Ace Investor Radhakishan Damani Picks Stake in This NBFC Stock

Which Stock Did Radhakishan Damani Buy and Why?

Radhakishan Damani has picked a stake in the finance company Sundaram Finance.

He has purchased 2,630,434 shares aggregating Rs 11.63 billion (bn). He held no stake in the company in the prior two quarters.

While the reasons for his hike remain unclear, here is a point that can explain the decision.

Strong Financial Performance

The company reported strong results for FY26. Assets under management stood at Rs 599.08 bn, up 16.4% from FY25 levels.

The return on assets improved to 3.03% in FY26 from 2.85% in FY25. Similarly, ROE improved to 17.5% from 16.3%. Net profits too kept pace, improving to Rs 20,589 m vs Rs 18,794 m YoY. Overall, the company reported good numbers in FY26, across most parameters.

This maybe one of the reasons for Radhakishan Damani to pick a stake in the stock.

What Next?

Sundaram Finance is well positioned for steady long-term growth, supported by its conservative lending practices, strong asset quality, and trusted brand in the vehicle finance market.

Rising demand for commercial vehicles, passenger cars, and equipment financing, along with India's expanding infrastructure and logistics sectors, should drive loan growth.

The company is also seeing increasing contribution from its housing finance, insurance, and asset management businesses, creating a diversified earnings base.

Continued investments in digital lending and customer service are expected to improve efficiency and expand its reach. With healthy capital adequacy, consistent profitability, and prudent risk management, Sundaram Finance may deliver sustainable earnings.

However, competition in this business is fierce and volatility in interest rates could also be a concern.

How Shares of Sundaram Finance Performed?

In the past five days, the Sundaram Finance stock has fallen from Rs 4,491 to Rs 4,430.

The stock touched its 52-week high of Rs 5,640 on 4 March 2026 and its 52-week low of Rs 4,000 on 4 June 2026.

About Sundaram Finance

Sundaram Finance is one of India's oldest and most respected non-banking financial companies (NBFCs), established in 1954 and part of the TVS Group.

The company primarily provides financing for commercial vehicles, passenger vehicles, construction equipment, tractors, and small businesses.

It has built a reputation for prudent lending, excellent asset quality, and consistent profitability.

Beyond lending, Sundaram Finance has diversified into housing finance, insurance, asset management, and wealth management through its subsidiaries.

Happy investing.

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