Sundaram Finance Ltd. share price target

We maintain our HOLD recommendation on the stock

Recommendation: We maintain our HOLD recommendation on the stock

We change our recommendation from BUY to HOLD on the stock as the recent run-up in stock pirce leaves limited upside potential.

Recommendation: We maintain our BUY recommendation on the stock.

We maintain our BUY' rating on the stock with a revised target price of Rs 3015/share (3.1x Sep'24 ABV), implying an upside of 18% from the CMP.

Sundaram Finance (Sundaram) reported strong FY23 earnings in key parameters such as standalone AUM growth (up 17% YoY), home finance AUM growth (up 18% YoY), standalone NIMs (5.3%) sustenance in rising interest rate regime and better asset quality (gross stage 3 as on Mar’23 stood at 1.66% vs 2.2% in Mar’22).

Sundaram Finance (Sundaram) has reported strong Q3FY23 earnings in key parameters such as AUM growth (up 5% QoQ), NIMs (5.4%) sustenance in rising interest rate regime and opex moderation (down 1% QoQ despite AUM growth). This performance is contrasting to the moderate management commentary.

We maintain our BUY rating with a revised target price of Rs 2,605/share (based on SOTP valuation), implying an upside of 11.5% from the CMP.

Sundaram Finance’s (Sundaram) management has opined about the incrementally weak business trends in certain key markets in South India along with the outlook of possible ~100bps lower NIMs in medium term, emanating from increasing cost of funds and high competition (from banks) in the MHCV segment.

Sundaram Finance (Sundaram) has reported good Q2FY23 result as quantified by standalone PPOP growth QoQ (as opposed to decline or flat PPOP growth for peers).

We maintain our buy rating with a revised target price of Rs 2,490/share (based on SOTP valuation), implying an upside of 11% from the CMP.

Sundaram Finance’s (Sundaram) Q1FY23 result was highlighted by growth returning in standalone business (31%/138% QoQ/YoY growth in disbursement).

We upgrade our rating from HOLD to BUY with a target price of Rs 2,195/share (based on SOTP valuation), implying an upside of 20% from the CMP.

We maintain a BUY rating with an unchanged TP of Rs.2,830. Sundaram witnessed sharp improvement in its disbursements, further reiterating our stance on the revival in the CV cycle. We expect the growth momentum to accelerate further given the positive high frequency indicators (Oct 21 GST collections at second highest), pick-up in CV sales etc that hint to strong tailwinds. While restructuring came in higher at 7.17% (prudent approach being implemented), Stage 3 remains comfortable (declined QoQ) and best-inclass reflecting strong underwriting. AUM growth acceleration, improving credit costs, and margin expansion augur well for core RoEs at 17-18%. We...