Ace investor Radhakishan Damani picks stake in this NBFC stock

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Building a successful and resilient stock portfolio takes a few careful steps.

First, set clear investment goals and choose a strategy that aligns with your personal preferences. But it’s also important to be engaged in the market and your investments.

Learning from seasoned investors and following their tried-and-true methods can be beneficial. For instance, the renowned investor Radhakishan Daman is frequently quoted for his successful market strategies, which consistently garner attention.

In this editorial, we'll discuss a stock in which he has recently bought a stake.

Radhakishan Damani is a Mumbai-based entrepreneur, businessman, and billionaire investor who founded India's mega-retail chain D-Mart.

Born on 15 March 1954 to an Indian Marwari family, born and brought up in Bikaner, Rajasthan, RK Damani is one of the few self-made billionaires in the country.

Damani is considered to be one of the Big Bulls in the Indian stock market. He manages his portfolio through his investment firms, Bright Star Investments and Derive Trading & Resorts.

Over the years, he has invested in cement, technology, and retail sectors. He is considered India's retail king following the March 2017 IPO of his supermarket chain, Avenue Supermarts.

Damani has picked 2.63 million shares in finance company Sundaram Finance, aggregating ₹1,163 crore. He held no stake in the company in the prior two quarters.

While the reasons for his hike remain unclear, here is a point that can explain the decision.

The company reported strong results for FY26. Its assets under management (AUM) stood at ₹59,908 crore, up 16.4% from FY25.

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%.

The company's net profit rose to ₹2,058.9 crore in FY26 from ₹1,879.4 crore in the previous year.

Overall, the company delivered a strong performance in FY26, with improvements across most key financial metrics.

This may be one of the reasons Radhakishan Damani picked up a stake in the stock.

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.

Rising demand for commercial vehicles, passenger cars, and equipment financing, along with India's expanding infrastructure and logistics sectors, should drive loan growth.

The company is also seeing increasing contribution from its housing finance, insurance, and asset management businesses, creating a diversified earnings base.

Continued investments in digital lending and customer service are expected to improve efficiency and expand its reach. With healthy capital adequacy, consistent profitability, and prudent risk management, Sundaram Finance may deliver sustainable earnings.

However, competition in this business is fierce and volatility in interest rates could also be a concern.

In the past five days, the Sundaram Finance stock has fallen from ₹4,491 to ₹4,430.

The stock touched its 52-week high of ₹5,640 on 4 March 2026 and its 52-week low of ₹4,000 on 4 June 2026.

Sundaram Finance is one of India's oldest and most respected non-banking financial companies (NBFCs), established in 1954 and part of the TVS Group.

The company primarily provides financing for commercial vehicles, passenger vehicles, construction equipment, tractors, and small businesses.

It has built a reputation for prudent lending, excellent asset quality, and consistent profitability.

Beyond lending, Sundaram Finance has diversified into housing finance, insurance, asset management, and wealth management through its subsidiaries.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com

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