Sundaram Finance Limited (SUNDARMFIN) Fair Value & Analysis

Financial Services · IN · Market cap ₹488B

A solid business, but screening 47% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (₹3,402). The favourable scenario is already priced in.
• Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
• A fairly wide model range (₹1,425 to ₹3,402) leaves room in how you read the outcome.
• For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range ₹811.04 – ₹5,552 · fair‑value band ₹1,425 – ₹3,402 · the ₹4,604 price screens above the ₹2,428 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Sundaram Finance Limited (SUNDARMFIN) currently trades at ₹4,604, while our model-based Fair Value estimate is ₹2,428, implying the stock looks roughly 47.3% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Sundaram Finance Limited generated revenue of ₹45.1B at a net margin of 45.7%. Revenue grew 10.0% year over year. It earns a return on equity of 14.7%. Net debt stands at ₹592B. Fundamentals as of Jul 19, 2026

Our scenario range runs from ₹1,425 (bear case) to ₹3,402 (bull case); at ₹4,604, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 18% below its 52-week high and 13% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -41% fair-value upside, at -47%, SUNDARMFIN screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Growth DCF (₹3,574) versus DCF Models (₹238.07). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Sundaram Finance Limited, together with its subsidiaries, operates as a non-banking finance company in India. It accepts fixed, cumulative, and NRI deposits.

Full company description

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; SME finance 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, it offers a suite of investment management services, which include asset allocation and execution, portfolio management, tax management, risk management, and estate management. The company was incorporated in 1954 and is based in Chennai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Sundaram Finance Limited reported revenue of ₹98.2B in FY2026 versus ₹50.3B in FY2022, a compound +18.2%/yr. Reported net income was ₹20.6B in FY2026, compounding +15.1%/yr from FY2022.

SUNDARMFIN screens 47% overvalued. Compare with Visa Inc →

Peer Group

Credit Services · 333 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Credit Services median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Explore undervalued stocks

More undervalued Financial Services stocks →

Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.