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Hold Sundaram Finance; target of Rs 2200: ICICI Direct

ICICI Direct recommended hold rating on Sundaram Finance with a target price of Rs 2200 in its research report dated August 17, 2022.

August 19, 2022 / 16:41 IST
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ICICI Direct's research report on Sundaram Finance

Sundaram Finance (SFL) is a Chennai-based financial group with a presence in auto finance, home finance, asset management and general insurance. Major value is derived from its vehicle financing business with AUM of Rs 30,552 crore as of June 2022 • SFL has 632 branches with a substantial presence (~51%) in southern India.

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Outlook

We maintain our HOLD rating on the stock. We value the core business (vehicle finance) at ~2.3x FY24E ABV and revise our SOTP based target price at Rs 2200 per share from Rs 2450.