{"id":243154,"date":"2026-09-11T10:33:50","date_gmt":"2026-09-11T05:03:50","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=243154"},"modified":"2026-09-11T10:33:50","modified_gmt":"2026-09-11T05:03:50","slug":"vehicle-finance-stock-rises-92-percent-in-5-years","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/","title":{"rendered":"This Vehicle Finance Stock Rises 92% in 5 Years: Steady Compounding Beats the Hype"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>CMP approximately Rs 4,670 (11 Sep 2026). 5-year return 92.15%. 52W range Rs 4,000 to Rs 5,642. Market cap Rs 52,245 Cr. Q1 FY27 consolidated PAT Rs 636 Cr, up 34%.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">Sundaram Finance, a Chennai-based vehicle and equipment lender, has returned approximately 92% in five years. The rise came from steady loan growth, a near doubling of total income to Rs 9,873 crore in FY26 and consistently low bad loans. Recent momentum is weaker, with a 1-year return of 9.46%, and the stock trades about 17% below its March 2026 high.<\/p>\n<\/div>\n<p>This vehicle finance stock has nearly doubled investor money in five years, with a return of approximately 92.15% as of 10 September 2026. The gain came from steady loan growth, rising profits and clean asset quality.<\/p>\n<p>The company is <strong><a href='https:\/\/univest.in\/stocks\/sundarmfin\/sundaram-finance-ltd-share-price-today'>Sundaram Finance Ltd<\/a> (NSE: SUNDARMFIN)<\/strong>, a Chennai-based NBFC that finances commercial vehicles, cars, tractors and construction equipment. This vehicle finance stock ranks 58th out of 101 large-cap and mid-cap NSE stocks on 5-year returns. It traded near Rs 4,670 on the morning of 11 September 2026, about 0.7% below the previous close of Rs 4,703, giving it a market value of approximately Rs 52,245 crore.<\/p>\n<p style=\"margin-top:24px;\"><strong>Click Here &#8211; Get Free Investment Predictions<\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#How_Much_Has_This_Vehicle_Finance_Stock_Returned_in_5_Years\" title=\"How Much Has This Vehicle Finance Stock Returned in 5 Years?\">How Much Has This Vehicle Finance Stock Returned in 5 Years?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Why_Did_This_Vehicle_Finance_Stock_Rise_Over_5_Years\" title=\"Why Did This Vehicle Finance Stock Rise Over 5 Years?\">Why Did This Vehicle Finance Stock Rise Over 5 Years?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Phase_1_Post-Pandemic_Recovery_in_Vehicle_Loans_FY22_to_FY23\" title=\"Phase 1: Post-Pandemic Recovery in Vehicle Loans (FY22 to FY23)\">Phase 1: Post-Pandemic Recovery in Vehicle Loans (FY22 to FY23)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Phase_2_Faster_Growth_and_a_Re-Rating_FY24_to_FY25\" title=\"Phase 2: Faster Growth and a Re-Rating (FY24 to FY25)\">Phase 2: Faster Growth and a Re-Rating (FY24 to FY25)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Phase_3_Record_Profits_and_GST_Relief_FY26_to_Q1_FY27\" title=\"Phase 3: Record Profits and GST Relief (FY26 to Q1 FY27)\">Phase 3: Record Profits and GST Relief (FY26 to Q1 FY27)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Steady_Support_From_the_Group_Businesses\" title=\"Steady Support From the Group Businesses\">Steady Support From the Group Businesses<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Sundaram_Finance_Q1_FY27_Results_AUM_NIM_and_Asset_Quality\" title=\"Sundaram Finance Q1 FY27 Results: AUM, NIM and Asset Quality\">Sundaram Finance Q1 FY27 Results: AUM, NIM and Asset Quality<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Five-Year_Financial_Trend_of_the_Vehicle_Finance_Stock\" title=\"Five-Year Financial Trend of the Vehicle Finance Stock\">Five-Year Financial Trend of the Vehicle Finance Stock<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Who_Owns_the_Vehicle_Finance_Stock_Shareholding_Trend\" title=\"Who Owns the Vehicle Finance Stock? Shareholding Trend\">Who Owns the Vehicle Finance Stock? Shareholding Trend<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Is_the_Sundaram_Finance_Share_Price_Fairly_Valued\" title=\"Is the Sundaram Finance Share Price Fairly Valued?