Sundaram Finance Share Price Target 2026: Brokerage firm Nirmal Bang has maintained its ‘Hold’ call on the non-banking finance company (NBFC) Sundaram Finance’s stock following announcement of its January-March quarter results for fiscal 2025-26 (Q4FY26). The company reported a net profit of Rs 554 crore, compared to Rs 553 crore in the corresponding period last year.
Full-year profit, however, rose to Rs 2,059 crore in FY26 from Rs 1,813 crore in FY25.
Sundaram Finance Target Price 2026
Nirmal Bang on Sundaram Finance
With a target price of Rs 4,900, Nirmal Bang sees an upside potential of up to 12% on the NBFC stock. The brokerage expects that the risk-reward will remain fairly balanced.
“Sundaram Finance continues to exhibit a sustained growth trajectory across all parameters. Strong disbursement growth continues to showcase their operational and recovery abilities. Asset quality improved sequentially, but remained flat YoY. At CMP, we expect the risk-reward to remain fairly balanced. We value SUF’s standalone business using our RI-based fair value framework to derive a fair value of Rs3,810, while valuing subsidiaries at Rs1,090 with a 20% holdco discount, to arrive at an SOTP-based TP of Rs 4,900 (previous TP of Rs 5,090). We maintain our HOLD rating on the stock,” the brokerage said in a note.
Sundaram Finance’s Q4 results
The Chennai-based NBFC’s net interest income (NII) grew 21 per cent to Rs 3,376 crore in FY26 from Rs 2,793 crore in FY25. In the fourth quarter, NII rose 20 per cent to Rs 901 crore.
Assets under management (AUM) grew 16 per cent year-on-year to Rs 59,908 crore in FY26. Disbursements during the year increased 14 per cent to Rs 32,321 crore from Rs 28,405 crore in FY25. In the fourth quarter, disbursements grew 17 per cent.
Sundaram Finance Q3 results
In February, Sundaram Finance declared its Q3 quarterly results for the financial year 2025-26.
– Sundaram Finance logs disbursements of Rs. 24,270 crores for 9MFY26
– Q3 disbursement growth of 14% to Rs. 8,847 crores
– AUM grows 16.0% to Rs. 58,236 crores
– Profit after tax closed at Rs. 1,226 crores, up by 23% over 9MFY25
– Gross Stage 3 assets stood at 1.91% (1.70% as of December 31, 2024) and Net Stage 3 assets at
1.06% (0.97% as of December 31, 2024)
– ROA at 2.67% for 9MFY26 (2.49% for 9MFY25)
– Capital Adequacy Ratio at 19.1% (20.0% for 9MFY25)
– 160% interim dividend (Rs. 16/- per share) declared
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
