Bright Star Investments, linked to Radhakishan Damani, appears to be actively managing its stake in Sundaram Finance, which exhibits strong operating momentum and strategic repositioning despite a stable shareholding position gauged from disclosures, signalling active portfolio movements in an evolving market backdrop.
Radhakishan Damani-linked Bright Star Investments Private Limited appears to have taken a more active route in Sundaram Finance than a simple buy-and-hold pattern would suggest. Trade Brains reported that the entity has repeatedly resurfaced with the same 2.37% stake in the vehicle financier, even though the name disappeared from shareholding disclosures in several quarters. That typically happens only when a holding slips below the 1% threshold that requires separate disclosure, suggesting the position was trimmed and later rebuilt. Sundaram Finance’s shares were last quoted by Trade Brains at about ₹4,642.75, while Moneycontrol showed the stock at ₹4,563.65 on August 28, 2026, with a market value of about ₹50,823 crore and a price-to-earnings ratio of 22.90. Trade Brains had earlier cited a market capitalisation of roughly ₹51,582 crore and a higher P/E multiple.
The broader case for the stock rests on operating momentum. Trade Brains said Sundaram Finance, a 72-year-old non-banking finance company, posted assets under management of ₹62,275 crore as of June 30, 2026, up 17% from a year earlier. Profit after tax rose 22% to ₹522 crore, while disbursements increased 22% to ₹8,947 crore and net interest income climbed 19% to ₹925 crore. The company also reported better asset quality, with gross Stage 3 assets at 1.71% and net Stage 3 assets at 0.88%, both lower than a year earlier.
That improvement reflects a more supportive backdrop for lenders tied to the real economy. Trade Brains said commercial vehicle, tractor and passenger car sales all strengthened during the quarter, helping Sundaram Finance’s vehicle and equipment lending franchise. Because the company focuses on financing trucks, farm equipment, passenger vehicles and small business loans, stronger demand in those segments tends to flow through into higher disbursements and steadier loan growth. The company also reported a return on equity of 17.7% for the quarter, rising to 18.2% on a core basis after stripping out investments in subsidiaries and its insurance business.
For investors, the picture is therefore two-fold: an ace investor’s stake that looks unchanged only on the surface, and a lender that has been posting solid numbers underneath. According to Trade Brains, Bright Star’s repeated fall-below-and-return-above the disclosure threshold suggests active portfolio movement rather than passivity. At the same time, Sundaram Finance’s latest quarterly performance indicates that business conditions have remained favourable for a company with deep roots in Indian vehicle finance, business lending and working capital finance, alongside interests in insurance, home finance and asset management.
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