Sundaram Finance - It’s A Marathon, Not A Sprint; Downgrade To Reduce: HDFC Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.Sundaram Finance Ltd. earnings beat estimates benefitting from higher other income, partly offset by higher provisioning. Assets under management growth was strong (+27% YoY), driven by non-medium ahd heavy commercial vehicles segments, particularly retail commercial vehicle (+55% YoY). Sundaram Finance’s product and geographic diversification approach to sustain its growth momentum and lift its margins has augured well in the past couple of years, driving superior operating performance. However, the softening CV and PV industry outlook, evident in the moderation of disbursements during H2 FY24 (+17% YoY versus 34% in H1 FY24) is likely to moderate AUM growth, going ahead. While Sundaram Finance remains a pristine franchise with steady growth and profitability metrics (core return on equity of ~17-18%), the sharp run-up in the stock (43% during the past 6 months) robs us of material upside from current levels. We downgrade to Reduce (from Add) with a revised SoTP-based target price of Rs 4,050 (standalone entity at 3.8 times Mar-26 adjusted book value per share; 15% discount to Cholamandalam Finance)..Click on the attachment to read the full report:.Sundaram Finance Q4 Results Review - Robust AUM Growth Sustained; Asset Quality Improved: IDBI Capital .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Sundaram Finance - It’s A Marathon, Not A Sprint; Downgrade To Reduce: HDFC Securities

Robust franchise; albeit valuations sprinting ahead of fundamentals

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Sundaram Finance - It’s A Marathon, Not A Sprint; Downgrade To Reduce: HDFC Securities

Robust franchise; albeit valuations sprinting ahead of fundamentals

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