Sundaram Finance Limited (SUNDARMFIN) fair value: what the stock is really worth
As of Nov 9, 2026: fair value (intrinsic value) of Sundaram Finance Limited stock ₹2,440, price ₹4,228, that is 42.3% below the price, quality 54 out of 100. Rating: strongly overvalued. Calculated from audited financials with 13 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range ₹811.04 – ₹5,552 · fair‑value band ₹1,270 – ₹5,273 · the ₹4,228 price screens above the ₹2,440 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
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Sundaram Finance Limited, together with its subsidiaries, operates as a non-banking finance company in India. It accepts fixed, cumulative, and NRI deposits.
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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.
Stock analysis
Sundaram Finance Limited (SUNDARMFIN) currently trades at ₹4,228, while our model-based Fair Value estimate is ₹2,440, 42% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of ₹7,348 per share, and 3 of the 12 models we run sit above the ₹4,228 price.
Bear case: the Dividend Discount group reads lowest at ₹504.61, and 9 of the 12 models stay below the price. Data coverage for this calculation is high.
Scenario range: ₹1,270 (bear) to ₹5,273 (bull), the price of ₹4,228 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 54/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
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.
Key figures
Market cap ₹466B (≈ $5.0B) Mid · P/E ratio 20.7 · P/S ratio 9.31 · EPS (TTM) ₹203.98 · Dividend yield 0.9% · Net margin 45.1% · Return on equity 14.4% · Return on assets (EBIT) 3.2% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 70 out of 100 (low confidence).
What moves the price
The share trades about 24% below its 52-week high and 8% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −3% fair-value upside, at −42%, SUNDARMFIN screens richer than that median.
Fair Value models
Bear₹1,270Fair Value ₹2,440Bull₹5,273
Price ₹4,228 · Downside -42.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹102.02 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.99/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+17.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+22.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.6%
Start year 2021 (pandemic). Over 10 years: +6.9% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.4%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+13.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+12.1%
Dividend (yield on the price)0.9%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.12.1% vs 13.5%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.22% → 29%
Compare Sundaram Finance Limited with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Credit Services · 283 stocks
Beats the industry median on 5/14 measures
Overall it trails its industry peers.
Valuation
Quality Score54 · Above median
Fair Value upside−42.1% · Bottom 25%
Profitability
Return on equity (12 months)14.4% · Above median
Return on assets2.4% · Below median
Net margin (12 months)45.1% · Top 25%
Operating margin (12 months)58.7% · Above median
Growth and dividend
Revenue growth (quarter YoY)17.4% · Above median
Dividend yield (12 months)0.9% · Bottom 25%
Balance sheet
Debt / equity3.52× · Highest 25%
Valuation Multiplesvs Credit Services median · lower = cheaper
P/E (12 months)20.7× · Priciest 25%
P/B3.12× · Priciest 25%
P/S (12 months)9.31× · Priciest 25%
Price / free cash flow (fiscal year)13.8× · Pricier than median
EV/EBITDA32.7× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 59
FUTURE (revenue growth)87· sector 57
PAST (return on equity)58· sector 39
HEALTH (low debt)–
DIVIDEND (yield)18· sector 64
VALUE 0: the price sits above our fair-value range.
HEALTH: for banks, insurers and similar financial firms borrowed money is part of the business, so we do not rate debt here.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Sundaram Finance Limited (SUNDARMFIN) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of ₹2,440 versus a price of ₹4,228, about 42% lower (overvalued).
What is the fair value of SUNDARMFIN?
Our model-based fair value for Sundaram Finance Limited is ₹2,440 (as of Nov 7, 2026), built from audited fundamentals. The current price: ₹4,228.
What is the quality score of SUNDARMFIN?
Sundaram Finance Limited has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Sundaram Finance Limited (SUNDARMFIN)?
Our model-based price target is the fair value of ₹2,440 (as of Nov 7, 2026) from 13 valuation models. Cautious scenario ₹1,270, optimistic scenario ₹5,273. It is a calculation from audited fundamentals, not an analyst target.
What is the Sundaram Finance Limited stock forecast for 2026?
Our models put fair value at ₹2,440, about 42% lower versus a price of ₹4,228 (overvalued). Cautious scenario ₹1,270, optimistic scenario ₹5,273. The calculation is refreshed regularly with new filings.
What is the revenue of Sundaram Finance Limited (SUNDARMFIN)?
Sundaram Finance Limited reported trailing-twelve-month revenue of about ₹49.9B (latest available figure, as of Nov 7, 2026).
Does Sundaram Finance Limited pay a dividend?
Sundaram Finance Limited currently shows a dividend yield of 0.88% relative to its recent price (as of Nov 7, 2026).
How much is the dividend of Sundaram Finance Limited (SUNDARMFIN) and when is the ex-dividend date?
Sundaram Finance Limited pays a dividend of ₹37.00 per share a year, a dividend yield of 0.9%. The last ex-dividend date was Jul 6, 2026. A dividend has been paid every year since at least 2002. The payout ratio is 18.1% of earnings. Our assessment: Low payout. A low payout ratio: the dividend takes at most 60 % of earnings. Whether free cash flow covers it as well, we cannot see for this company.