\">Is the Sundaram Finance Share Price Fairly Valued?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Risks_for_the_Vehicle_Finance_Stock\" title=\"Risks for the Vehicle Finance Stock\">Risks for the Vehicle Finance Stock<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Sundaram_Finance_Share_Analyst_View\" title=\"Sundaram Finance Share: Analyst View\">Sundaram Finance Share: Analyst View<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Sundaram_Finance_Share_Price_Target\" title=\"Sundaram Finance Share Price Target\">Sundaram Finance Share Price Target<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Which_vehicle_finance_stock_rose_92_in_5_years\" title=\"Which vehicle finance stock rose 92% in 5 years?\">Which vehicle finance stock rose 92% in 5 years?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Why_did_the_Sundaram_Finance_share_price_rise_over_5_years\" title=\"Why did the Sundaram Finance share price rise over 5 years?\">Why did the Sundaram Finance share price rise over 5 years?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#What_were_Sundaram_Finance_Q1_FY27_results\" title=\"What were Sundaram Finance Q1 FY27 results?\">What were Sundaram Finance Q1 FY27 results?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#What_is_the_NIM_and_NPA_of_Sundaram_Finance\" title=\"What is the NIM and NPA of Sundaram Finance?\">What is the NIM and NPA of Sundaram Finance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#What_is_the_52-week_high_and_low_of_Sundaram_Finance\" title=\"What is the 52-week high and low of Sundaram Finance?\">What is the 52-week high and low of Sundaram Finance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#What_is_the_Sundaram_Finance_share_price_target\" title=\"What is the Sundaram Finance share price target?\">What is the Sundaram Finance share price target?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Is_Sundaram_Finance_overvalued\" title=\"Is Sundaram Finance overvalued?\">Is Sundaram Finance overvalued?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/univest.in\/blogs-2\/vehicle-finance-stock-rises-92-percent-in-5-years\/#Is_this_vehicle_finance_stock_a_good_long-term_investment\" title=\"Is this vehicle finance stock a good long-term investment?\">Is this vehicle finance stock a good long-term investment?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_Much_Has_This_Vehicle_Finance_Stock_Returned_in_5_Years\"><\/span><strong>How Much Has This Vehicle Finance Stock Returned in 5 Years?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This vehicle finance stock has returned approximately 92.15% in five years, which works out to a compounded gain of around 14% a year. Rs 1 lakh invested in September 2021 would be worth roughly Rs 1.92 lakh today, before dividends. The company made no bonus issue or stock split in this window, so the return is a clean price gain.<\/p>\n<p>Here is how the vehicle finance stock has performed across time frames on the 10 September 2026 screen:<\/p>\n<table>\n<thead>\n<tr>\n<th>Period<\/th>\n<th>Return (%)<\/th>\n<th>Rank (out of 101)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1 Month<\/td>\n<td>5.13%<\/td>\n<td>42<\/td>\n<\/tr>\n<tr>\n<td>6 Months<\/td>\n<td>4.97%<\/td>\n<td>90<\/td>\n<\/tr>\n<tr>\n<td>1 Year<\/td>\n<td>9.46%<\/td>\n<td>74<\/td>\n<\/tr>\n<tr>\n<td>3 Years<\/td>\n<td>52.50%<\/td>\n<td>68<\/td>\n<\/tr>\n<tr>\n<td>5 Years<\/td>\n<td>92.15%<\/td>\n<td>58<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Returns are simple price changes and are not annualised. The long-term record of the vehicle finance stock is solid, but the recent run is modest. The 1-year return of 9.46% ranks only 74th, and the 6-month return of 4.97% ranks 90th, because the vehicle finance stock has cooled off after hitting a record high in March 2026.