Sundaram Finance: Deposit base crosses Rs16000 mn, buy

Firstcall India Equity | Dec. 7, 2015, midnight

Highlights:


- Sundaram Finance Ltd incorporated in 1954 has grown today into one of the most trusted financial services groups in India.


- During Q1 FY15, the company’s net profit jumps to Rs. 1222.40 million against Rs. 1159.93 million in the corresponding quarter ending of previous year, an increase of 5.39%.


- Revenue for the quarter just rose by 0.64% to Rs. 5405.45 million from Rs. 5370.90 million, when compared with the prior year period.


- EPS of the company stood at Rs. 11.00 a share during the quarter, registering 5.39% increased over previous year period.


- Profit before interest, depreciation and tax is Rs. 4767.49 million as against Rs. 4640.92 million in the corresponding period of the previous year.


- The deposit base of the Company has crossed Rs. 16000 million and stood at Rs. 16660 million as on 31 March, 2014.


- The Average Assets under Management of the Company were Rs. 152480 mn for the year 2013- 14.


- Net Sales and PAT of the company are expected to grow at a CAGR of 8% & 10% over 2013 to 2016E respectively.


Outlook and Conclusion:
At the current market price of Rs.1146.00, the stock P/E ratio is at 26.01 x FY15E and 23.26 x FY16E respectively. Investors are recommended to buy the stock for a target price of Rs.1260.00 for Medium to Long term investment.

 

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