Shriram Transport Finance Company Ltd Stock Analysis

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

BSE Share Price 23-Sep-2022 18:01
1202.05 -55.80 (-4.44%)

DeciZen - Make an Informed Decision on Shriram Trans. Fin

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Semi Strong

Shriram Trans. Fin Price Chart

P/E Ratio (CD) :
9.30
Market Cap :
32,517.8 Cr.
52-wk low :
1,002.5
52-wk high :
1,696.2
Bole Toh?

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 average 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 Semi Strong which suggest that the price of Shriram Transport Finance Company 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 Trans. Fin:

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 Transport Finance Company Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Operating Income (₹ Cr.)7,0148,4769,17710,35910,90313,46715,52916,56117,42219,27019,629
YoY Gr. Rt. %-20.8%8.3%12.9%5.3%23.5%15.3%6.7%5.2%10.6%-
Adj EPS (₹ ) 62.958.344.250.854.4109.5110.6107.998.7100.6130
YoY Gr. Rt. %--7.2%-24.3%15.1%6.9%101.4%1.1%-2.5%-8.5%1.9%-
BVPS (₹ )314.1364.3396.9436.5486.5587.9685.5779.1858.2964.61,000.3
YoY Gr. Rt. %-16%9%10%11.5%20.9%16.6%13.7%10.2%12.4%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)3.32.51.71.71.72.82.42.221.90

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Net Interest Income11.9%12.1%7.5%10.6%
Adj EPS5.4%13.1%-3.1%1.9%
BVPS13.3%14.7%12.1%12.4%
Share Price 7.1% 4.1% 3.8% -11.3%

Key Financial Ratios

RATIOS \ YEARSMar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)0.80.80.81.92.62.72.83.14.20-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 20.720.523.417.616.916.920.32222.50-
Margins
Net Profit Margin (%)20.91611.211.411.618.916.515.114.314.117.9
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)21.917.211.612.211.820.417.314.712.511.313

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 13.20%

Total Income has increased 7.46 CAGR in last 3 years

Total income growth is good in last 4 quarters

Net Profit has declined -3.12 CAGR in last 3 years

Latest Financials - Shriram Transport Finance Company Ltd.

Standalone Consolidated
TTM EPS (₹) 129.5 130
TTM Sales (₹ Cr.) 19,678 19,629
BVPS (₹.) 994.3 1,000.3
Reserves (₹ Cr.) 26,627 26,789
P/BV 1.21 1.21
PE 9.28 9.30
From the Market
52 Week Low / High (₹) 1002.50 / 1696.15
All Time Low / High (₹) 2.39 / 1696.15
Market Cap (₹ Cr.) 32,518
Equity (₹ Cr.) 270.5
Face Value (₹) 10
Industry PE 30.7

Management X-Ray of Shriram Trans. Fin :

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 Trans. Fin

Adj EPS (Rs.)
Total Income (Cr.)
ROE (%)
BVPS (Rs.)

News

About Shriram Transport Finance Company 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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