a significant increase, from ₹257 crore in June 2022 to ₹406 crore in September 2024.

Rising profits are a great sign, but it's essential to consider the margins. In the case of Sundaram Finance, the profit growth has been impressive, with a 3-year CAGR of 7.22%. However, the net profit margin (NPM) has been relatively stable at 19.76%.

The debt-to-equity (D/E) ratio has increased, standing at 4.73, which might be a concern for some investors. However, the company's market capitalization is substantial, exceeding 250 crores.

Let's take a closer look at the profit growth and margins over the years.

As we can see, the profit growth has been steady, but the margins have remained consistent. This suggests that the company is efficiently managing its operations, but there might be some room for improvement in terms of profitability.

The return on capital employed (ROCE) has also been a concern, with a 3-year average of 8.66%. However, the ROCE has increased in the current year, standing at 9.27%. This indicates that the company is leveraging its capital more effectively.

It's essential to keep an eye on these metrics to understand the company's financial performance and make informed investment decisions.

Rising Book Value is a significant indicator of a company's financial health. Book Value, also known as Net Worth, has increased from ₹701.52 crore to ₹1032.77 crore over the last three years.

The percentage change in Book Value over the last three years is 47.5%. This indicates a steady growth in the company's net worth.

The company's Market Capitalization (Mcap) is ₹52223.8 crore, which is more than 5 times the Book Value. This suggests that the market is valuing the company's equity at a premium.

The Price-to-Book (P/B) ratio, which is the ratio of Market Capitalization to Book Value, is 34.92. This is a relatively high ratio, indicating that the market is expecting high growth from the company.

Here's a summary of the key statistics:

The company's Return on Equity (ROE) is 13.55%, which is a healthy indicator of its profitability.

Sundaram Finance's financial health is reflected in its balance sheet. The company's shareholder's funds have consistently increased over the years, reaching ₹11,078 crore in Mar 2024.

The company's total liabilities have also increased, reaching ₹64,231 crore in Mar 2024. However, this is not necessarily a cause for concern, as the company's total assets have also increased to ₹64,231 crore in Mar 2024.

Here's a breakdown of the company's current assets and liabilities:

The company's current assets have consistently been higher than its current liabilities, indicating a relatively stable financial position.

Book value is a key metric in financial analysis, and it's interesting to see how it's changing over time. Book value has risen significantly over the last three years, from 701.52 to 1032.77.

The book value has increased by 47.5% over the last three years. This is a notable trend, indicating that the company's net worth is growing.

The company's market capitalization is 52,223.8, which is a significant number. The price-to-earnings ratio is 34.92, which is a reasonable multiple for the industry.

Here are some key statistics on the company's book value:

The company's return on equity (ROE) is 13.55%, which is a good sign. The sales growth year-over-year is 32.71%, and the profit growth year-over-year is 8.15%.

Seasonality Analysis is a crucial aspect of financial analysis, and Sundaram Finance is no exception. 12 out of 25 years have given negative returns in January.

January seems to be a relatively unpredictable month for Sundaram Finance, with a maximum positive change of 28.95% in 2004 and a maximum negative change of -16.22% in 2011.

The average positive change in January is a moderate 8.28%, while the average negative change is a more significant -4.37%. This suggests that while there's potential for growth, there's also a risk of losses.

The average change in January is a relatively modest 1.95%. This indicates that the month's performance is generally stable, but with some volatility.

Here's a breakdown of January's performance:

These statistics provide valuable insights into Sundaram Finance's performance in January, and can help investors make informed decisions.

Growth Rates are a crucial aspect of any company's financial health. The data shows that Sales CAGR has been stagnant at 0% in the TTM period, but has seen significant growth in the past 1, 3, 5, and 10 years, with rates of 33%, 11%, 14%, and 6% respectively.

The company's Operating Profit CAGR has also mirrored Sales CAGR, with a 0% growth rate in the TTM period, but higher growth rates in the past 1, 3, 5, and 10 years, at 33%, 11%, 15%, and 8% respectively.

On the other hand, PAT CAGR has been lower than Sales and Operating Profit CAGR, with growth rates of 11%, 12%, 7%, and 9% in the past 1, 3, 5, and 10 years respectively.

Here's a summary of the company's growth rates:

The company's Share Price CAGR has been consistently higher than its growth rates, with rates of 30%, 24%, 23%, and 14% in the past 1, 3, 5, and 10 years respectively, indicating a strong market performance.

Cash Flow is a vital aspect of any business, and analyzing it can provide valuable insights into a company's financial health. Sundaram Finance's cash flow has been quite volatile over the years, with a net cash inflow of 213 crore in March 2014.

The company's cash flow from operating activities has been inconsistent, ranging from a net outflow of 1430 crore in March 2015 to a net inflow of 1781 crore in March 2022. In fact, in March 2015, the company experienced a significant net outflow of 1430 crore, which is a stark contrast to the net inflow of 1781 crore in March 2022.

Cash flow from investing activities has also been a concern, with a net outflow of 1182 crore in March 2017. However, in March 2020, the company experienced a net inflow of 9 crore from operating activities.

Here's a breakdown of Sundaram Finance's cash flow from different activities over the years:

In conclusion, Sundaram Finance's cash flow has been a mixed bag, with both positive and negative trends over the years. By analyzing these trends, investors and analysts can gain a better understanding of the company's financial health and make informed decisions.