Hold Sundaram Finance, target price Rs 2200: ICICI Direct

ICICI Direct has hold call on Sundaram Finance with a target price of Rs 2200. The current market price of Sundaram Finance is Rs 2089.9. Time period given by analyst is one year when Sundaram Finance Ltd. price can reach defined target.

Sundaram Finance Ltd., incorporated in the year 1954, is a Large Cap company (having a market cap of Rs 23231.26 Crore) operating in NBFC sector.

Sundaram Finance Ltd. key Products/Revenue Segments include Interest, Fees & Commission Income, Dividend, Income From Sale Of Share & Securities, Lease Rentals, Other Services and Bad Debts Recovery for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 1252.67 Crore, down -3.24 % from last quarter Total Income of Rs 1294.57 Crore and down -.76 % from last year same quarter Total Income of Rs 1262.32 Crore. Company reported net profit after tax of Rs 257.47 Crore in latest quarter.

Investment Rationale
Sundaram Finance’s share price has grown ~1.4x in the past five years. With improving outlook of vehicle finance segment, the brokerage believes Sundaram Finance is a play on the vehicle finance theme but would wait for a clear picture on competitive intensity and earnings trajectory

Promoter/FII Holdings
Promoters held 38.49 per cent stake in the company as of 31-Mar-2022, while FIIs owned 9.91 per cent, DIIs 14.27 per cent.