<\/p>\n<p>Working back from the current price, this vehicle finance stock was around Rs 2,430 five years ago and near Rs 3,060 three years ago. The 52-week range is Rs 4,000 to Rs 5,642, so the vehicle finance stock now sits about 17% below its peak and about 17% above its low.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Did_This_Vehicle_Finance_Stock_Rise_Over_5_Years\"><\/span><strong>Why Did This Vehicle Finance Stock Rise Over 5 Years?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This vehicle finance stock grew its loan book, total income and earnings per share year after year, and the market rewarded that consistency with a steady re-rating. The five-year journey had three phases.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Phase_1_Post-Pandemic_Recovery_in_Vehicle_Loans_FY22_to_FY23\"><\/span><strong>Phase 1: Post-Pandemic Recovery in Vehicle Loans (FY22 to FY23)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In 2021, when this vehicle finance stock traded near Rs 2,430, commercial vehicle sales were climbing out of a deep slump. As freight demand and infrastructure spending picked up, fleet operators returned to buy trucks, and the vehicle finance stock benefited as disbursements rose.<\/p>\n<p>Earnings per share rose from Rs 106.48 in FY22 to Rs 120.49 in FY23. Book value per share climbed from about Rs 798 to Rs 900 over the same period.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Phase_2_Faster_Growth_and_a_Re-Rating_FY24_to_FY25\"><\/span><strong>Phase 2: Faster Growth and a Re-Rating (FY24 to FY25)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The middle phase was the strongest for the vehicle finance stock. Total income jumped from Rs 5,544 crore in FY23 to Rs 8,563 crore in FY25, and EPS rose to Rs 170.53. Loan growth moved into the mid-teens while credit costs stayed low.<\/p>\n<p>For a vehicle finance stock, that mix is rare. This company kept stage 3 assets under control, which is why investors paid a higher price-to-book multiple.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Phase_3_Record_Profits_and_GST_Relief_FY26_to_Q1_FY27\"><\/span><strong>Phase 3: Record Profits and GST Relief (FY26 to Q1 FY27)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>FY26 began with headwinds from global trade tariffs, but conditions improved in the second half after GST 2.0 reforms lowered costs for vehicle buyers. Standalone PAT for FY26 rose 19% to Rs 1,834 crore, and consolidated PAT reached approximately Rs 2,059 crore. FY26 disbursements came in at Rs 32,321 crore.<\/p>\n<p>The vehicle finance stock touched a record Rs 5,640 on 4 March 2026 after strong December-quarter numbers. The Q1 FY27 update in August 2026 added fresh support, with disbursements up 22% and consolidated profit up 34%. The shares gained over 2% on results day, closing near Rs 4,784.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Steady_Support_From_the_Group_Businesses\"><\/span><strong>Steady Support From the Group Businesses<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Sundaram Finance also owns stakes in an asset manager, a home loan company and an insurer. In Q1 FY27, the asset management arm managed approximately Rs 90,089 crore, the home loan arm disbursed Rs 1,643 crore and the insurance arm reported net profit of Rs 135 crore. These businesses add value that a pure vehicle finance stock would not have.<\/p>\n<p style=\"margin-top:24px;\"><strong>Check the Univest Screener for Live Fundamentals of High-Return Stocks<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Sundaram_Finance_Q1_FY27_Results_AUM_NIM_and_Asset_Quality\"><\/span><strong>Sundaram Finance Q1 FY27 Results: AUM, NIM and Asset Quality<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Q1 FY27 was one of the best quarters in recent years for this vehicle finance stock. Standalone AUM grew 17% to Rs 62,275 crore, and net interest income rose 19% to Rs 925 crore. Asset quality also improved.