Sundaram Finance Holdings Limited is an India-based holding company. The Company is engaged in the business of investments, business processing and support services. The company was formerly known as Sundaram Finance Investments Limited and changed its name to Sundaram Finance Holdings Limited in March 2017. Sundaram Finance Holdings Limited was incorporated in 1993 and is based in Chennai, India.
The company operates primarily as an investment holding entity with investments in automotive sector. The Company generates a significant portion of its income from dividend flows from the portfolio companies that are engaged in the automotive sector. The business model is structured around maintaining strategic investments in companies operating within the automotive ecosystem, making it a key player in India's automotive finance sector.
The Company's segments include Investments, Manufacturing, Domestic Support Services and Overseas Support Services. It has a 100% subsidiary which is an outsourcing company offering various support services to large and mid-sized firms in and outside India. The Company's subsidiary is Sundaram Business Services Limited.
The company extends its services internationally, with business processing, and support services in India, Australia, and the United Kingdom. The company also offers outsourcing services to large and mid-sized firms. In addition, it engages in shared services business.
As of July 2025, Market Cap ₹ 11,071 Cr. according to Screener data. The company has demonstrated strong financial performance with Revenue: 155 Cr and Profit: 412 Cr in recent financial results. TTM profit after tax of Sundaram Finance Holdings Ltd was ₹574 Cr.
The company has shown remarkable growth trajectory with good profit growth of 39.5% CAGR over the last five years. Over the past 5 years, the revenue of SUNDARAM FINANCE HOLDINGS has grown at a CAGR of 41.1%. Over the past 5 years, SUNDARAM FINANCE HOLDINGS net profit has grown at a CAGR of 82.0%.
For FY24, the company reported exceptional performance with revenues of SUNDARAM FINANCE HOLDINGS stood at Rs 3,903 m in FY24, which was up 315.4% compared to Rs 940 m reported in FY23. The net profit growth was even more impressive with Net profit for the year grew by 920.4% YoY. Net profit margins during the year grew from 34.8% in FY23 to 82.8% in FY24.
The company maintains a strong financial position with Company is almost debt free. Key financial metrics include:
- Market Cap: ₹11,071 Cr (as of July 2025)
- Current Price: ₹498 (as per Screener data)
- Stock P/E: 26.9
- Book Value: ₹252
- Dividend Yield: 1.17%
- ROCE: 2.27%
- ROE: 7.93%
- Face Value: ₹5.00
Company has been maintaining a healthy dividend payout of 33.7%, reflecting its commitment to returning value to shareholders.
Promoter Holding: 55.0% indicates strong promoter confidence and control in the company's operations. This substantial promoter holding typically suggests long-term commitment and strategic vision alignment.
The company presents several positive investment attributes. Mkt Cap: 11,071 Crore (up 84.8% in 1 year) demonstrates strong market performance and investor confidence. The debt-free status provides financial flexibility and reduces risk exposure.
However, investors should note that Company has a low return on equity of 9.34% over last 3 years. This indicates that while the company is profitable, there may be room for improvement in capital efficiency.
Sundaram Finance Holdings Ltd has given a return of 59.95% in the last 3 years. The company's revenue model, primarily dependent on dividend flows from portfolio companies, makes it sensitive to the performance of the automotive sector and its investee companies.
30 June 2025 - SUNDARAM FINANCE HOLDINGS LIMITED has informed about Notice of Shareholders Meeting for Annual General Meeting to be held on 24-Jul-2025, indicating regular corporate governance activities and shareholder engagement.
The company's cash flow performance has been robust with SUNDARAM FINANCE HOLDINGS's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 24.9% on a YoY basis. Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 21 million net cash flows seen during FY23.
Sundaram Finance Holdings represents a unique investment opportunity in the Indian automotive finance ecosystem, offering exposure to the sector through a diversified portfolio approach while maintaining strong financial fundamentals and growth prospects.
