Sundaram Finance Ltd

About Sundaram Finance Ltd

Sundaram Finance Ltd. is a leading Indian Non-Banking Financial Company (NBFC) with a strong focus on commercial vehicle financing. It offers a diversified suite of financial products including vehicle finance, equipment finance, home loans, and asset management, serving retail and institutional clients across India and maintaining a conservative, customer-centric approach.

Key Financial Ratios of Sundaram Finance Ltd

• P/E Ratio (TTM): Price to Earnings ratio shows how much an investor pays for every rupee of the company's earnings. Sundaram Finance Ltd's P/E ratio (TTM) is 27.50, compared to the industry median of 20.55 and large cap median of 26.80.

• P/B Ratio: Price to Book ratio compares a company's market price to its book value per share. Sundaram Finance Ltd's P/B ratio is 3.39, compared to the industry median of 1.24 and large cap median of 3.51.

• P/S Ratio: Price to Sales ratio compares a company's market value to its total revenue. Sundaram Finance Ltd's P/S ratio is 5.13, compared to the industry median of 4.30 and large cap median of 5.59.

• PEG Ratio: PEG ratio adjusts the P/E ratio for expected earnings growth. Sundaram Finance Ltd's PEG ratio is 2.23.

• EV/EBITDA Ratio: This ratio compares a company's enterprise value to its earnings before interest, tax, depreciation, and amortization. Sundaram Finance Ltd's EV/EBITDA ratio is 15.44.

• Return on Equity (ROE): ROE measures how much profit a company generates from shareholders' invested capital. Sundaram Finance Ltd's ROE is 13.83%.

• Return on Assets (ROA): ROA measures how efficiently a company converts its assets into net profit. Sundaram Finance Ltd's ROA is 3.42%.

• Return on Capital Employed (ROCE): ROCE measures how efficiently a company generates profit from all the capital it employs. Sundaram Finance Ltd's ROCE is 49.86%.

• Operating Margin: Operating margin shows what percentage of revenue remains after covering operating expenses. Sundaram Finance Ltd's operating margin is 29.95%.

• Net Margin: Net margin shows what percentage of revenue converts into final net profit. Sundaram Finance Ltd's net margin is 20.99%.

• Current Ratio: The current ratio measures a company's ability to pay short-term liabilities using short-term assets. Sundaram Finance Ltd's current ratio is 59.53.

• Debt to Equity Ratio: This ratio shows the proportion of debt a company uses relative to shareholders' equity. Sundaram Finance Ltd's debt-to-equity ratio is 0.

• Interest Coverage Ratio: This ratio shows how easily a company can pay interest on its outstanding debt from its operating earnings. Sundaram Finance Ltd's interest coverage ratio is 1.57.

• Dividend Per Share (DPS): DPS shows the total dividend paid per share in the latest financial year. Sundaram Finance Ltd's DPS is ₹24.09.

• Earnings Per Share (EPS): EPS shows how much profit is allocated to each outstanding share. Sundaram Finance Ltd's EPS is 9.55.

(Source line: "Ratios as of 01 Sept 2026, based on last traded price of ₹4540.10. Data sourced from BSE/NSE Exchange Filings & Public Terminal Data.")

Key Facts

• Founded: 1954

• Headquarters: Chennai, Tamil Nadu

• Core Offerings: Vehicle Finance, Equipment Finance, Home Loans, Asset Management, General Insurance Distribution

• Stock Listing: NSE (SUNDARMFIN), BSE (590071)

• Promoter: T. V. Sundram Iyengar & Sons Private Limited / TVS Group

History of Sundaram Finance Ltd

1954: Incorporated by Shri T.S. Santhanam as a hire purchase finance company, focusing on commercial vehicle financing. 1961: Became a public limited company. 1970s-1980s: Expanded operations geographically and diversified into equipment leasing. 1990s: Expanded into new business areas like asset management (Sundaram Asset Management Company) and general insurance distribution. 2000s onwards: Continued to grow its vehicle finance portfolio, entered home finance (Sundaram Home Finance), and strengthened its position as a diversified financial services player, maintaining a significant market share in key segments.

Business Segments and Revenue Mix

• Vehicle Finance: Core business focused on financing commercial vehicles (trucks, buses), passenger cars, and farm equipment across India, serving individuals and fleet operators through a wide branch network.

• Home Finance: Offered through its subsidiary Sundaram Home Finance Ltd., providing housing loans for purchase, construction, and renovation of homes, primarily to retail customers.

• Asset Management: Managed by Sundaram Asset Management Company Ltd., offering a comprehensive range of mutual funds (equity, debt, hybrid) and portfolio management services to retail and institutional investors.

Key Personnel

Rajiv C Lochan: Managing Director. Appointed as MD effective April 1, 2024, he previously served as Director - Strategy, contributing significantly to the company's strategic growth initiatives.

Subsidiaries and Associate Companies

• Sundaram Home Finance Ltd.

• Sundaram Asset Management Company Ltd.

• Sundaram Business Services Ltd.

• Sundaram Insurance Broking Ltd.

• Sundaram Alternate Assets Ltd.

Corporate Actions

1:1 bonus issue in 2017. Sundaram Asset Management acquired BNP Paribas Asset Management India Private Limited's equity and debt assets in 2020.

References

1. Sundaram Finance Ltd. Annual Report 2023-24
2. NSE/BSE Filings (Quarterly Results, Investor Presentations)
3. Company Website (www.sundaramfinance.in)