<\/p>\n<table>\n<thead>\n<tr>\n<th>Metric<\/th>\n<th>Q1 FY26<\/th>\n<th>Q1 FY27<\/th>\n<th>Change<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Disbursements (Rs Cr)<\/td>\n<td>7,310<\/td>\n<td>8,947<\/td>\n<td>+22%<\/td>\n<\/tr>\n<tr>\n<td>Standalone AUM (Rs Cr)<\/td>\n<td>53,278<\/td>\n<td>62,275<\/td>\n<td>+17%<\/td>\n<\/tr>\n<tr>\n<td>Consolidated total income (Rs Cr)<\/td>\n<td>2,353<\/td>\n<td>2,653<\/td>\n<td>+12.8%<\/td>\n<\/tr>\n<tr>\n<td>Standalone PAT (Rs Cr)<\/td>\n<td>429<\/td>\n<td>522<\/td>\n<td>+22%<\/td>\n<\/tr>\n<tr>\n<td>Consolidated PAT (Rs Cr)<\/td>\n<td>475<\/td>\n<td>636<\/td>\n<td>+34%<\/td>\n<\/tr>\n<tr>\n<td>Gross NPA<\/td>\n<td>2.66%<\/td>\n<td>2.28%<\/td>\n<td>Improved<\/td>\n<\/tr>\n<tr>\n<td>Net NPA<\/td>\n<td>1.71%<\/td>\n<td>1.35%<\/td>\n<td>Improved<\/td>\n<\/tr>\n<tr>\n<td>Gross Stage 3<\/td>\n<td>1.91%<\/td>\n<td>1.71%<\/td>\n<td>Improved<\/td>\n<\/tr>\n<tr>\n<td>Net Stage 3<\/td>\n<td>1.08%<\/td>\n<td>0.88%<\/td>\n<td>Improved<\/td>\n<\/tr>\n<tr>\n<td>ROA<\/td>\n<td>2.91%<\/td>\n<td>3.06%<\/td>\n<td>Up 15 bps<\/td>\n<\/tr>\n<tr>\n<td>ROE<\/td>\n<td>16.70%<\/td>\n<td>17.69%<\/td>\n<td>Up 99 bps<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The net interest margin came in at approximately 5.43%. Management expects margins to hold in a 5.4% to 5.5% range, as lower loan yields are offset by a falling cost of funds.<\/p>\n<p>One caution is that stage 3 assets rose sequentially from the March quarter, which is common in the first quarter for a vehicle finance stock. On a yearly basis, however, both gross and net stage 3 ratios are lower.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Five-Year_Financial_Trend_of_the_Vehicle_Finance_Stock\"><\/span><strong>Five-Year Financial Trend of the Vehicle Finance Stock<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The yearly numbers explain the long-term rise better than any single quarter.<\/p>\n<table>\n<thead>\n<tr>\n<th>Year<\/th>\n<th>Total Income (Rs Cr)<\/th>\n<th>EPS (Rs)<\/th>\n<th>Book Value per Share (Rs)<\/th>\n<th>Dividend per Share (Rs)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>FY22<\/td>\n<td>5,146<\/td>\n<td>106.48<\/td>\n<td>798<\/td>\n<td>20<\/td>\n<\/tr>\n<tr>\n<td>FY23<\/td>\n<td>5,544<\/td>\n<td>120.49<\/td>\n<td>900<\/td>\n<td>27<\/td>\n<\/tr>\n<tr>\n<td>FY24<\/td>\n<td>7,286<\/td>\n<td>130.31<\/td>\n<td>1,005<\/td>\n<td>30<\/td>\n<\/tr>\n<tr>\n<td>FY25<\/td>\n<td>8,563<\/td>\n<td>170.53<\/td>\n<td>1,197<\/td>\n<td>35<\/td>\n<\/tr>\n<tr>\n<td>FY26<\/td>\n<td>9,873<\/td>\n<td>186.81<\/td>\n<td>1,351<\/td>\n<td>40<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Total income grew about 92% from FY22 to FY26, almost the same as the 92.15% share price return. EPS grew about 75% and dividends doubled. The rally rests on fundamentals rather than hype.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Who_Owns_the_Vehicle_Finance_Stock_Shareholding_Trend\"><\/span><strong>Who Owns the Vehicle Finance Stock? Shareholding Trend<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ownership of this vehicle finance stock is stable. Promoters hold approximately 37.21%. Domestic institutions have added to their stake, while foreign investors have trimmed slightly.<\/p>\n<table>\n<thead>\n<tr>\n<th>Holder<\/th>\n<th>Jun 2025<\/th>\n<th>Sep 2025<\/th>\n<th>Dec 2025<\/th>\n<th>Mar 2026<\/th>\n<th>Jun 2026<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Promoters<\/td>\n<td>37.22%<\/td>\n<td>37.22%<\/td>\n<td>37.21%<\/td>\n<td>37.21%<\/td>\n<td>37.21%<\/td>\n<\/tr>\n<tr>\n<td>FIIs<\/td>\n<td>18.81%<\/td>\n<td>19.06%<\/td>\n<td>19.13%<\/td>\n<td>18.97%<\/td>\n<td>18.58%<\/td>\n<\/tr>\n<tr>\n<td>DIIs<\/td>\n<td>7.82%<\/td>\n<td>7.37%<\/td>\n<td>7.43%<\/td>\n<td>7.69%<\/td>\n<td>8.00%<\/td>\n<\/tr>\n<tr>\n<td>Public<\/td>\n<td>35.35%<\/td>\n<td>35.55%<\/td>\n<td>35.43%<\/td>\n<td>35.34%<\/td>\n<td>35.43%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>DII holding rose from 7.37% in September 2025 to 8.00% in June 2026, and mutual fund ownership rose to about 5.57% from 5.14% a quarter earlier. Several mid-cap funds hold the vehicle finance stock. FII holding eased to 18.58% from a peak of 19.13% in December 2025.