Sundaram Finance Ltd: Grandpa’s NBFC Still Smashing It in 2025?
1. At a Glance
Founded in 1954, Sundaram Finance is older than colour television in India—and somehow still cooler than most fintech startups. They do vehicle finance, home loans, insurance, mutual funds… basically everything except crypto.
2. Introduction with Hook
If Tata is the “uncle” of Indian business, Sundaram Finance is that wise grandpa who doesn’t speak much but silently owns half the block.
Market Cap: ₹56,438 Cr
ROE: 15.3%
EPS FY25: ₹169.17 Despite zero hype, they’ve compounded profits at 17% over 3 years and survived every economic pothole since Nehru.
3. Business Model (WTF Do They Even Do?)
Vehicle Finance – Heavy commercial vehicles are their bread and butter
Home Finance – Via Sundaram Home Finance
Insurance – General Insurance via JV with Royal Sundaram
Mutual Funds – Sundaram Asset Management
Distribution – Loans, bonds, insurance, mutual funds It’s like HDFC, but with 20% more conservatism and 80% fewer fintech buzzwords.
4. Financials Overview
Metric
FY22
FY23
FY24
FY25
Revenue (₹ Cr)
5,111
5,501
7,274
8,513
Net Profit (₹ Cr)
1,296
1,510
1,842
1,879
EPS (₹)
105.6
119.5
129.3
169.17
ROE (%)
14%
14%
14%
15.3%
Consistent profit grower.
No drama, no dilution, no nonsense.
Just good old cash churning.
5. Valuation
CMP: ₹5,075
EPS FY25: ₹169.17
BVPS: ₹1,188
P/E Range: 22x–30x → ₹3,720 – ₹5,075
P/BV Range: 3.5x–4.5x → ₹4,158 – ₹5,346
🎯 EduInvesting FV Range: ₹4,000 – ₹5,300 Not cheap. Not overpriced. It’s the Bajaj Chetak of NBFCs—timeless and slow compounding.
6. What’s Cooking – News, Triggers, Drama
ROE has crept up post-COVID
Strong Q4 FY25 profit: ₹553 Cr, up 18% YoY
FIIs now own 19% of the co vs 0% in Jun 2022
Conservative lending + zero asset quality stress = Big DII love
Their home finance arm is scaling fast in Tier 2/3 cities
7. Balance Sheet
FY22
FY23
FY24
FY25
Net Worth (₹ Cr)
8,795
9,920
11,078
Borrowings (₹ Cr)
36,356
42,694
52,334
Total Assets (₹ Cr)
48,154
56,076
64,276
Gearing increasing but well covered
₹75K Cr asset base = silent monster
Still leaner than peers in risk-adjusted terms
8. Cash Flow – Sab Number Game Hai
Year
CFO
CFI
CFF
Net Cash
FY23
₹-6,504 Cr
₹669 Cr
₹5,890 Cr
₹54 Cr
FY25
₹-8,985 Cr
₹931 Cr
₹7,821 Cr
₹-233 Cr
Operating cash flow is negative = classic NBFC trait
Financed mostly via borrowings
Still maintaining good solvency due to loan book quality
9. Ratios – Sexy or Stressy?
Metric
FY23
FY24
FY25
ROE %
14%
14%
15.3%
ROCE %
9.5%
9.6%
9.64%
NIM %
~5.5%
~5.7%
~5.8%
Dividend Yield
0.69%
0.69%
0.69%
ROE ticked upward
ROCE flat due to rising cost of funds
Dividend consistent and safe
10. P&L Breakdown – Show Me the Money
FY25
₹ Cr
Revenue
8,513
Interest Expense
4,226
Net Profit
1,879
Financing Margin %
31%
EPS
₹169.17
Healthy interest spread
Profits more consistent than your SIP returns
11. Peer Comparison
Company
P/E
ROE
AUM est
PAT (FY25)
Bajaj Finance
34.6
19.2%
₹3L Cr+
₹16,664 Cr
Cholamandalam
30.7
19.7%
₹1.3L Cr
₹4,263 Cr
Sundaram Finance
30.4
15.3%
₹75K Cr
₹1,879 Cr
Sundaram = Most conservative
Bajaj = Most aggressive
Chola = Balanced alpha
12. Miscellaneous – Shareholding, Promoters
Holder
%
Promoters
37.22%
FIIs
19.00% (from 0% in 2022)
DIIs
7.54%
Public
35.44%
FII interest has skyrocketed
Promoters stable
Mutual funds mildly underweight
13. EduInvesting Verdict™
Sundaram Finance is what happens when you combine Chennai discipline with old-school banking values. It’s boring, it’s slow, it’s steady—and that’s exactly the point. No crazy fintech pivots. No risky lending. Just 70 years of compounding.
It won’t 5x overnight. But it won’t go to zero either. In a world full of “Zomatos,” this is the Dal-Rice.
Metadata – Written by EduInvesting Analyst | 15 July 2025 – Tags: Sundaram Finance, NBFC, Vehicle Loans, ROE, FY25 Results, Indian Finance Stocks, EduInvesting
