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Shriram City Union Finance Ltd Stock Analysis

Mid Cap
Evaluated by 1327 users | BSE: 532498 | NSE: SHRIRAMCIT |
Finance - NBFC
Shriram City Union Finance (SHRIRAM CITY) was established in 1986, and is part of the three decade-old Chennai-based Shriram Group. The company started as a deposit-accepting non-banking financial company (NBFC) and is India’s premier financial services company today, specializing in...

Analysis of Financial Track Record

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 City Union Finance Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Operating Income (Rs. Cr.)1,3212,0373,0713,1913,4823,8354,4325,1575,7825,885
Y-o-Y Gr. Rt.-54.3%50.8%3.9%9.1%10.1%15.6%16.4%12.1%1.8%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
48.5765.4181.1387.9184.6880.3684.32107.77149.85151.59
Y-o-Y Gr. Rt.-34.7%24%8.4%-3.7%-5.1%4.9%27.8%39.1%1.2%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
240.87313.52397.88488.3621.9684.03762.29841.88968.411,092.02
Y-o-Y Gr. Rt.-30.2%26.9%22.7%27.4%10%11.4%10.4%15%12.8%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%): Colour Rating Guide
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1: Not Good
Net Profit/Total Funds (%)2.973.073.13.193.252.732.452.633.23.02
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Shriram City Union Finance Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Operating Income18.1%11.1%9.9%1.8%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
13.5%12.4%21.6%1.2%
Book Value per Share
18.3%11.9%12.7%12.8%
Share Price 8.6% -8.4% -19.2% -21.6%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Asset Quality Ratio
To view Asset Quality Ratio Colour Rating Guide click here
Asset Quality Ratio: Colour Rating Guide
  • <0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1 : Not Good
Net NPA to Net Advances (%)0000000000
Capitalization Ratio
To view Capitalization Ratio Colour Rating Guide click here
Capitalization Ratio: Colour Rating Guide
  • >17% : Very Good
  • 15%-17% : Somewhat Good
  • <15% : Not Good
Capital Adequacy Ratio (%)0000000000
Margins
Net Profit Margin (%) 18.2216.8114.6416.3316.0313.8112.5513.7917.117
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15 : Very Good
  • 12-15 : Somewhat Good
  • <12 : Not Good
Return on Equity (%) 22.1724.1623.3820.4415.9612.3111.6613.4416.5614.72
Entity Percentage Holding
Promoters 34.56%
Institutions 62.93%
Non-Institutions 2.50%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Shriram City Union Finance Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Shriram City Union Finance Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Shriram City Union Finance Ltd's performance infers:

Shriram City Union Finance Ltd earnings have grown by 12.4%, whereas share price has depreciated -8.4% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Shriram City Union Finance Ltd share prices over the last 10 years. Here is what we found out:

Shriram City Union Finance Ltd share price has depreciated 4.9% annually over the past ten years.

Shriram City Union Finance (SHRIRAM CITY) was established in 1986, and is part of the three decade-old Chennai-based Shriram Group. The company started as a deposit-accepting non-banking financial company (NBFC) and is India’s premier financial services company today, specializing in

Shriram City Union Finance (SHRIRAM CITY) was established in 1986, and is part of the three decade-old Chennai-based Shriram Group. The company started as a deposit-accepting non-banking financial company (NBFC) and is India’s premier financial services company today, specializing in small-ticket retail finance.

The Chennai-based Shriram group has an enviable business heritage spanning over three decades. It has emerged as the largest player in its class on the Indian sub-continent. Specifically focusing on commercial vehicle loans, consumer durables financing and chit funds, the group's annual turnover crosses Rs. 18,000 crore. The Shriram group’s business presence also expands to Insurance Consultancy, Life Insurance, Re-insurance, Stock Broking, Information Technology, Pharmaceuticals, Property Development, Project Engineering, Packaging and manufacturing of Auto Components.

SHRIRAM CITY has a comprehensive range of offerings comprising financing for Consumer Durables, 2, 3 & 4-wheeler finance (both new & pre-owned, passenger & commercial), Personal Loans, Small Business Loans and Retail Gold Loans. This has made SHRIRAM CITY a dominant player in the field and the only NBFC offering a wide product range under one roof.

The company has over 633 Business Outlets across the country, SHRIRAM CITY enjoys a high credit rating, as well as listing on the BSE, NSE & Madras Stock Exchanges.

The company lends around Rs 300 crore a month in small-tickets of between Rs 8000 to Rs 1 lakh each, with tenors ranging from 12 to 36 months.

SHRIRAM CITY has serviced over 15 Lac customers till date and adds on an average 85,000 new customers every month.

Services offered by the company

Consumer Durable Finance- SHRIRAM CITY offers loans for a wide range of white goods and lifestyle products, viz. air-conditioners, computer systems, high-end TVs, audio & video systems, washing machines, refrigerators, microwave ovens, furniture, gym products. The company has tie-ups with major manufacturers/dealers and retail outlets at showrooms to enable easy access to products under finance.

Auto Finance- SHRIRAM CITY currently offers a variety of loans against new and pre-owned two wheelers, 3-wheelers, 4 wheelers (both passenger & commercial).

Personal Finance- SHRIRAM CITY offers quick finance at attractive interest rates with service at the customer's doorstep. Shriram City offers hassle-free, non-end use specific loans with minimum documentation.

Retail Gold Loans- Retail Gold loans are the latest addition to SHRIRAM CITY's product line. SHRIRAM CITY's Retail Gold loans offer on-the-spot finance at attractive rates of interest.

Small Business Loan- SHRIRAM CITY offers small business loans to self-employed professionals, wholesale/retail dealers, general merchants, builders, manufacturers, hotel/ catering services, tour operators, etc.

Achievements:

  • SHRIRAM CITY ranked as 3rd most investor friendly Companies                   24 August2008
  • SHRIRAM CITY ranked as the ‘Fastest Growing Small Companies’               15 June, 2008
  • SHRIRAM CITY raises Rs 400 crore thru Preferential Issue                           16 May, 2008
  • SHRIRAM CITYUnion Finance becomes a ‘Preferred Financier’                    11 March, 2008
  • Maruti Suzuki and SHRIRAM CITY tie up for rural car finance                        11 March, 2008
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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