Shriram Finance Ltd - Stock Valuation and Financial Performance

BSE: 511218 | NSE: SHRIRAMFIN | Finance - NBFC | Large Cap

Shriram Finance Share Price

2,484.85 -40.70 -1.61%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Shriram Finance

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Shriram Finance stock performance -

mw4me loader
P/E Ratio (CD):
14.06
Market Cap:
93,378.9 Cr.
52-wk low:
1,291.8
52-wk high:
2,605

Is Shriram Finance Ltd an attractive stock to invest in?

1. Is Shriram Finance Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Shriram Finance Ltd is a average quality company.

2. Is Shriram Finance Ltd undervalued or overvalued?

The key valuation ratios of Shriram Finance Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Shriram Finance Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Shriram Finance Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Shriram Finance:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Shriram Finance Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Operating Income (₹ Cr.)8,4769,17710,35910,90313,46715,52916,55517,42019,25530,47734,028
YoY Gr. Rt. %-8.3%12.9%5.3%23.5%15.3%6.6%5.2%10.5%58.3%-
Adj EPS (₹ ) 58.344.250.854.4109.5110.6107.998.7100.6160.5176.8
YoY Gr. Rt. %--24.3%15.1%6.9%101.4%1.1%-2.5%-8.5%1.9%59.6%-
BVPS (₹ )364.3396.9436.5486.5587.9685.5779.1858.2964.61,156.81,282.3
YoY Gr. Rt. %-9%10%11.5%20.9%16.6%13.7%10.2%12.4%19.9%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)2.51.71.71.72.82.42.221.93.30

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest Income15.3%17.7%22.6%58.3%
Adj EPS11.9%8%14.2%59.6%
BVPS13.7%14.5%14.1%19.9%
Share Price 12.8% 15.8% 21.6% 91.6%

Key Financial Ratios

RATIOS \ YEARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)0.80.81.92.62.72.83.14.200-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 20.523.417.616.916.920.32222.500-
Margins
Net Profit Margin (%)1611.211.411.618.916.515.114.314.119.719.5
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)17.211.612.211.820.417.314.712.511.317.313.8

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 14.50%

Total Income has increased 22.56 CAGR in last 3 years

Net Profit has increased 14.17 CAGR in last 3 years

Total income growth is poor in last 4 quarters

Latest Financials - Shriram Finance Ltd.

Standalone Consolidated
TTM EPS (₹) 174.4 176.8
TTM Sales (₹ Cr.) 32,827 34,028
BVPS (₹.) 1,273.6 1,282.3
Reserves (₹ Cr.) 47,486 47,812
P/BV 1.95 1.94
PE 14.25 14.06
From the Market
52 Week Low / High (₹) 1291.75 / 2605.00
All Time Low / High (₹) 2.39 / 2605.00
Market Cap (₹ Cr.) 93,379
Equity (₹ Cr.) 375.8
Face Value (₹) 10
Industry PE 32.5

Management X-Ray of Shriram Finance:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Shriram Finance

Adj EPS (Rs.)

Total Income (Cr.)

ROE (%)

BVPS (Rs.)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Income8,4809,18010,36210,90413,52915,63216,57617,44619,28030,509
Interest Income8,4769,17710,35910,90313,46715,52916,55517,42019,25530,477
Other Income 43326210321262533
Expenditure 6,5107,5308,5738,9669,75711,85413,13814,16815,73122,296
Interest Expense 4,2334,7065,0885,2196,4167,5668,3159,0919,77712,996
Operating Expenses 9771,1101,2461,2581,5241,7221,9151,8461,9544,938
Provisions 1,3001,7142,2392,4901,8182,5662,9083,2324,0004,362
Exceptional Items 000012300000
Profit Before Tax 1,9701,6501,7891,9383,8963,7783,4393,2783,5498,214
Taxes 6136216066721,3491,2149377918412,202
Profit After Tax 1,3581,0281,1841,2662,5462,5642,5022,4872,7086,011
Adjusted EPS (₹)58.344.250.854.4109.5110.6107.998.7100.6160.5
Dividend Payout Ratio (%)12%22%19%18%10%11%5%18%20%22%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Equity Capital8,5109,26610,17511,33213,69015,96318,14221,71726,09443,513
Share Capital 227227227227227227227253271374
Reserves 8,2839,0399,94911,10513,46315,73617,91521,46425,82443,138
Minority Interest000000000287
Long Term Borrowings28,45737,93336,32840,99679,39186,01895,3981,10,3621,19,0311,69,705
Current Liabilities 19,26219,44426,50327,73611,0626,2754,6522,3642,5448,321
Trade Payables5531,2281,537172220136145153169315
Short term borrowings3,3942,9533,3304,9545,1994,9482,056717484459
Other Liabilities-3,947-4,181-4,867-5,126-5,419-5,085-2,201-870-653-774
Total Liabilities 56,22966,64273,00680,0651,04,1441,08,2561,18,1921,34,4431,47,6692,21,825

