Sundaram Finance Limited (SUNDARMFIN.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+65.9%

₹6,700.34

vs ₹4,038.90 price

Levered DCF

-₹33,862.92

After debt service

Piotroski score

3 / 9

Weak

Altman Z-score

0.74

Distress zone

Rating

D+

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	23.42×	26.47×	31.75×	19.08×	18.22×	24.31×	16.75×	14.79×
P/B	3.24×	3.77×	4.12×	2.56×	2.43×	3.66×	1.99×	2.74×
P/S	4.91×	5.97×	6.53×	4.76×	4.25×	5.46×	2.9×	4.88×
EV / EBITDA	36.07×	37.46×	41.25×	32.48×	33.52×	41.2×	40.13×	25.88×
Gross margin	45.4%	50.5%	52.0%	55.5%	55.3%	48.8%	46.8%	49.8%
Operating margin	33.7%	71.6%	71.9%	69.5%	64.8%	66.3%	68.2%	74.0%
Net margin	21.0%	22.5%	20.6%	25.0%	23.3%	22.4%	17.3%	33.0%
Current ratio	0.18×	0.17×	4.27×	3.35×	1.6×	4.93×	1.64×	275.72×
Debt / equity	4.08×	3.97×	4×	3.62×	3.43×	3.95×	4.58×	3.51×
Interest coverage	0.82×	1.45×	1.5×	1.56×	1.45×	1.29×	1.28×	1.48×
Dividend yield	0.8%	0.7%	0.7%	1.2%	0.9%	0.6%	2.3%	1.5%
Payout ratio	19.8%	17.6%	22.2%	22.4%	17.2%	14.7%	37.7%	22.9%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	13.8%	14.2%	13.0%	13.4%	13.3%	15.1%	11.9%	18.5%
Return on invested capital	3.3%	6.7%	5.5%	192.3%	223.5%	253.5%	276.3%	4.3%
Return on assets	2.4%	2.5%	2.2%	2.4%	2.4%	2.5%	1.8%	3.4%
Free cash flow yield	7.0%	-18.2%	-18.8%	-25.8%	7.4%	1.5%	-0.3%	-24.7%
Earnings yield	4.3%	3.8%	3.1%	5.2%	5.5%	4.1%	6.0%	6.8%
Enterprise value	₹1.1T	₹1T	₹884.4B	₹600.8B	₹508.7B	₹586.1B	₹437.1B	₹381.9B
Net debt / EBITDA	19.88×	18.83×	19.99×	18.78×	19.43×	21.3×	27.96×	14.25×
Cash conversion cycle (days)	-8	-10	-11	163	108	-4	-5,796	-15