Update on the Indian Equity Market:
\nOn Monday Nifty closed 0.2% lower at 11,440. Among the sectoral indices Bank (-1.8%), PVT Bank (-1.5%), and FIN Services (-1.7%) closed lower. IT (+4.4%), Realty (+3.7%), and Media (+1.5%) closed higher. Bharti Airtel (-3.8%), Bajaj Finance (-3.2%), and BPCL (-3.2%) closed on a Negative note. HCL Tech (+10.6%), TCS (+4.9%), and Wipro (+4.5%) were among the top gainers.<\/p>\n
Excerpts from an interview of Mr. TT Srinivasaraghavan, MD, Sundaram Finance with ET NOW dated 14th September 2020:<\/p>\n
\u2022\tMr Srinivasaraghavan said the situation is better and the negativism has started to lift.
\n\u2022\tThe company continues to focus on prudence and in terms of protecting asset quality.
\n\u2022\tThe moratorium has ended 10 days ago and now the company is moving into real world.
\n\u2022\tHe says, the next 4 months ending December are going to be curtail from an asset quality portfolio preservation perspective.
\n\u2022\tThe growth is coming back is selected few segments, the disbursals in August 20 were 70% of August 19 and September20 is looking similar side or little more.
\n\u2022\tThe rural and infrastructure segments are showing signs of growth.
\n\u2022\tFor Commercial Vehicles the first 5 months was a no show and an estimate of the company says that some growth will be seen in Q4FY21E.
\n\u2022\tGiven current situation he said the current portfolio will be skewed away from Medium and Heavy commercial vehicles.
\n\u2022\tThe company is well capitalized and there is no need to raise capital.
\n\u2022\tOn the NPA front, he said that it\u2019s too early to spot a trend but people have started to repay and collections have started to flow in.
\n\u2022\tHe says, In Q3 the industry will see a spike in NPA\u2019s.
\nConsensus Estimate: (Source: market screener and Investing.com websites)
\n\u2022\tThe closing price of Sundaram Finance was \u20b9 1,335\/- as of 14-September-2020. It traded at 28x\/ 19x\/ 21x the consensus Earnings per share estimate of \u20b9 47.8\/70.5\/63.5 for FY21E\/ FY22E\/ FY23E respectively.<\/p>\n
\u2022\tThe consensus average target price for Sundaram Finance is \u20b9 1,423\/- which implies a PE multiple of 22x on FY23E EPS of \u20b963.5\/-.
\nDisclaimer: \u201cThe views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Update on the Indian Equity Market: On Monday Nifty closed 0.2% lower at 11,440. Among the sectoral indices Bank (-1.8%), PVT Bank (-1.5%), and FIN Services (-1.7%) closed lower. IT (+4.4%), Realty (+3.7%), and Media (+1.5%) closed higher. Bharti Airtel (-3.8%), Bajaj Finance (-3.2%), and BPCL (-3.2%) closed on a Negative note. HCL Tech (+10.6%), […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[101,123],"tags":[538,322,138],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1363"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1363"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1363\/revisions"}],"predecessor-version":[{"id":1364,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1363\/revisions\/1364"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}