Sundaram Finance - Offer Investors a Bonus of 3k Crs due to Demerger

(s) #21

Sundaram clayton and Sundaram finace are 70% over last year lows so either markets still believe in the integrity of the management or may be it is Euphoria making the stocks buoyant, I believe the markets reaction to SF de merger has been positive so far. The growth path is clearly visible and all the subsidiaries are in fast lane. It is a buy on dips.


Sundaram Finance - Pick of the Week - 231017.pdf (1.4 MB)

(SSRN) #23

The holding company has listed on NSE. Any views on fair value.

(sairaghav) #24

It was valued at 150 by MSCI Small Cap index after allotment but before listing. Looks like we’ll see successive lower circuit days until this value is reached. However the acquisition cost for the two (SFL & SFHL) are 93.89% and 6.11% according to the notice on February 22.

By this logic, the fair value might be closer to 110~120. Looks like there is a steady queue of sellers every day on this counter until we see such levels.