Sundaram Finance Ltd (SUNDARMFIN) — share price & stock analysis

Market cap

₹50,762 Cr

P/BV

3.41×

ROE

15.0%

vs own 10-yr valuation

55th pctile

Book value / share

₹1,341

EPS (TTM)

₹190

10-yr median P/BV

3.3×

Revenue (FY26)

₹9,852 Cr

Profit after tax (FY26)

₹2,059 Cr

Weinstein stage

Stage 4 (8 weeks)

Data as of

1 July 2026

2 of the 5 things we track are currently moving the right way — most of the dashboard is turning up.

Where the levels actually stand: ROE 15% — a genuinely good bank; GNPA 2.0% — workable, not pristine; the spread is near its 13-year low. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, lending and bad loans count double.

The business grew faster than the stock

Since May 2016, earnings per share grew 343% while the stock is up 262%. The business has outrun its own share price.pricettm_eps

When profits grow faster than the price, the stock quietly gets cheaper while doing better — the market hasn’t fully caught up.

Today’s P/BV of 3.4× is the middle of its own range against its own 10-year history (55th percentile) — neither a bargain nor a stretch, by its own standards.pb_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots; between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/BV — what the market pays per rupee of book value; the dotted line is its long-run median (3.3×).

The price is in a downtrend — fighting it is expensive

Price trends have a life cycle: they base (1), advance (2), top out (3) and decline (4). This chart is in Stage 4: declining — 8 weeks so far, confirmed.stage

The price is below its falling 200-day average — history says most of the damage in stocks happens here. Cheap can get cheaper in Stage 4.dma_200

Trailing NIFTY 500 for 15 weeks — relative strength is the market’s live opinion, and right now it is against it.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Up in 10 of 12 years — the long arc of a compounder

Over 12 years, income went from ₹4,107 Cr to ₹9,852 Cr (about 8% a year), and profit from ₹650 Cr to ₹2,059 Cr.revenuenet_profit

Margins gave up 6.2 points along the way — growth bought at a price.revenue−interest_expense

Interest income grew 13% — steady, not spectacular

Mar 26 income was ₹2,560 Cr, up 13% on a year ago. A bank grows by lending more and charging well — this line is both together.revenue

The squeeze is easing — the spread bottomed at 50% and is mending

Of every ₹100 of interest the bank earns, ₹47 goes straight out as interest on deposits and borrowings. It keeps ₹53 — up 2 points from a year ago.revenueinterest_expense

The visible arc: squeezed from 53% down to 50% (Jun 24) as deposits repriced faster than loans, and recovering since. The direction matters more than the level now.interest_expense

Bad loans are healing — from a worst of 3.0% (Mar 23) to 2.0%

₹2.0 of every ₹100 lent is currently stuck with borrowers who’ve stopped paying — down from ₹3.0 at the Mar 23 worst. After the money already set aside, the true exposure is 1.1%.gross_npa_pctnet_npa_pct

Falling bad loans still help — less new money needs setting aside — but this year’s profit growth is coming from the lending engine itself (interest income), not from provision releases. The healing cleans the book; the growth is earned.gross_npa_pctrevenue

Profit is flat

Mar 26 profit was ₹554 Cr, up 0% on last year — earnings per share of ₹49.88.net_profiteps

Where the growth comes from matters: this year it is the lending engine — net interest income — doing the lifting, not one-off provision releases. That is the more durable kind.revenue

Priced mid-range against its own history

Today you pay ₹3.41 for every ₹1 of book value, against a long-run median of ₹3.30. It has traded cheaper than this only 55% of the time since 2016.pb_ratio

The owners aren’t moving

Promoters hold 37.2%, essentially unchanged. Foreign funds own 19.0%, domestic funds 7.7%.promoters_pctfiis_pctdiis_pct

Institutions buying while the story develops is the market’s quiet vote of confidence — they meet management, you don’t.

Meanwhile domestic funds have been the sellers — from 16.9% to 7.7% over the window. Someone on the other side of the table disagrees; both sides count.diis_pct

Strong on the data — worth the deeper look if the story keeps its promises

The numbers lean positive, and the price hasn’t fully caught up with the improvement.

Best thing in the data: bad loans improving (2.5% → 2.0%).gross_npa_pct

One dissent worth hearing: our technicals lens reads negative — “extended death detected. momentum accelerating (1M: 2.1%)”. When a lens disagrees with the committee, it is usually pointing at the thing that breaks first.

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data