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Sundaram FinanceNSE:SUNDARMFIN -0.32%63 Return-on-Tangible-Equity is 15.55% as of Mar. 2026, which is 1% above its 10-year median of 15.38. GuruFocus rates NSE:SUNDARMFIN with a GF Score™ of 63/100 and a GF Value™ of ₹5,781.79 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 526 Credit Services companies, Sundaram Finance ranks better than 76.62% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sundaram Finance's annualized net income for the quarter that ended in Mar. 2026 was ₹22,167 Mil. Sundaram Finance's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹142,587 Mil. Therefore, Sundaram Finance's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 15.55%.
The historical rank and industry rank for Sundaram Finance's Return-on-Tangible-Equity or its related term are showing as below:
NSE:SUNDARMFIN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.87 Med: 15.38 Max: 20.64
Current: 14.96
During the past 13 years, Sundaram Finance's highest Return-on-Tangible-Equity was 20.64%. The lowest was 12.87%. And the median was 15.38%.
NSE:SUNDARMFIN's Return-on-Tangible-Equity is ranked better than 76.62% of 526
companies
in the Credit Services industry
Industry Median: 6.975
vs NSE:SUNDARMFIN: 14.96
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sundaram Finance Return-on-Tangible-Equity Related Terms
Sundaram Finance Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sundaram Finance's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:SUNDARMFIN vs V, MA, AXP: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Sundaram Finance's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sundaram Finance Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Sundaram Finance's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sundaram Finance's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.55% mean?
Sundaram Finance (NSE:SUNDARMFIN) has a Return-on-Tangible-Equity of 15.55% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sundaram Finance and its competitors. This is near median its historical median of 15.38. Over the past decade, Sundaram Finance's Return-on-Tangible-Equity has ranged from 12.87 to 20.64. According to the industry distribution chart, Sundaram Finance ranks #123 out of 526 companies in the Credit Services industry, placing it in the top 23.4%.
Is Sundaram Finance's Return-on-Tangible-Equity too high?
Sundaram Finance's current Return-on-Tangible-Equity of 15.55% is near median its 10-year median of 15.38. Over the past 10 years, this metric has ranged from a low of 12.87 to a high of 20.64. The Credit Services industry median Return-on-Tangible-Equity is 6.98. Sundaram Finance's value of 15.55% is 122.9% above this industry median. Based on the distribution chart, Sundaram Finance ranks #123 out of 526 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Sundaram Finance has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sundaram Finance's Return-on-Tangible-Equity compare to V and MA?
According to the Credit Services industry distribution chart, Sundaram Finance ranks #123 out of 526 companies for Return-on-Tangible-Equity. This places Sundaram Finance in the top 23% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.98. Sundaram Finance's value of 15.55% is 122.9% above this benchmark. Historically, Sundaram Finance's own Return-on-Tangible-Equity has ranged from 12.87 to 20.64 over the past decade. While the company's 10-year median is 15.38 vs. the industry median of 6.98, Sundaram Finance has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 6.98, based on 526 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sundaram Finance's current Return-on-Tangible-Equity of 15.55% is 122.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sundaram Finance and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 6.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sundaram Finance's current Return-on-Tangible-Equity is 15.55%, which is near median its own 10-year median of 15.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sundaram Finance stock overvalued right now?
Based on GuruFocus' analysis, Sundaram Finance (NSE:SUNDARMFIN) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹5,781.79, compared to a current price of ₹4,430.80 — trading 23.4% below its estimated fair value. The current Return-on-Tangible-Equity is 15.55%, which is near median its 10-year median of 15.38 and 122.9% above the Credit Services industry median of 6.98. Sundaram Finance's overall GF Score™ is 63/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sundaram Finance (NSE:SUNDARMFIN), the current Return-on-Tangible-Equity is 15.55% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sundaram Finance (NSE:SUNDARMFIN) Overvalued in 2026?
Based on GuruFocus' analysis, Sundaram Finance stock appears to be undervalued.
The current stock price of ₹4,430.80 is trading 23.4% below its estimated GF Value™ of ₹5,781.79.
GuruFocus considers Sundaram Finance to be Modestly Undervalued.
Key valuation signals for NSE:SUNDARMFIN:
Return-on-Tangible-Equity: 15.55% (near median its 10-year median of 15.38)
GF Value™: ₹5,781.79 vs. price of ₹4,430.80 (23.4% below fair value)
Industry Position: 122.9% above the Credit Services median (#123 of 526)
No single metric tells the full story. See the NSE:SUNDARMFIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sundaram Finance Ltd is a nonbanking finance company operating in India. The company provides various financial products and services, including commercial vehicle finance, car finance, farm equipment finance, construction equipment finance, and fleet cards. Through its subsidiaries, the company has a diversified presence in insurance, mutual funds, housing finance, business process outsourcing, information technology services, and retail distribution of various financial services and products. The company's business segments include Asset Financing, which derives key revenue, and Other operations.
63GF Score
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