SUNDARAM FINANCE LTD Valuation

SUNDARMFIN · Financial Services · Current price ₹4,576.3

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DocStoX fair value
₹3,004
low confidence
Current price
₹4,576
Upside
-34.4%
P/E ratio
24.7x
P/B ratio
3.4x
Verdict
Expensive
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Is SUNDARAM FINANCE LTD undervalued?

DocStoX estimates the fair value of SUNDARAM FINANCE LTD at ₹3,004 per share, versus the current market price of ₹4,576. That puts the stock about -34.4% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Excess-return (book value) (₹1,486), Relative P/E (₹5,397), Analyst target (₹5,132). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹1,486 (bear) to ₹3,004 (base) to ₹5,397 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

SUNDARAM FINANCE LTD trades at a P/E of 24.7x and a P/B of 3.4x, with a dividend yield of 0.9%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on SUNDARAM FINANCE LTD

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.