February 02, 2017 / 17:22 IST
Industry participants have guided for steady growth in auto-industry volumes and this bodes well for SUF. As for its subsidiaries, the management continues to adopt a cautious approach towards the housing finance business. Asset management arm (AMC) and General insurance businesses remain profitable.
OutlookWe retain Buy on Sundaram Finance (SUF) with SOTP based TP at Rs 1,740. Our positive stance on SUF is based on the premise of a) market share gains in the asset financing business (AFC) b) consistency in earnings evident in healthy return ratios c) best in class asset quality and d) healthy capital position. The NBFC’s Q3’17 results were a reflection of the above.
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