Sundaram Finance Share Price: 11.6% CAGR in 3 Years as the Chennai Vehicle Lender Compares With L&T Finance, Chola and Bajaj Finance

Sundaram Finance previous close Rs 4,419.90. 3-year CAGR 11.6%. Up 1.4x since 10 Nov 2023. ROE 14.00%. Market cap Rs 49,132 crore.

The Sundaram Finance share price has compounded at a steady pace over three years, and the company earns a return on equity of 14.00%. Sundaram Finance, based in Chennai, is one of the oldest non-banking finance companies in India and is best known for loans on commercial vehicles and cars.

This article compares that record with L&T Finance, Cholamandalam Investment and Bajaj Finance. We calculate the three-year CAGR for all four and set the results beside market cap, valuation, return on equity and debt, using prices adjusted for corporate actions. Lenders borrow money to lend it on, so the debt figure is a normal part of the model rather than a warning sign.

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How Much Has the Sundaram Finance Share Price Returned in 3 Years?

The Sundaram Finance stock closed at Rs 3,183.80 on 10 November 2023 and at Rs 4,419.90 on 12 November 2026. Rs 1 lakh invested three years ago would have grown to about Rs 1.39 lakh, which is a CAGR of 11.6%. This is a price return and leaves out dividends.

CAGR condenses a bumpy three-year ride into one yearly number, which is why it is the fairest way to compare companies of different sizes. A stock such as Sundaram Finance can look spectacular on a chart and still have earned a modest yearly return, so the compounded figure keeps the comparison honest.

The Sundaram Finance share price has also followed demand for vehicle loans, the company's long record in lending against vehicles and its wide network of branches in the south.

Sundaram Finance vs L&T Finance, Cholamandalam Investment and Bajaj Finance: 3-Year CAGR Compared

The table ranks the companies by three-year CAGR. Prices on 10 November 2023 are adjusted for splits and bonuses, and the latest figures are the previous close on 12 November 2026.

Company	Close on 10 Nov 2023	Previous close (12 Nov 2026)	Price multiple	3-year CAGR
L&T Finance	Rs 140.80	Rs 282.39	2.0x	26.1%
Cholamandalam Investment	Rs 1,148.25	Rs 1,862.00	1.6x	17.5%
Bajaj Finance	Rs 738.67	Rs 1,115.00	1.5x	14.7%
Sundaram Finance	Rs 3,183.80	Rs 4,419.90	1.4x	11.6%

The Sundaram Finance stock ranks fourth of the four at 11.6%. The companies ahead are L&T Finance (26.1%), Cholamandalam Investment (17.5%) and Bajaj Finance (14.7%). L&T Finance leads the group on three-year CAGR, followed by Cholamandalam Investment, Bajaj Finance and Sundaram Finance. Sundaram Finance is the smallest of the four by market cap.

Look at the Sundaram Finance share price alongside the peers as a snapshot of the last three years. It describes what happened, and valuation and earnings will decide what happens next.

Valuation and Quality Compared

Company	Market cap	P/E	Industry P/E	ROE	Debt to equity
Bajaj Finance	Rs 6,91,517 crore	31.34	17.97	17.61%	4.08
Cholamandalam Investment	Rs 1,53,087 crore	24.60	17.80	18.02%	6.72
L&T Finance	Rs 70,732 crore	20.58	17.97	11.70%	4.23
Sundaram Finance	Rs 49,132 crore	21.85	17.97	14.00%	4.69

By market cap, Bajaj Finance is the largest of the group at Rs 6,91,517 crore, while the Sundaram Finance stock stands at Rs 49,132 crore, about 7% of that size. On earnings, Sundaram Finance shares trade at a P/E of 21.85 against an industry P/E of 17.97, a premium of about 22%, which signals that the market expects faster earnings growth. Peer multiples are L&T Finance at 20.58, Cholamandalam Investment at 24.60 and Bajaj Finance at 31.34.

Return on equity is 14.00% for the Sundaram Finance stock, which ranks third among the four, and debt to equity stands at 4.69. Trailing EPS is Rs 202.37. Finance companies are valued on return on equity and on the quality of their loan books, so the P/E should be read together with ROE and the way the company funds its lending.

What Is Driving the Sundaram Finance Stock?

Sundaram Finance gives loans for commercial vehicles, passenger cars and farm equipment, and it has built relationships with transport operators over many decades. Because the vehicle itself is held as security, the lender can recover value if a borrower fails to repay.

The company has also entered mutual funds, housing finance and general insurance through group companies. Its debt to equity of 4.69 reflects its funding through deposits, bonds and bank loans, which is common for a lender of this kind.

