Firstcall Research report on Sundaram Finance
"Sundaram Finance incorporated in 1954 has grown today into one of the most trusted financial services groups in India, reported its financial results for the quarter ended 30th Sep, 2014. The company’s net profit jumps to Rs. 1302.70 million against Rs. 1227.16 million in the corresponding quarter ending of previous year, an increase of 6.16%. Revenue for the quarter just rose by 0.65% to Rs. 5619.67 million from Rs. 5583.11 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 11.73 a share during the quarter, registering 6.16% increased over previous year period. Profit before interest, depreciation and tax is Rs. 5035.34 million as against Rs. 4987.54 million in the corresponding period of the previous year."
Outlook and Conclusion
At the current market price of Rs.1275.00, the stock P/E ratio is at 28.13 x FY15E and 25.26 x FY16E respectively.
Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.45.32 and Rs.50.48 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 7% and 11% over 2013 to 2016E respectively.
On the basis of EV/EBITDA, the stock trades at 10.80 x for FY15E and 10.15 x for FY16E.
Price to Book Value of the stock is expected to be at 4.87 x and 4.08 x respectively for FY15E and FY16E.
"We recommend ‘BUY’ in this particular scrip with a target price of Rs 1400 for Medium to Long term investment", says Firstcall Research Report.
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