Sundaram Finance Limited
Sundaram Finance Limited Fundamental Analysis
Sundaram Finance Limited (SUNDARMFIN.NS) shows moderate financial fundamentals with a PE ratio of 23.19, profit margin of 21.03%, and ROE of 14.60%. The company generates $97.9B in annual revenue with moderate year-over-year growth of 5.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -385.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SUNDARMFIN.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakSUNDARMFIN.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateSUNDARMFIN.NS shows balanced valuation metrics.
Growth Score
ExcellentSUNDARMFIN.NS delivers strong and consistent growth momentum.
Financial Health Score
WeakSUNDARMFIN.NS carries high financial risk with limited liquidity.
Profitability Score
WeakSUNDARMFIN.NS struggles to sustain strong margins.
Key Financial Metrics
Is SUNDARMFIN.NS Expensive or Cheap?
P/E Ratio
SUNDARMFIN.NS trades at 23.19 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SUNDARMFIN.NS's PEG of 2.43 indicates potential overvaluation.
Price to Book
The market values Sundaram Finance Limited at 3.21 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -3.58 times EBITDA. This is generally considered low.
How Well Does SUNDARMFIN.NS Make Money?
Net Profit Margin
For every $100 in sales, Sundaram Finance Limited keeps $21.03 as profit after all expenses.
Operating Margin
Core operations generate 31.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.60 in profit for every $100 of shareholder equity.
ROA
Sundaram Finance Limited generates $2.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sundaram Finance Limited generates limited operating cash flow of $-30.64B, signaling weaker underlying cash strength.
Free Cash Flow
Sundaram Finance Limited generates weak or negative free cash flow of $-30.89B, restricting financial flexibility.
FCF Per Share
Each share generates $-280.31 in free cash annually.
FCF Yield
SUNDARMFIN.NS converts -6.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How SUNDARMFIN.NS Stacks Against Its Sector Peers
| Metric | SUNDARMFIN.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.19 | 19.08 | Worse (Expensive) |
| ROE | 14.60% | 799.00% | Weak |
| Net Margin | 21.03% | -7710.00% (disorted) | Strong |
| Debt/Equity | 4.08 | 2.40 | Weak (High Leverage) |
| Current Ratio | 0.00 | 560.55 | Weak Liquidity |
| ROA | 2.40% | -23972.00% (disorted) | Weak |
SUNDARMFIN.NS outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sundaram Finance Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1166.26%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
143.16%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
929.12%
Industry Style: Value, Dividend, Cyclical
High Growth