What is the intrinsic value of Sundaram Finance Limited (SUNDARMFIN)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Sundaram Finance Limited it is ₹2,440 per share (as of Nov 7, 2026), against a price of ₹4,228. It is the blended result of 13 valuation models in 7 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit).
Is Sundaram Finance Limited stock overvalued or undervalued in 2026?
As of Nov 7, 2026, SUNDARMFIN trades above its calculated fair value: price ₹4,228, fair value ₹2,440, a gap of about −42% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SUNDARMFIN?
No. The price is what the market pays today (₹4,228); the fair value is what the company's own numbers justify (₹2,440). For Sundaram Finance Limited the two are ₹1,788 per share apart. That gap is exactly why we show both numbers side by side.
How much is Sundaram Finance Limited worth?
The market values Sundaram Finance Limited at about ₹466B (market capitalisation, as of Nov 7, 2026). Per share that is ₹4,228; our models calculate a fair value of ₹2,440 per share.
What do the bullish and bearish scenarios say about SUNDARMFIN?
Our models span a range for Sundaram Finance Limited: cautious scenario ₹1,270, base ₹2,440, optimistic ₹5,273 per share (as of Nov 7, 2026, price ₹4,228). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SUNDARMFIN?
Sundaram Finance Limited trades at a price-to-earnings ratio of 20.7 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹2,440 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings: 22.4. Other multiples: P/B 3.1, P/S 9.3, EV/EBITDA 32.7.
How solid is the balance sheet of Sundaram Finance Limited (SUNDARMFIN)?
Balance-sheet figures for Sundaram Finance Limited (as of Nov 7, 2026): return on equity 14.4%, debt of 3.52 per unit of equity. They feed the Quality Score of 54/100, which measures business quality independently of the share price.
How far is SUNDARMFIN from its 52-week high?
Sundaram Finance Limited trades at ₹4,228, about 24% below its 52-week high of ₹5,552 and 8% above the low of ₹3,902 (as of Nov 9, 2026). Distance from the high says nothing about value: that is what the fair value of ₹2,440 is for.
Which stocks are comparable to Sundaram Finance Limited?
From the same area (Financial Services) we also value Visa Inc, Mastercard Incorporated, American Express Company, Capital One Financial Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Sundaram Finance Limited stock attractive at the current price?
The data as of Nov 7, 2026: price ₹4,228, calculated fair value ₹2,440 (−42%), Quality Score 54/100, from 13 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SUNDARMFIN calculated?
We run Sundaram Finance Limited through 13 models from 7 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit. Every model gets the same audited fundamentals; the fair value of ₹2,440 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Sundaram Finance Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Sundaram Finance Limited (SUNDARMFIN)?
The closing price on Nov 9, 2026 was ₹4,228. Our model-based fair value is ₹2,440, about 42% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Sundaram Finance Limited right now?
The model range is unusually wide (₹1,270 to ₹5,273). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Sundaram Finance Limited (SUNDARMFIN) come from?
Earnings per share at Sundaram Finance Limited grew +12.7 % a year from 2015 to 2026. Broken into its drivers: revenue per share +6.1 %, EBIT margin +5.7 %, tax rate +1.3 %, residual (interest, one-offs) −0.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Sundaram Finance Limited
How large is the market capitalisation of Sundaram Finance Limited (SUNDARMFIN)?
The market capitalisation of Sundaram Finance Limited is ₹466B (≈ $5.0B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Sundaram Finance Limited (SUNDARMFIN)?
The price-to-sales ratio of Sundaram Finance Limited is 9.31 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Sundaram Finance Limited (SUNDARMFIN)?
Earnings per share at Sundaram Finance Limited are ₹203.98 (price ÷ EPS = P/E 20.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Sundaram Finance Limited (SUNDARMFIN)?
The dividend yield of Sundaram Finance Limited is 0.9% (payout 18.1%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Sundaram Finance Limited (SUNDARMFIN)?
The net margin of Sundaram Finance Limited is 45.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Sundaram Finance Limited (SUNDARMFIN)?
The return on equity (ROE) of Sundaram Finance Limited is 14.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Sundaram Finance Limited (SUNDARMFIN)?
On an EBIT basis the return on assets of Sundaram Finance Limited is 3.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Sundaram Finance Limited (SUNDARMFIN)?
The operating margin of Sundaram Finance Limited is 58.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Sundaram Finance Limited (SUNDARMFIN)?
Revenue at Sundaram Finance Limited is growing +17.4% versus a year earlier (3y avg +22.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Sundaram Finance Limited (SUNDARMFIN)?
Earnings per share at Sundaram Finance Limited are growing +5.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Sundaram Finance Limited (SUNDARMFIN) generate?
The free cash flow of Sundaram Finance Limited is ₹33.6B (fiscal year 2026). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Sundaram Finance Limited (SUNDARMFIN) carry?
The net debt of Sundaram Finance Limited is ₹592B (fiscal year 2026, ≈ 17.7 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 7, 2026