Sundaram Finance vs Poonawalla Fincorp: Here's what market experts say

Shares of non-banking finance companies (NBFCs) have been in limelight off late following the big ticket Shriram Finance-MUFG deal. The Japan-based banker entered into a pact with Shriram Finance to acquire up to 20 per cent equity stake in the NBFC for an investment of ₹39,620 crore last week.  Since then, the Shriram Finance stock has surged nearly 11 per cent and is seen trading at record highs. Brokerage firms such as ICICI Securities and Motilal Oswal expect further upside in the share price. READ MORE  Meanwhile, among other NBFC shares - Mahindra & Mahindra Finance has also surged nearly 10 per cent. Fusion Finance, Poonawalla Fincorp, Baid Finserv and Sundaram Finance have gained around 6 - 7 per cent each.  CATCH STOCK MARKET UPDATES TODAY LIVE 

Sundaram Finance vs. Poonawalla Fincorp:

  Sundaram Finance has a strong proven track-record, while Poonawalla Fincorp is shaping up in the right direction, believe analysts.  G Chokkalingam, Founder & MD at Equinomics Research & Advisory highlights that in terms of quality and proven-track record in earnings, Sundaram Finance has an edge over Poonawalla Fincorp. Sundaram has the backing of over 1 lakh fixed deposit investors, the analyst adds.  Echoing a similar view, Kranthi Bathini, Equity Strategist at WealthMills Securities says that apart from the proven track-record, Sundaram Finance has a strong reach and well-established business points.  "In the lending business, the key challenge is the risk and recovery process, in terms of which Sundaram Finance has a proven record," explains Bathini. In comparison, Poonawalla is shaping up well post Cyrus Poonawalla acquisition, the company has become aggressive in the NBFC lending space, the analyst said.  Having said that, Sundaram Finance can be more suited for moderate risk investors, while Poonawalla Fincorp for investors with a higher risk appetite, Bathini said.  Chokkalingam explains that Sundaram through its subsidiaries have successfully built its - home finance, asset management company (AMC) and insurance business. Going forward, these businesses could help in value unlocking potential. Equinomics Research & Advisory has an existing 'BUY' recommendation on Sundaram Finance with a target price of ₹5,755, the analyst stated.  ALSO READ | Hero MotoCorp 2W demand to stay strong; rural, exports boost: Motilal Oswal  Here's how Sundaram Finance & Poonawalla Fincorp are placed on charts: 

Sundaram Finance

Current Market Price: ₹5,087 

 

 

  The daily chart shows that Sundaram Finance stock has swung above and below its long-term 200-day moving average (200-DMA) on multiple occasions throughout the calendar year 2025. At present, the stock is seen trading above the 200-DMA which stands at ₹4,800.   

Poonawalla Fincorp

Current Market Price: ₹475 

 

  The above chart shows that Poonawalla Fincorp stock has been consistently holding above the 200-DMA since April 2025. The 200-DMA now stands at ₹430.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.