Sundaram Finance is a registered deposit-taking NBFC established in 1954. Founded by T S Santhanam, Sundaram Finance is headquartered in Chennai, India. The company has 5,059 total employees and operates as one of India's leading non-banking financial companies with a diversified portfolio of financial services.
The company is engaged in retail finance across multiple domains like Vehicle finance, Home Finance, Mutual Funds, General insurance, and Financial service distribution. The company provides various financial products and services, including commercial vehicle finance, car finance, farm equipment finance, construction equipment finance, and fleet cards. Through its subsidiaries, the company has a diversified presence in insurance, mutual funds, housing finance, business process outsourcing, information technology services, and retail distribution of various financial services and products.
The company started with the business of financing the purchase of commercial vehicles and gradually expanded to multiple financial services. In 1981, it started equipment leasing operations. Post-1989, it started extending financial services through subsidiaries like India Equipment Leasing Ltd., and Sundaram Home Finance Ltd. In 1996, it entered into a joint venture agreement with Newton Management Limited, U.K., and Stewart Newton Holdings (Mauritius) Limited for setting up an Asset Management Company.
The company has built a strong reputation in the Indian financial services sector, becoming the first NBFC to get listed on the Madras Stock Exchange. The company has received an "AAA" (Highest Degree of Safety) rating from ICRA and CRISIL. Its short-term borrowings have received an A1+ rating by both ICRA and CRISIL.
The company's business segments include Asset Financing, which derives key revenue, and Other operations. Its segments include Asset Financing and Others. The company operates through a comprehensive network of subsidiaries and joint ventures that enhance its market presence across various financial services verticals.
The Company's subsidiaries include Sundaram Finance Holdings Limited, Sundaram Home Finance Limited, Sundaram Asset Management Company, Sundaram Trustee Company Limited, LGF Services Limited, Sundaram Fund Services Limited, Sundaram Finance Employee Welfare Trust, Sundaram Business Services Limited, Sundaram Asset Management Singapore Pte Limited, Sundaram Alternate Assets Limited, SAMC Support Services Private Limited, and SAMC Services Private Limited.
The market capitalization of Sundaram Finance Ltd (SUNDARMFIN) is ₹55,017.80 Crore as of June 18, 2025. The company has a market cap of ₹57,418 Crore (up 12.4% in 1 year) and shows strong financial fundamentals with consistent growth across key metrics.
Key Financial Highlights for FY2025:
* Net profit rose 30.88% to ₹1,879.44 Crore in the year ended March 2025, as against ₹1,436.02 Crore during the previous year ended March 2024.
* Sales rose 16.77% to ₹8,485.63 Crore in the year ended March 2025, as against ₹7,267.12 Crore during the previous year ended March 2024.
* Revenue: ₹8,513 Crore, Profit: ₹1,879 Crore.
* On a consolidated basis, Sundaram Finance Ltd reported a profit of ₹552.98 Crore on a total income of ₹2,300.22 Crore for the quarter ended 2025.
Recent Quarterly Performance (Q3 FY2024-2025):
* Sundaram Finance Ltd's revenue jumped 20.75% since last year same period to ₹2,207.35 Crore.
* Sundaram Finance Ltd's net profit jumped 6.56% since last year same period to ₹455.47 Crore.
The company maintains a robust dividend policy, demonstrating its commitment to shareholder returns. Sundaram Finance Ltd has recommended a final dividend of ₹21 per share (210%) for the financial year ended March 31, 2025, on the paid-up capital of ₹111.10 Crore. This, together with the interim dividend of ₹14 per share (140%) paid on February 24, 2025, will make a total dividend of ₹35 per share (350%) for the financial year ended March 31, 2025.
Promoter holding in Sundaram Finance Ltd has gone down to 37.22% as of March 2025 from 37.86% as of June 2024. The company maintains strong corporate governance standards with a well-balanced shareholding structure that includes institutional and retail investors.
The company's housing finance subsidiary has shown strong growth momentum. Sundaram Home Finance reported a 26% rise in its net profit for the January-March 2025 quarter to ₹71.57 Crore from ₹56.80 Crore registered in the corresponding quarter of last financial year. Disbursements made during the quarter under review stood at ₹1,929 Crore. Sundaram Home Finance has unveiled plans to raise over ₹6,000 Crore to accelerate its growth during the current financial year. The funds proposed to be raised would be through a mix of refinance from NHB, bank debt, debentures, and fixed deposits.
Cholamandalam Investment and Finance Company, L&T Financial Services, Mahindra & Mahindra Financial Services, Religare Enterprises, and Bajaj Finserv are some of the 29 competitors of Sundaram Finance. The company has established itself as a significant player in the Indian NBFC sector with a strong focus on vehicle financing and diversified financial services.
The 52-week high of Sundaram Finance Ltd (SUNDARMFIN) is ₹5,535.85, and the 52-week low is ₹3,732.90. The P/E (price-to-earnings) ratio of Sundaram Finance Ltd (SUNDARMFIN) is 29.27. The P/B (price-to-book) ratio is 4.97. These metrics reflect the market's confidence in the company's growth prospects and financial stability.
The company continues to strengthen its market position through strategic expansion, particularly in tier-III towns and emerging business segments, while maintaining its focus on core vehicle financing operations and diversified financial services offerings.