Assets

Non Current Asset 26,87136,02246,75451,34895,9491,04,1611,08,9491,17,5771,30,0161,98,533
Loan Asset 23,60732,32342,85047,13190,74696,7511,02,2321,08,3031,16,6651,78,685
Other Non Current Asset 3,2643,6993,9044,2185,2037,4106,7179,27413,35119,848
Current Asset 29,33130,59826,24228,7138,1964,0959,24316,86617,65323,292
Current Investment2,0352,21311752000000
Other Current Asset27,29628,38526,12628,6618,1964,0959,24316,86617,65323,292
Total Assets 56,22966,64273,00680,0651,04,1441,08,2561,18,1921,34,4431,47,6692,21,825

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -4,055-9,611-5,507-2,677-13,142-5,535-2,464-4,239-8,859-17,625
Cash Flow From Investing Activity -112-45-36-191-76-55-25-34-193
Cash Flow From Financing Activity 5,0107,8362,8223,01713,0145,5504,57912,2268,50511,820
Net Cash Flow 843-1,819-2,721338-37-622,0607,962-388-5,999
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Operational & Financial Ratios

EPS (₹)6045525611211411199101161
DPS (₹)710101011125182035
BVPS (₹)3744074484996037048008589651157

Performance Ratios

ROA (%)2.51.71.71.72.82.42.22.01.93.3
ROE (%)17.211.612.211.820.417.314.712.511.317.3
ROCE (%)14.112.311.911.512.911.410.910.39.912.2

Valuation Parameters

Price/Book(x)2.02.72.12.22.41.80.81.71.21.1

Shriram Finance Ltd Stock News

Shriram Finance Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Shriram Finance on 12-Apr-2024 16:59 is ₹2,484.9.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 16:59 the market cap of Shriram Finance stood at ₹93,378.9.
The latest P/E ratio of Shriram Finance as of 12-Apr-2024 16:59 is 14.25.
The latest P/B ratio of Shriram Finance as of 12-Apr-2024 16:59 is 1.95.
The 52-week high of Shriram Finance is ₹2,605 and the 52-week low is ₹1,291.8.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Shriram Finance is ₹32,827 ( Cr.) .

About Shriram Finance Ltd

Shriram Transport Finance Company (STFC) is the flagship company of the Shriram group which has significant presence in in financial services viz., commercial vehicle financing business, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products such as life and general insurance products and units of mutual funds. The Company was incorporated in the year 1979 and is registered as a Deposit taking NBFC with Reserve Bank of India under section 451A of the Reserve Bank of India Act, 1934. STFC decided to finance the much neglected Small Truck Owner. Shriram understood the power of 'Aspiration' much before marketing based on 'Aspiration' became fashionable. Shriram started lending to the Small Truck Owner to buy new trucks. But it found a mismatch between the Aspiration and Ability.

Business area of the company

The company is one of the largest asset financing NBFC in the country and holistic finance provider for the commercial vehicle industry and seeks to partner small truck owners for every possible need related to their assets.

Products

  • Commercial vehicle loans
  • Business loans
  • Deposits
  • Working Capital loans
  • Life insurance
  • Emergency credit line guarantee scheme (ECLGS)

Awards

  • 2012: Shriram Transport Finance Company wins CNBC TV18 Best Bank and Financial Institution Awards
  • 2012: Shriram Transport Finance Company Ltd wins the ICAI Awards for Financial Reporting'
  • 2017- Shriram Transport Finance Company selected Asia's most Promising Brand 2017

Milestones

  • 1979: STFC was established.
  • 1984: Initial public offering.
  • 1990: Investment from Telco & Ashok Leyland.
  • 1999: Tied up with Citi Group for CV financing under portfolio management services.
  • 1999: the 1st securitization transaction by STFC.
  • 2002-04: Preferential allotment of Citi Finance (India).
  • 2002-04: Preferential allotment to Axis Bank and Reliance Capital.
  • 2005-06: Investment from ChrysCapital.
  • 2005-06: Investment from TPG.
  • 2005-06: Merger of Shriram Investment Ltd. and Shriram Overseas Finance Ltd. with STFC; PAT crosses Rs 1,000 million.
  • 2009: Successfully placed Rs 10 billion of NCD with domestic investors.
  • 2009: Purchased hypothecation loan outstanding of commercial vehicle and construction of GE Capital Services India and GE Capital Finance Services (GE) aggregating to around Rs 11 billion.
  • 2010: Securitised Rs 87.57 billion during FY 2010.
  • 2010: Successfully raise Rs 5.84 billion through QIP with domestic & international investors. Initiated financing of construction equipment.
  • 2011: Introduced Shriram Automalls - a dedicated platform for trading of pre-owned trucks at a fair value.
  • 2013: AUM crosses Rs 500 billion.
  • 2015: India Ratings & Research Long-Term rating upgraded to ‘AA+’.
  • 2015: CRISIL upgraded long-term debt rating to ‘AA+/FAAA/Stable’.
  • 2017: Successfully raised Rs 13.5 billion through issuance of ‘Masala Bonds’ Senior Secured Rupee Denominated Bonds listed on Singapore Stock Exchange.
  • 2018: AUM crosses Rs 1000 billion
  • 2019: Raised $500 million on through offshore bonds.
  • 2019: Within months, global investors reposed faith on the company showing the company’s robust credit fundamentals.
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