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 may be wary of SUNDARMFIN as its revenues are expected to fall below the prior year's levels. A revenue decrease often leads to concerns about profitability, as it is likely to affect the company's bottom line, prompting investors to take a more cautious approach.

Financial Ratios:

currentRatio 7.527000
forwardPE 25.615957
debtToEquity 397.312000
earningsGrowth 1.064000
revenueGrowth 0.021000
grossMargins 0.882870
operatingMargins 0.623450
trailingEps 170.610000
forwardEps 65.160000

Sundaram Finance Limited's current ratio of 7.527, indicating that the company can meet its short-term debt obligations with ease. This high liquidity level is a positive sign, as Sundaram Finance Limited has enough cash and current assets to handle its immediate liabilities comfortably.
SUNDARMFIN's Forward PE is positioned well, reflecting a favorable balance between stock price and earnings. The stock isn't overpriced, offering room for growth and making it a potentially rewarding investment as its value has room to rise further.
Sundaram Finance Limited's elevated debt-to-equity ratio suggests that the company is using significant debt to finance its operations. This level of leverage can amplify financial risk, particularly if profitability decreases or external conditions become unfavorable.
SUNDARMFIN's positive gross and operating margins indicate a profitable and efficient business model. These metrics highlight the company's ability to generate income while controlling operational costs, reflecting strong financial performance.
Sundaram Finance Limited's forward EPS being lower than its trailing EPS suggests that the company is expected to see a decline in profitability. This signals that the company may face a challenging financial year ahead.

Price projections:

Price projections for SUNDARMFIN
Price projections for SUNDARMFIN



Recommendation changes over time:

Recommendations trend for SUNDARMFIN
Recommendations trend for SUNDARMFIN


Analysts have recently shown a sell bias for SUNDARMFIN, signaling a need for caution. Investors should not rely solely on this sentiment but instead consider a variety of market indicators to make more informed decisions about the stock's future prospects and potential risks.