Sundaram Finance Q3 Review - Earnings Inline; Lower Credit Cost Offsets Higher Cost Of Funds: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Report.Sundaram Finance Ltd.'s reported net interest income/operating profit of Rs 5 billion / Rs 4 billion, lower than estimates (Rs 5.3 billion/ Rs 4.4 billion) mainly due to contraction in net interest margin. NIMs declined by ~14 basis points QoQ on account of higher increase in cost of funds (up 40 bps QoQ) versus increase in yields (up 26 bps QoQ).However, aided by lower credit cost (21 bps versus 53 bps in Q2), profit after tax came in largely in-line at Rs 3 billion registering a growth of 24% YoY (-18% QoQ). Assets under management growth continues to remain healthy at 26% YoY (5% QoQ), while disbursement growth moderated to 15% YoY (-6% QoQ). Disbursement growth was led by retail commercial vehicle and construction equipment. Asset quality improved with gross / net stage III at 1.8%/1.0%.The stock trades at 3.3 times FY26E core book value, with return of asserts/return of equity at ~2.9%/~22%, respectively. While we remain positive on the overall growth outlook for the company, we maintain our 'Hold' rating as the upside is limited, with a revised target price of Rs 4,050 (Rs 3,525 earlier)..Click on the attachment to read the full report:.LIC Housing Finance Q3 Results Review - Good Quarter On Margins, Asset Quality: Yes Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Sundaram Finance Q3 Review - Earnings Inline; Lower Credit Cost Offsets Higher Cost Of Funds: Systematix

With improvement in economic activity and the viability of our customers, GS3 assets improved substantially over Q3 FY23.

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