Sundaram Finance Ltd., incorporated in 1954, is a large capitalization company (having a market capitalization of Rs 20820.86 Crore) operating in the NBFC sector.
The main products/revenue segments of Sundaram Finance Ltd. includes interest, fee and commission income, dividends, leases, other services and collection of bad debts for the year ending March 31, 2021.
For the quarter ended 31-03-2022, the company reported consolidated total revenue of Rs 1294.57 Crore, up 0.37% from last quarter, total revenue of Rs 1289.80 Crore and down -3.26% compared to the same quarter last year. Total revenue of Rs 1338.14 Crore. The company reported net profit after tax of Rs 346.26 Crore last quarter.
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SUF has been cautious in building its loan portfolio during uncertain times and the brokerage believes that while this approach will help control asset quality stress, overall growth will be calibrated. Despite the ups and downs of the CV cycle, management’s credit caution has led to otherwise consistent performance in the past, resulting in strong performance ratios (ROA +2.2 %). He believes SUF’s well-diversified mix of secured loans, along with strong underwriting practices and a comfortable capital position, will support operational performance. It upgrades the rating from HOLD to BUY with a target price of Rs 2,195/share (based on SOTP valuation), implying a 20% upside from CMP.
The promoters held 38.49% of the company’s capital as of March 31, 2022, while the FIIs held 9.91% and the DIIs 14.27%.
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