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

SUNDARMFIN is projected to see lower revenues than in the previous year, a trend that usually concerns investors. Declining revenues often harm a company's profitability, leading investors to exercise caution as they weigh the potential risks of continued financial downturns.

Financial Ratios:

currentRatio 7.799000
forwardPE 25.227983
debtToEquity 377.039000
earningsGrowth 0.119000
revenueGrowth 0.146000
grossMargins 0.883840
operatingMargins 0.586430
trailingEps 179.130000
forwardEps 65.160000

SUNDARMFIN's current ratio of 7.799 indicates strong liquidity, meaning the company can comfortably meet its short-term debt obligations. This financial position reflects SUNDARMFIN's ability to use its cash reserves and current assets to cover liabilities without facing any cash flow issues.
SUNDARMFIN's Forward PE is in a reasonable range, indicating the stock is priced well relative to its earnings. The stock isn't overpriced, which leaves room for future growth, making it an attractive option for investors seeking value and long-term gains.
SUNDARMFIN's high debt-to-equity ratio points to a heavily leveraged company, with more debt than equity in its capital structure. While this can boost growth, it increases financial vulnerability in times of economic difficulty.
Sundaram Finance Limited's positive earnings and revenue growth signal that the company is expected to expand its business. The company's increasing profits and sales reflect strong financial health, suggesting continued growth and success in the coming periods.
SUNDARMFIN's positive gross and operating margins reflect its profitability and efficiency. These metrics demonstrate the company's ability to manage costs effectively while generating strong revenue, highlighting its solid financial health and operational effectiveness.
SUNDARMFIN's lower forward EPS compared to its trailing EPS indicates that the company may be less profitable in the upcoming year. This suggests a potential slowdown in earnings, which could be a sign of weaker financial performance ahead.

Price projections:

Price projections for SUNDARMFIN
Price projections for SUNDARMFIN

Price projections for SUNDARMFIN have consistently been revised upward, suggesting that analysts are increasingly optimistic about the company's performance. This trend reflects a positive outlook for SUNDARMFIN's future.

Recommendation changes over time:

Recommendations trend for SUNDARMFIN
Recommendations trend for SUNDARMFIN


Analysts' recent buy bias toward SUNDARMFIN suggests the stock is gaining favor as a strong investment choice. This optimism could drive more investors to see SUNDARMFIN as a smart place to invest, further bolstering confidence in the company's long-term growth and potential returns.