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You are here : IndiaNotes >> Research & Analysis >> Companies >> Sundaram Finance Ltd. >> Research

Sundaram Finance Q3FY17: Why are Firstcall overweight for medium to long term investment?

Firstcall India Equity | 30 Jan, 2017  | Follow Author | Add to my Favourites 
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SYNOPSIS

  • Sundaram Finance Ltd incorporated in 1954 has grown today into one of the most trusted financial services groups in India.
  • Revenue for the quarter stood at Rs. 5981.27 million as compared to Rs. 5909.08 million, when compared with the prior year period.
  • During Q3 FY17, EBIDTA is Rs. 5092.90 million as against Rs. 4928.13 million in the corresponding period of the previous year.
  • During Q3 FY17, PBT stood at Rs. 2010.81 million vs Rs. 1472.37 million in Q3 FY16, up by 36.57%.
  • During Q3 FY17, the company’s net profit jumps to Rs. 1382.43 million as against Rs. 1021.82 million in Q3 FY16, up by 35.29%.
  • EPS of the company stood at Rs. 12.44 during the quarter, as against Rs. 9.20 per share over previous year period
  • During 9M FY17, Net Sales increased to Rs. 17476.44 million from Rs. 17301.19 million in 9M FY16.
  • During 9M FY17, PAT was at Rs. 3561.01 million as compared to Rs. 3551.68 million in 9M FY16.
  • PAT of the company is expected to grow at a CAGR of 6% over 2015 to 2018E.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 1294.30, the stock P/E ratio is at 29.00 x FY17E and 25.84 X FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 44.62 and Rs. 50.10 respectively.
  • PAT of the company is expected to grow at a CAGR of 6% over 2015 to 2018E.
  • On the basis of EV/EBITDA, the stock trades at 10.75 x for FY17E and 10.25 x for FY18E.
  • Price to Book Value of the stock is expected to be at 3.78 X and 3.29 x for FY17E and FY18E respectively.
  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

 


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About Firstcall India Equity

Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ, Themarkets.com, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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