Check Before You Invest : Shriram Asset Management Company Ltd

BSE: 531359 NSE: ISIN: INE777G01012

| Sector: BFSI | Industry: Finance - Asset Management

Snapshot

Q.1 Which industry/sub-sector does Shriram Asset Management Company Ltd belong to?

Shriram Asset Management Company Ltd belongs to the BFSI sector, operating specifically within the Finance - Asset Management segment.

Q.2 Is Shriram Asset Management Company Ltd a good quality company?

Shriram Asset Management Company Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Shriram Asset Management Company Ltd undervalued or overvalued?

Shriram Asset Management Company Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Shriram Asset Management Company Ltd a good buy now?

Shriram Asset Management Company Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Shriram Asset Management Company Ltd?

Shriram Asset Management Company Ltd revenue growth is -16% for FY-2025, which is below its 5-year CAGR of 75.55%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Shriram Asset Management Company Ltd?

Shriram Asset Management Company Ltd Return on capital employed is -23.3% for FY-2025, which is below its 5-year historical median of -4.4%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Shriram Asset Management Company Ltd?

Shriram Asset Management Company Ltd Return on Asset is -22.5%, which is below its 5-year historical median of -5.9%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Shriram Asset Management Company Ltd?

Shriram Asset Management Company Ltd Return on equity is -24.4% for FY-2025, which is above its 5-year historical median of -29.4%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Shriram Asset Management Company Ltd?

Shriram Asset Management Company Ltd Cash conversion cycle is -8 days, above its 5-year historical median of -8 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.09	0.08
ROE	-24.4	-29.4
ROCE	-23.3	-4.4
Cash Conversion Cycle	-8 days	-8 days

Q.6 Gross Profit margin of Shriram Asset Management Company Ltd?

Shriram Asset Management Company Ltd Gross profit margin which is the profit after deduction of direct costs, is -233.9% for FY-2025, which is below its 5-year median of -71.9%, indicating decreasing margins.

Q.7 Operating Profit Margin of Shriram Asset Management Company Ltd?

Shriram Asset Management Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -234.75% for FY-2025, which is below its 5-year median of -43.67% indicating decreasing margins.

Q.8 Net Profit Margin of Shriram Asset Management Company Ltd?

Shriram Asset Management Company Ltd Net Profit Margin is -247.45% for FY-2025, is below with its 5-year median of -70.33%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-233.9	-71.9
Operating Profit Margin	-234.75	-43.67
Net Profit Margin	-247.45	-70.33

Q.9 Debt to Equity ratio of Shriram Asset Management Company Ltd?

Shriram Asset Management Company Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.34, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Shriram Asset Management Company Ltd?

Shriram Asset Management Company Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Shriram Asset Management Company Ltd?

Promoters hold 70.85% of the Shriram Asset Management Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Shriram Asset Management Company Ltd vs industry peers?

Shriram Asset Management Company Ltd revenue CAGR is 75.55%, compared to the industry median CAGR of 37.3%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-16	37.3
Gross Profit Growth	0	42.2
Operating Profit Growth	0	18.7
Net Profit Growth	0	49

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.09	0.38
ROE	-24.4	16.4
ROCE	-23.3	19.35
Cash Conversion Cycle (days)	-8.3	1

Valuation & price assessment

Q.1 Stock return of Shriram Asset Management Company Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 31.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	31.7%	26.7%	35.4%	-29.2%

Q.3 Valuation ratios of Shriram Asset Management Company Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	323.67	33.19
Price to Book	3.54	7.24	5.67
Price to Sales	49.72	43.59	22.04
EV to EBITDA	-32.54	-49.61	23.11

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