Sundaram Finance Q1FY17: Firstcall are overweight for medium to long term investment

Firstcall India Equity | April 29, 2016, midnight


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. 5576.66 million as compared to Rs. 5551.54 million, when compared with the prior year period.
  • During Q1 FY17, EBIDTA is Rs. 4424.37 million as against Rs. 4539.53 million in the corresponding period of the previous year.
  • The company’s net profit was at Rs. 901.76 million as against Rs. 989.99 million in the corresponding quarter ending of previous year.
  • During Q1 FY17, PBT stood at Rs. 1325.34 million vs Rs. 1446.93 million in Q1 FY16.
  • EPS of the company stood at Rs. 8.12 during the quarter, as against Rs. 8.91 per share over previous year period.
  • Total Assets Under Management (AUM) AUM stood at Rs. 186030 mn as on June 30, 2016 as compared to Rs. 164480 mn as on June 30, 2015.
  • Gross NPA and Net NPA stood at 2.15% and 1.00% respectively as on June 30, 2016.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 5% and 6% over 2015 to 2018E, respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 1395.00, the stock P/E ratio is at 31.12 X FY17E and 27.63 X FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 44.83 and Rs. 50.48 respectively.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 5% and 6% over 2015 to 2018E, respectively.
  • On the basis of EV/EBITDA, the stock trades at 10.04 X for FY17E and 9.07 X for FY18E.
  • Price to Book Value of the stock is expected to be at 4.07 X and 3.55 X for FY17E and FY18E respectively.
  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

 

blog comments powered by Disqus