Followers of the Sundaram Finance share price usually track growth in vehicle loan disbursals, the share of bad loans, the cost of borrowing and the return on equity.

How the Established Players Stack Up

L&T Finance is a Mumbai-based lender in the Larsen and Toubro group that focuses on rural, two-wheeler, small business and home loans. It compounded at 26.1% a year, on a market cap of Rs 70,732 crore and an ROE of 11.70%.

Cholamandalam Investment is a Chennai-based lender from the Murugappa Group that gives vehicle loans, home loans and loans against property. It compounded at 17.5% a year, on a market cap of Rs 1,53,087 crore and an ROE of 18.02%.

Bajaj Finance is a Pune-based lender that focuses on consumer durable loans, personal loans, small business finance and mortgages. It compounded at 14.7% a year, on a market cap of Rs 6,91,517 crore and an ROE of 17.61%.

What Should Investors Track Next?

Three things are worth watching on the Sundaram Finance share price. First, growth in vehicle loan disbursals. Second, the cost of funds as interest rates change. Third, the share of bad loans.

At a P/E of 22, the stock trades above the industry P/E of 18, and its ROE is 14.00%. Debt to equity of 4.69 reflects its lending model, so follow quarterly numbers closely.

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How to Compare NBFC Stocks Yourself

You can repeat this exercise for any pair of stocks, including the Sundaram Finance stock against its peers. Note the adjusted closing price on the base date, take the latest close, divide one by the other, raise the result to the power of one third and subtract one. Then place the CAGR next to market cap, P/E against the industry P/E, ROE and debt to equity. Benchmark the result against the Nifty 50 as well, so you know whether the stock beat the broader market.

A stock that scores well on growth but weakly on quality, or the reverse, deserves closer study before it enters a portfolio. When tracking the Sundaram Finance share price, the same four checks give a more complete picture than price alone.

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A Long-Established Vehicle Lender With a Steady Three-Year Record

The Sundaram Finance share price compounded at 11.6% a year over three years, against L&T Finance at 26.1%, Cholamandalam Investment at 17.5% and Bajaj Finance at 14.7%. Its ROE of 14.00% is the third highest of the four, and its P/E of 21.85 is the second lowest.

L&T Finance brings the faster run, Cholamandalam Investment brings the highest ROE and Bajaj Finance brings the largest market cap. Sundaram Finance brings a long track record in vehicle lending. The choice depends on which lender you prefer.

Frequently Asked Questions

What is the Sundaram Finance share price today?

Ans. Sundaram Finance closed at Rs 4,419.90 on 12 November 2026, according to NSE data. It has a market cap of Rs 49,132 crore and a P/E of 21.85. Check live quotes before acting, as prices change every trading day.

What is the 3-year CAGR of the Sundaram Finance stock?

Ans. Sundaram Finance delivered a price CAGR of 11.6% over three years, moving from Rs 3,183.80 on 10 November 2023 to Rs 4,419.90 on 12 November 2026. The figure excludes dividends and uses adjusted closing prices.

Is Sundaram Finance better than Cholamandalam Investment?

Ans. Cholamandalam Investment delivered a higher three-year CAGR at 17.5% than Sundaram Finance at 11.6%. Cholamandalam Investment is much larger by market cap at Rs 1,53,087 crore against Rs 49,132 crore and has a higher ROE at 18.02% against 14.00%, while Sundaram Finance trades at a lower P/E of 21.85 against 24.60. The better choice depends on your view of each business.

What does Sundaram Finance do?

Ans. Sundaram Finance is a Chennai-based non-banking finance company, one of the oldest in India, that is best known for loans on commercial vehicles and cars.

Is the Sundaram Finance stock debt free?

Ans. The debt to equity ratio of the Sundaram Finance stock is 4.69 and its return on equity is 14.00%. Always check the latest balance sheet for current figures, as debt levels change with expansion plans.

Is Sundaram Finance expensive compared with the industry?

Ans. Sundaram Finance trades at a P/E of 21.85 against an industry P/E of 17.97. A higher multiple reflects expectations of faster growth, which the company must deliver through earnings.

Which NBFC stock gave the highest return in 3 years?

Ans. Among the companies compared here, L&T Finance delivered the highest three-year CAGR at 26.1%, followed by Cholamandalam Investment at 17.5%. Past returns do not guarantee future performance.

How do I calculate CAGR for a stock?

Ans. Divide the latest price by the starting price, raise the result to the power of one divided by the number of years, and subtract one. Multiply by 100 for a percentage. Use split and bonus adjusted prices for accurate results.