Sundaram Finance Ltd - Technical & Fundamental Analysis

Fundamental Analysis
1. Financial Performance (Q3 FY2024-25)

• Total Income: ₹2,207.35 crore (+20.75% YoY)
  
• Net Profit After Tax: ₹451.18 crore
  
• EPS: ₹143.50
  
• Return on Equity (ROE): 12.52%
  
• P/E Ratio: 31.80 (Moderate valuation compared to sector peers)
  
• Dividend Yield: 0.66%
  
• Market Cap: ₹50,703 crore
  

2. Recent Market Performance & Sentiment

• The stock saw a 3.60% decline in the last session.
  
• Analysts have set a 12-month target of ₹4,517.10, with a high estimate of ₹5,570 and a low of ₹3,820.
  
• Sector Performance: Sundaram Finance has been an outperformer among NBFCs, showing strong loan book growth and stable asset quality.
  

Technical Analysis

1. Price Action & Key Levels

• Current Price: ₹4677
  
• Trend: The stock is consolidating within key Fair Value Gaps (FVG) and Order Blocks (OB), indicating a decision point.
  

Key Resistance Levels (Bearish OB & FVG)

• Bearish OB - Hourly: ₹4691.95 (Immediate resistance)
  
• Bearish FVG: ₹4725-4760 (Strong resistance zone)
  
• Bearish OB - Daily: ₹4785 & ₹4815 (Major supply zones)
  
• Ultimate Resistance: ₹4929-4965 (Bearish OB + FVG)
  

Key Support Levels (Bullish OB & FVG)

• Bullish FVG: ₹4418-4673 (Currently holding above this zone)
  
• Bullish FVG: ₹4421-4480 (Strong demand zone)
  
• Critical Support: ₹4399 & ₹4213
  

Bullish Scenario (Breakout Above ₹4725)

• If price sustains above ₹4725, it can move toward ₹4760 → ₹4785 → ₹4815.
  
• A confirmed breakout above ₹4965 would indicate a strong bullish trend.
  

Bearish Scenario (Rejection at ₹4691-4725)

• If price rejects ₹4691-4725, expect a pullback to ₹4673 → ₹4480 → ₹4399.
  
• If price falls below ₹4213, a bearish trend may continue.
  

Final Call: Bullish above ₹4725 | Bearish below ₹4673.

Disclaimer
This analysis is for informational purposes only and not financial advice. Stock prices are volatile, and investing involves risks, including loss of capital. Do your own research and consult a financial advisor before making decisions. We are not liable for any losses. Trade responsibly.