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_the_Sundaram_Finance_Share_Price_Fairly_Valued\"><\/span><strong>Is the Sundaram Finance Share Price Fairly Valued?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Sundaram Finance share price trades at a PE of approximately 23.5 on trailing EPS of Rs 199.80, compared with an industry PE of about 19.1. The price-to-book ratio is around 3.5 on a book value of Rs 1,340.60 per share.<\/p>\n<p>That premium reflects the long record of low bad loans and steady growth. It also means the vehicle finance stock needs to keep delivering to justify its multiple. The dividend yield is around 0.85%, and debt-to-equity is about 4.7 times, which is normal for a lender of this size.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Risks_for_the_Vehicle_Finance_Stock\"><\/span><strong>Risks for the Vehicle Finance Stock<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>No lender is risk-free, and this vehicle finance stock has clear pressure points.<\/p>\n<p><strong>Vehicle cycle risk:<\/strong> Commercial vehicle demand is cyclical. A slowdown in freight, mining or construction could hit both disbursements and repayment capacity.<\/p>\n<p><strong>Monsoon and rural stress:<\/strong> Tractor and small truck loans depend on rural incomes. A weak monsoon could push credit costs above the 77 to 82 basis points built into analyst estimates.<\/p>\n<p><strong>Margin pressure:<\/strong> NIM has already dipped to about 5.43%. If the cost of funds does not fall as expected, profit growth could slow.<\/p>\n<p><strong>Competition:<\/strong> Banks and larger NBFCs chase the same borrowers as this vehicle finance stock, which can squeeze yields.<\/p>\n<p><strong>Valuation and momentum:<\/strong> The vehicle finance stock trades at a premium to the industry and has lagged recently, with a 6-month rank of 90 out of 101. A premium valuation leaves less room for disappointment.<\/p>\n<p style=\"margin-top:24px;\"><strong>Download the <a href=\"https:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&amp;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track the Sundaram Finance share price live<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Sundaram_Finance_Share_Analyst_View\"><\/span><strong>Sundaram Finance Share: Analyst View<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Analyst sentiment on this vehicle finance stock is positive but measured. After the Q1 FY27 results, a domestic brokerage kept an Accumulate rating, pointing to steady AUM growth and stable margins.<\/p>\n<p>The brokerage expects AUM growth of about 17% in FY27 and 16% in FY28, with NIM range-bound near 5.4% to 5.5%. It flagged geopolitical uncertainty and a possible monsoon shortfall as the main risks to asset quality.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Sundaram_Finance_Share_Price_Target\"><\/span><strong>Sundaram Finance Share Price Target<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The latest verified Sundaram Finance share price target is Rs 5,070, set by a domestic brokerage on 4 August 2026. It values the core lending business at Rs 4,149 per share, or about 2.7 times adjusted book value, and adds Rs 1,152 for subsidiaries after a 20% holding company discount.<\/p>\n<p>From around Rs 4,670, this Sundaram Finance share price target implies upside of roughly 8.6%. It sits below the 52-week high of Rs 5,642, so no sharp re-rating is expected for the vehicle finance stock.<\/p>\n<p>Traders tracking this vehicle finance stock often watch Rs 4,000, the 52-week low, as a support zone and the March 2026 high of Rs 5,640 as resistance. Any target is an estimate and can change each quarter.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This vehicle finance stock has earned its 92% gain the slow way. Total income nearly doubled, EPS rose 75%, dividends doubled and asset quality stayed among the best in the sector. The Sundaram Finance share price has tracked that growth closely over five years.