Radhakishan Damani, the Mumbai-based billionaire investor and founder of D-Mart, has acquired a significant stake in Sundaram Finance through the purchase of 2.63 million shares worth ₹1,163 crore. According to reports from Equitymaster.com, this marks a notable shift as Damani held no stake in the company in the prior two quarters. The investment comes as Damani continues to expand his portfolio through his investment firms Bright Star Investments and Derive Trading & Resorts, focusing on cement, technology, and retail sectors. As per The Economic Times, Damani and his family re-entered Sundaram Finance with a 2.37% stake in the June quarter through Bright Star Investments, after previously exiting the holding in FY26.
The investment decision appears to be driven by Sundaram Finance's robust financial performance in FY26. As reported by Equitymaster.com, the company's assets under management (AUM) reached ₹59,908 crore, representing a 16.4% increase from FY25. The company's return on assets (ROA) improved to 3.03% in FY26 from 2.85% in FY25, while return on equity (ROE) increased to 17.5% from 16.3%. Additionally, net profit rose to ₹2,058.9 crore in FY26 from ₹1,879.4 crore in the previous year, demonstrating consistent growth across key financial metrics.
According to The Economic Times, Sundaram Finance stock has declined from ₹4,491 to ₹4,430 over the past five days, with the stock trading at around ₹4,404.80 apiece on Thursday afternoon. The stock reached its 52-week high of ₹5,640 on 4 March 2026 and touched its 52-week low of ₹4,000 on 4 June 2026. Sundaram Finance is one of India's oldest NBFCs, established in 1954 and part of the TVS Group, primarily providing financing for commercial vehicles, passenger vehicles, construction equipment, tractors, and small businesses. The company has diversified into housing finance, insurance, asset management, and wealth management through its subsidiaries.
As reported by Equitymaster.com, 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. The company is expected to benefit from rising demand for commercial vehicles, passenger cars, and equipment financing, along with India's expanding infrastructure and logistics sectors. The company is also seeing increasing contribution from its housing finance, insurance, and asset management businesses, creating a diversified earnings base. However, the analysis notes that competition in this business remains fierce and volatility in interest rates could be a concern for future performance.
