1. Is Shriram Transport Finance Company Ltd a good quality company?
Past 10 year's financial track record analysis by Moneyworks4me indicates that Shriram Transport Finance Company Ltd is a good quality company.
2. Is Shriram Transport Finance Company Ltd undervalued or overvalued?
The key valuation ratios of Shriram Transport Finance Company Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.
3. Is Shriram Transport Finance Company Ltd a good buy now?
The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Shriram Transport Finance Company Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
|Operating Income (₹ Cr.)||6,179||7,014||8,476||9,177||10,359||10,903||13,467||15,529||16,561||17,422||18,586|
|YoY Gr. Rt. %||-||13.5%||20.8%||8.3%||12.9%||5.3%||23.5%||15.3%||6.7%||5.2%||-|
|Adj EPS (₹ )||56.4||62.9||58.3||44.2||50.8||54.4||109.5||110.6||107.9||98.7||88.2|
|YoY Gr. Rt. %||-||11.5%||-7.2%||-24.3%||15.1%||6.9%||101.4%||1.1%||-2.5%||-8.5%||-|
|BVPS (₹ )||258.6||314.1||364.3||396.9||436.5||486.5||587.9||685.5||779.1||858.2||950.1|
|YoY Gr. Rt. %||-||21.5%||16%||9%||10%||11.5%||20.9%||16.6%||13.7%||10.2%||-|
|To view Net Profit/Total Funds (%) Colour Rating Guide click here ⓘ|
|Net Profit/Total Funds (%)||3.6||3.3||2.5||1.7||1.7||1.7||2.8||2.4||2.2||2||0|
CAGR ⓘCAGR Colour Code Guide ⓘ
|9 Years||5 Years||3 Years||1 Years|
|Net Interest Income||12.2%||11%||9%||5.2%|
Key Financial Ratios
|RATIOS \ YEARS||Mar'12||Mar'13||Mar'14||Mar'15||Mar'16||Mar'17||Mar'18||Mar'19||Mar'20||Mar'21||TTM|
|Asset Quality Ratio||To view Asset Quality Ratio Colour Rating Guide click here ⓘ|
|Net NPA to Net Advances (%)||0.4||0.8||0.8||0.8||1.9||2.6||2.7||2.8||3.1||4.2||-|
|Capitalization Ratio||To view Capitalization Ratio Colour Rating Guide click here ⓘ|
|Capital Adequacy Ratio (%)||22.3||20.7||20.5||23.4||17.6||16.9||16.9||20.3||22||22.5||-|
|Net Profit Margin (%)||21.2||20.9||16||11.2||11.4||11.6||18.9||16.5||15.1||14.3||12.8|
|Performance Ratios||To view Performance Ratios Colour Rating Guide click here ⓘ|
|Return on Equity (%)||24.1||21.9||17.2||11.6||12.2||11.8||20.4||17.3||14.7||12.5||9.3|
Total Income has increased 8.96 CAGR in last 3 years
Total income growth is good in last 4 quarters
Return on Equity has declined versus last 3 years average to 9.80%
Net Profit has declined -3.38 CAGR in last 3 years
Net NPA to Net Advances has increased in last 3 years
|TTM EPS (₹)||87.9||88.2|
|TTM Sales (₹ Cr.)||18,586||18,586|
|BVPS (₹.) ⓘ||944.5||950.1|
|Reserves (₹ Cr.) ⓘ||25,280||25,431|
|From the Market|
|52 Week Low / High (₹)||1097.80 / 1696.15|
|All Time Low / High (₹)||2.39 / 1696.15|
|Market Cap (₹ Cr.)||31,583|
|Equity (₹ Cr.)||270.5|
|Face Value (₹)||10|
|Industry PE ⓘ||38.7|
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.