{"id":362,"date":"2019-10-15T11:58:44","date_gmt":"2019-10-15T11:58:44","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=362"},"modified":"2019-10-15T11:59:06","modified_gmt":"2019-10-15T11:59:06","slug":"sundaram-finance-grabbing-little-pockets-of-opportunities-available","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/10\/15\/sundaram-finance-grabbing-little-pockets-of-opportunities-available\/","title":{"rendered":"Sundaram Finance \u2013 Grabbing little pockets of opportunities available"},"content":{"rendered":"\n<p><strong>Update&nbsp;on\nthe Indian Equity market:<\/strong><\/p>\n\n\n\n<p>On Monday, NIFTY closed +0.22% higher. Among sectoral indices NIFTY Realty (+1.64%), NIFTY Auto (+1.47%), NIFTY Pharma (+1.19%) closed higher while NIFTY PSU Bank (-0.53%), NIFTY IT (-0.32%) ended on a negative note. The biggest gainers were ONGC (+5.50%), TATA Motors (+5.03%), Bharti Airtel (+2.62%) whereas Infosys (-3.50), Bajaj Finance (-2.65%), Bajaj FinServ (-1.22%) closed with high losses.<\/p>\n\n\n\n<p><span style=\"text-decoration: underline;\"><em>Excerpts from an interview with T.T Srinivasaraghavan, managing director, Sundaram Finance with CNBC- tv18<\/em><\/span><\/p>\n\n\n\n<ul><li>Talking\nabout prevailing scenario in NBFC space Mr Srinivasaraghavan says NBFCs is\nprobably the lousiest coinage that you could have for any industry, this is\nbecause it is as heterogeneous as anything could be.<\/li><li>However,\nhe says, that clubbing everything together and saying NBFC is stressed sector\nwill probably will be overstatement <\/li><li>Speaking\nabout on ground situation he says, it is not looking much different and there\nare no signs on reviewal in short term.<\/li><li>There\nis overcapacity and nothing has happened much on the manufacturing side to soak\nup this additional capacity. Plus, the uncertainty about BS VI continues.<\/li><li>Right\nnow, growth is not a priority from company\u2019s point of view, because in a market\nwhich is tanking, it is not appropriate to swim against the tide and growing\ntopline in an aggressive way is certainly not a part of the Sundaram Finance\nDNA.&nbsp;&nbsp; <\/li><li>&nbsp;The focus is making asset quality robust and\ngrabbing coming opportunities.<\/li><li>Speaking\nabout further quarters he says, higher delinquencies cannot rule that out, because\nin many states, there have been local issues where governments have either held\nback on payments to contractors or governments have rescinded contracts.<\/li><li>So,\nthese local issues will certainly affect the cash flows.<\/li><li>Speaking\nabout government purchases or the State Transport Undertaking (STU) purchases,\nhe says, it is not really going to feed into business for banks and NBFCs but\nit will be a benefit for original equipment manufacturers\u2019 (OEMs).<\/li><li>Mr\nSrinivasaraghavan says, now that interest rates have come down, corporate tax\nIs reduced. Corporates should come up and take some responsibility and do something\nthat will help in near future instead of cribbing.<\/li><li>Mr\nsrinivasaraghavan says the overcapacity is cyclical but this the longest one.\nHe says, we should not worry about it in long term.<\/li><li>Scrappage\nis a welcome thing but it wont act as a magical wand. It has to accompanied by\nseveral other things.<\/li><li>He\nsays, monsoon have been a great positive news in a gloomy horizon. At least we\ncan hear about people enquiring, people may be looking at perhaps some buying,\nso post Diwali perhaps there could be some buying taking place.<\/li><li>He\nadds, that this time we will have a \u2018pa\u2019 shaped recovery, which is a Tamil\nalphabet. It is a flat line at the bottom, it is neither a U nor a V. It is two\nvertical lines on the side and a horizontal line connects both of them.<\/li><\/ul>\n\n\n\n<p>Consensus Estimate\n(Source: market screener website)<\/p>\n\n\n\n<ul><li>The closing price\nof Sundaram Finance was \u20b9 1,610\/- as of 14-October-19.\nIt traded at 24.5x\/ 21.5x\/ 21.0x the consensus EPS for FY 20E\/ FY 21E\/ FY 22E of \u20b9 65.6\/ 74.7\/ 76.5 respectively.<\/li><li>It trades as P\/B 3.1x\/2.8x\/2.6x\nthe consensus Book value per share for FY20E\/FY 21E\/FY22 of 507\/568\/607.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Update&nbsp;on the Indian Equity market: On Monday, NIFTY closed +0.22% higher. Among sectoral indices NIFTY Realty (+1.64%), NIFTY Auto (+1.47%), NIFTY Pharma (+1.19%) closed higher while NIFTY PSU Bank (-0.53%), NIFTY IT (-0.32%) ended on a negative note. The biggest gainers were ONGC (+5.50%), TATA Motors (+5.03%), Bharti Airtel (+2.62%) whereas Infosys (-3.50), Bajaj Finance [&hellip;]<\/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":[126,124,125],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/362"}],"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=362"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/362\/revisions"}],"predecessor-version":[{"id":363,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/362\/revisions\/363"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}