D-Mart founder Damani buys ₹1,163cr stake in Sundaram Finance
Indian billionaire Radhakishan Damani has acquired a ₹1,163 crore stake in non-banking financial company Sundaram Finance, drawing attention to the lender's robust asset growth and improving profitability.
Radhakishan Damani, the founder of retail chain D-Mart, has purchased 2.63 million shares in Sundaram Finance. The transaction, valued at ₹1,163 crore, marks a new position for the investor after he held no stake in the prior two quarters. Damani manages his portfolio through investment firms Bright Star Investments and Derive Trading & Resorts.
Regarded as one of India's most influential market participants, Damani built his reputation and wealth through strategic, long-term bets. He typically favors companies with strong fundamentals, robust asset quality, and established market positions.
Sundaram Finance, established in 1954 and part of the TVS Group, posted strong fiscal 2026 results that align with this value-focused style. Assets under management reached ₹59,908 crore, a 16.4% year-on-year increase, while net profit rose to ₹2,058.9 crore from ₹1,879.4 crore. Crucially, core profitability metrics improved, with return on assets rising to 3.03% and return on equity increasing to 17.5%.
The non-banking financial company primarily finances commercial vehicles, passenger cars, and construction equipment. Demand from India's expanding infrastructure and logistics sectors should further drive loan growth. The firm is also diversifying its earnings base through subsidiaries in housing finance, insurance, and asset management. Continued investments in digital lending are expected to improve efficiency, though the company must navigate a fiercely competitive market and potential interest rate volatility.
Damani’s entry comes amid notable price volatility for the stock. Shares hit a 52-week high of ₹5,640 on March 4, 2026, before dropping to a 52-week low of ₹4,000 on June 4, 2026. For market participants, the billionaire's ₹1,163 crore bet signals that the recent sell-off may have created a compelling entry point for a lender with healthy capital adequacy and a trusted brand.
