atul,
I had my eye on sundaram finance since a long time having tracked it before too. Demerger just came about as a surprise for me. I liked the move by the management because post this demerger there is likely to be higher focus towards the finance business and whatever accrues out of demerger is likely to be icing on the cake.
Sundaram finance main business is CV and passenger vehicle finance, home loan, asset management and the loan book growth was not great since past few quarters and hence the stock price also went no where. But if economy revives as expected then the company would be in a sweet spot. Insurance business would have an optional value.
Companies like sundaram finance are super stocks kind of companies which dont undergo too much correction in terms of value but have time correction for long periods of time. The consolidation in SF seems like time correction which was long overdue post the stupendous run from 500 odd levels in Sep 2013 to 1600 in April 2015. Lets see how the possible breakout pans out in terms of stock price. For me levels of sub 1400 were a kind of situation where downside was limited and any positives out of demerger could provide decent upsides.