Sundaram Finance Poised for Further Gains; Set to Surpass ₹6,200 by Year-End
Mumbai, April 11, 2025 — Sundaram Finance, a prominent player in the non-banking financial company (NBFC) sector, continues to show significant promise as its stock has surged nearly 23% since the start of 2025. Recent technical analyses suggest that the stock could potentially reach a value of ₹6,200 by the end of the year, marking an additional upside of approximately 24%.
Rallying Performance
In recent weeks, Sundaram Finance’s stock has gained momentum, climbing over 13% from ₹4,482 to a peak of ₹5,073 within just six trading sessions. This growth can be largely attributed to favorable market conditions, including supportive measures announced by the Reserve Bank of India (RBI). The RBI’s decisions to inject approximately ₹1.9 trillion into the banking system and relax certain lending norms for NBFCs have boosted investor confidence in the sector.
Shares of Sundaram Finance have been complemented by parallel gains in other non-banking financial firms such as Bajaj Finance, Shriram Finance, Mahindra & Mahindra Financial Services, and Manappuram Finance, collectively benefiting from the RBI’s initiatives.
Expanding Horizons
Adding to the positive outlook, Sundaram Finance’s home loan division, Sundaram Home Finance, has recently expanded its operations in Chennai, with plans to disburse up to ₹50 crore over the next 12 months. The company has opened four new home loan branches in March alone, reinforcing its commitment to growth in the housing finance segment.
Technical Outlook
From a technical perspective, Sundaram Finance is currently showing a favorable trading bias across various time frames. The stock has outperformed the NSE benchmark Nifty 50 index, gaining 15.3% compared to the index’s 5.5% rise in March.
As of now, the stock is trading at ₹5,037. Analysts have identified key support levels at ₹4,937, ₹4,640, and ₹4,550, while resistance levels are projected at ₹5,185, ₹5,430, and ₹5,773. The recent formation of a "Golden Cross" pattern on the daily chart—where the 50-day moving average (DMA) crosses above the 200 DMA—is seen as a positive signal for investors.
Long-term Trends
Sundaram Finance has been on a robust growth trajectory since breaking above its 20-month moving average (MMA) in September 2022, with a remarkable gain of nearly 126% up to today’s high. The 20-MMA currently stands at ₹4,140, establishing itself as a critical support level for the stock’s long-term outlook.
Market analysts anticipate that if the stock can hold above the ₹4,640 mark, it is likely to maintain its favorable trend and could reach new highs in the upcoming months. Fibonacci analysis suggests a potential target of ₹6,235 over the next nine months, contingent upon favorable market conditions.
Conclusion
With its strong performance driven by strategic growth initiatives and positive market dynamics, Sundaram Finance appears to be a strong candidate for investors looking for opportunities in the NBFC sector. As analysts watch both technical indicators and market developments, the stock’s trajectory will continue to be closely monitored as it moves toward the end of the year.
Investors and stakeholders are encouraged to stay informed about Sundaram Finance and the broader market trends as they can significantly impact investment strategies and financial decisions moving forward.
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