<\/p>\n<p>The recent picture is softer. The 1-year return is only 9.46%, and the vehicle finance stock is about 17% below its March 2026 peak. For long-term investors, the Q1 FY27 numbers suggest this vehicle finance stock is still compounding. Anyone considering the vehicle finance stock should watch margins, credit costs and the commercial vehicle cycle closely, and consult a SEBI-registered advisor before investing.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information and may or may not be accurate. Please verify all data independently before making any investment decision. Past returns do not guarantee future returns. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Which_vehicle_finance_stock_rose_92_in_5_years\"><\/span><strong>Which vehicle finance stock rose 92% in 5 years?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Sundaram Finance (NSE: SUNDARMFIN) is the vehicle finance stock that gained approximately 92.15% over five years as of 10 September 2026. It ranked 58th among 101 large-cap and mid-cap NSE stocks on 5-year returns.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_did_the_Sundaram_Finance_share_price_rise_over_5_years\"><\/span><strong>Why did the Sundaram Finance share price rise over 5 years?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The Sundaram Finance share price rose because the business grew steadily. Total income nearly doubled from Rs 5,146 crore in FY22 to Rs 9,873 crore in FY26, EPS rose about 75% and asset quality stayed strong.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_were_Sundaram_Finance_Q1_FY27_results\"><\/span><strong>What were Sundaram Finance Q1 FY27 results?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> In Q1 FY27, consolidated PAT rose 34% to Rs 636 crore and standalone PAT rose 22% to Rs 522 crore. For this vehicle finance stock, disbursements grew 22% to Rs 8,947 crore and AUM grew 17% to Rs 62,275 crore.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_NIM_and_NPA_of_Sundaram_Finance\"><\/span><strong>What is the NIM and NPA of Sundaram Finance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The net interest margin was about 5.43% in Q1 FY27. Gross NPA stood at 2.28% and net NPA at 1.35%, while gross and net stage 3 assets were 1.71% and 0.88%, all lower than a year earlier.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_52-week_high_and_low_of_Sundaram_Finance\"><\/span><strong>What is the 52-week high and low of Sundaram Finance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The vehicle finance stock has a 52-week high of Rs 5,642 and a low of Rs 4,000. The stock hit its record high of around Rs 5,640 on 4 March 2026 and traded near Rs 4,670 on 11 September 2026.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_Sundaram_Finance_share_price_target\"><\/span><strong>What is the Sundaram Finance share price target?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> A domestic brokerage set a Sundaram Finance share price target of Rs 5,070 on 4 August 2026 with an Accumulate rating. That implies roughly 8.6% upside from about Rs 4,670, but targets are estimates and can change.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_Sundaram_Finance_overvalued\"><\/span><strong>Is Sundaram Finance overvalued?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Sundaram Finance, the vehicle finance stock, trades at a PE of about 23.5 against an industry PE of around 19.1 and a price-to-book of about 3.5. The premium reflects its strong asset quality record, but it leaves less room for disappointment.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_this_vehicle_finance_stock_a_good_long-term_investment\"><\/span><strong>Is this vehicle finance stock a good long-term investment?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The five-year record shows steady compounding, but the 1-year return is only 9.46% and valuation is above the industry average. Investors should track margins, credit costs and the vehicle cycle and consult a SEBI-registered advisor before investing.