Damani Holds Sundaram Finance Stake Amid 17% Q1 Growth

Veteran investor Radhakishan Damani, through Bright Star Investments, has consistently held a 2.37% stake in Sundaram Finance Ltd since March 2016. This position was maintained despite periods of active trading that saw the stake fluctuate.

Damani’s approach to the 72-year-old Non-Banking Financial Company (NBFC) indicates an active trading strategy rather than a passive hold. Shareholding data shows instances where his stake dipped below 1%, followed by subsequent repurchases.

Damani’s Shareholding Dynamics

• Initial consistent stake: 2.37%
• Periods of selling: Stake dipped below 1%
• Subsequent repurchases: Restored to original 2.37% position

Sundaram Finance reported robust financial results for the June 2026 quarter, demonstrating significant growth across key metrics. The company’s performance was primarily driven by a strong auto sector, which remains its core lending focus.

Key Q1 FY2027 Financial Highlights

• Assets Under Management (AUM): Increased 17% to ₹62,275 crore
• Profit After Tax: Grew 22% to ₹522 crore
• Disbursements: Rose 22% to ₹8,947 crore
• Net Interest Income: Saw a 19% increase to ₹925 crore
• Return on Equity: Stood at 17.7% (18.2% excluding subsidiaries and insurance)

The NBFC also showcased improved asset quality during the quarter, reflecting prudent financial management. Beyond its primary vehicle finance operations, Sundaram Finance maintains a diversified portfolio of financial services.

Asset Quality & Group Operations

• Gross Stage 3 assets: 1.71%
• Net Stage 3 assets: 0.88%
• Group-level assets managed: Over ₹1,82,000 crore
• Additional operations: General insurance joint venture, home finance subsidiary, asset management arm

Despite the complexity of Damani’s trading patterns, the underlying business fundamentals of Sundaram Finance remain solid, driven by consistent growth and diversified operations.