Billionaire Damani takes 2.37% stake in Sundaram Finance
Radhakishan Damani’s investment vehicle has built a 2.37% stake in Sundaram Finance, signaling a potential value play by one of India’s most closely tracked investors in a non-banking financial stock that has dropped sharply from its March peak.
Bright Star Investments, the primary investment vehicle for DMart founder Radhakishan Damani, acquired a 2.37% stake in Sundaram Finance during the first quarter of the 2027 financial year. Regulatory filings show the firm held 26.3 lakh shares at the end of the period. Under SEBI rules, Bright Star held no disclosable position in the non-banking financial company during the preceding December and March quarters, meaning any prior stake was below the 1% threshold.
Damani’s trades carry outsized weight among Indian market participants. The investor commands an estimated $16 billion net worth and a public equity portfolio valued at roughly Rs 1.8 lakh crore. While his largest position remains Avenue Supermarts, his targeted investments in firms like VST Industries, United Breweries, and Blue Dart are treated as validation of underlying value by domestic funds.
His arrival at Sundaram Finance comes after a severe price correction. The stock reached a lifetime high of Rs 5,642 in March before plummeting more than 29% over roughly a month to hit Rs 4,000 in June. The shares were trading around Rs 4,404.80 on Thursday afternoon, representing a drop of roughly 2% over the past month and a year-to-date decline of more than 17%.
For portfolio managers, the critical question is whether Damani’s entry marks a bottom for the non-banking financial company. Despite the sharp recent pullback, which includes a 15% negative return over the past 12 months, Sundaram Finance’s longer-term track record remains intact. The stock has still generated a 68% return over three years and a 71% gain over five years.
The accumulation by a prominent long-term investor shifts the focus toward the fundamental resilience of the lending business versus its current market valuation. Market professionals will now watch whether Bright Star increases its position in subsequent quarters, which would further confirm a contrarian bet on the NBFC sector's recovery.