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Which vehicle finance stock rose 92% in 5 years?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Sundaram Finance (NSE: SUNDARMFIN) is the vehicle finance stock that gained approximately 92.15% over five years as of 10 September 2026. It ranked 58th among 101 large-cap and mid-cap NSE stocks on 5-year returns.\"}},{\"@type\":\"Question\",\"name\":\"Why did the Sundaram Finance share price rise over 5 years?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The Sundaram Finance share price rose because the business grew steadily. Total income nearly doubled from Rs 5,146 crore in FY22 to Rs 9,873 crore in FY26, EPS rose about 75% and asset quality stayed strong.\"}},{\"@type\":\"Question\",\"name\":\"What were Sundaram Finance Q1 FY27 results?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"In Q1 FY27, consolidated PAT rose 34% to Rs 636 crore and standalone PAT rose 22% to Rs 522 crore. For this vehicle finance stock, disbursements grew 22% to Rs 8,947 crore and AUM grew 17% to Rs 62,275 crore.\"}},{\"@type\":\"Question\",\"name\":\"What is the NIM and NPA of Sundaram Finance?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The net interest margin was about 5.43% in Q1 FY27. Gross NPA stood at 2.28% and net NPA at 1.35%, while gross and net stage 3 assets were 1.71% and 0.88%, all lower than a year earlier.\"}},{\"@type\":\"Question\",\"name\":\"What is the 52-week high and low of Sundaram Finance?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The vehicle finance stock has a 52-week high of Rs 5,642 and a low of Rs 4,000. The stock hit its record high of around Rs 5,640 on 4 March 2026 and traded near Rs 4,670 on 11 September 2026.\"}},{\"@type\":\"Question\",\"name\":\"What is the Sundaram Finance share price target?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"A domestic brokerage set a Sundaram Finance share price target of Rs 5,070 on 4 August 2026 with an Accumulate rating. 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Investors should track margins, credit costs and the vehicle cycle and consult a SEBI-registered advisor before investing.\"}}]}<\/script><\/div>\n","protected":false},"excerpt":{"rendered":"<p>One NBFC focused on truck, car and tractor loans nearly doubled investor money in five years. Here is what drove the 92% gain and the risks to weigh now.<\/p>\n","protected":false},"author":29,"featured_media":243152,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[845],"tags":[],"class_list":["post-243154","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-best-stocks"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["243152"],"rank_math_title":["Vehicle Finance Stock Up 92% in 5 Years: What Drove the Gains"],"rank_math_description":["This vehicle finance stock rose approximately 92% in 5 years as income nearly doubled and asset quality stayed strong. See Q1 FY27 numbers, targets and key risks."],"rank_math_focus_keyword":["vehicle finance stock"],"rank_math_robots":["a:2:{i:0;s:7:\"noindex\";i:1;s:8:\"nofollow\";}"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest.in\/blogs-2\/wp-content\/uploads\/2026\/09\/vehicle-finance-stock-rises-92-percent-in-5-years.png","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/243154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=243154"}],"version-history":[{"count":1,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/243154\/revisions"}],"predecessor-version":[{"id":243156,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/243154\/revisions\/243156"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/243152"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=243154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=243154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=243154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}