BSE:511066

Stock Analysis Report

Executive Summary

Sakthi Finance Limited, a non-banking financial company, primarily provides asset financing services in India.

Snowflake

Fundamentals

Fair value second-rate dividend payer.

Risks

  • Sakthi Finance has significant price volatility in the past 3 months.
  • Sakthi Finance is not covered by any analysts.

Share Price & News

How has Sakthi Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

BSE:511066

-3.6%

IN Consumer Finance

-2.1%

IN Market


1 Year Return

-44.6%

BSE:511066

-3.2%

IN Consumer Finance

-14.7%

IN Market

511066 underperformed the Consumer Finance industry which returned -3.1% over the past year.

511066 underperformed the Market in India which returned -14.6% over the past year.


Share holder returns

511066IndustryMarket
7 Day0.8%-3.6%-2.1%
30 Day3.9%1.9%-3.9%
90 Day-23.0%-10.2%-10.1%
1 Year-42.4%-44.6%-2.5%-3.2%-12.9%-14.7%
3 Year-66.4%-69.2%59.3%56.0%17.7%11.5%
5 Year-14.7%-29.0%233.9%218.2%35.4%22.5%

Price Volatility Vs. Market

How volatile is Sakthi Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sakthi Finance undervalued based on future cash flows and its price relative to the stock market?

6.87x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Sakthi Finance's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Sakthi Finance's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Sakthi Finance is good value based on earnings compared to the IN Consumer Finance industry average.

Sakthi Finance is good value based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Sakthi Finance, we can't assess if its growth is good value.


Price Based on Value of Assets

Sakthi Finance is good value based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

How is Sakthi Finance expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

0.03%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Sakthi Finance is high growth as no revenue estimate data is available.

Sakthi Finance's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Sakthi Finance's revenue growth to the India market average as no estimate data is available.

Sakthi Finance's earnings growth is positive but not above the India market average.

Sakthi Finance's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Sakthi Finance will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Sakthi Finance performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sakthi Finance's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Sakthi Finance's 1-year earnings growth exceeds its 5-year average (12.9% vs -0.7%)

Sakthi Finance's earnings growth has not exceeded the IN Consumer Finance industry average in the past year (12.9% vs 15%).


Return on Equity

Sakthi Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sakthi Finance used its assets less efficiently than the IN Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Sakthi Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Sakthi Finance's financial position?


Financial Position Analysis

Sakthi Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sakthi Finance's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Sakthi Finance's level of debt (518.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (499.5% vs 518.4% today).

Debt is not well covered by operating cash flow (10%, less than 20% of total debt).

Unable to confirm if the interest payments on Sakthi Finance's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

What is Sakthi Finance's current dividend yield, its reliability and sustainability?

7.06%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Sakthi Finance before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Sakthi Finance's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.65%).

Sakthi Finance's dividend is above the markets top 25% of dividend payers in India (2.64%).

Whilst dividend payments have been stable, Sakthi Finance has been paying a dividend for less than 10 years.

Sakthi Finance has only been paying a dividend for 8 years, and since then there has been no growth.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Sakthi Finance's salary, the management and board of directors tenure and is there insider trading?

11.8yrs

Average board tenure


CEO

M. Balasubramaniam (61yo)

0.0yrs

Tenure

₹11,688,000

Compensation

Mr. M. Balasubramaniam, M.Com., MBA, has been Vice Chairman of the Board and Managing Director of Sakthi Finance Limited, since October 24, 2007. Mr. Balasubramaniam had been a Managing Director at Sakthi  ...


CEO Compensation Analysis

M.'s remuneration is higher than average for companies of similar size in India.

M.'s compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Board Age and Tenure

11.8yrs

Average Tenure

62yo

Average Age

The average tenure for the Sakthi Finance board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • M. Balasubramaniam (61yo)

    Vice Chairman & MD

    • Tenure: 0.0yrs
    • Compensation: ₹11.69m
  • K. Natesan (60yo)

    President

    • Tenure: 0.0yrs
  • K. Guruprasad (68yo)

    Senior Vice President

    • Tenure: 0.0yrs
  • S. Veluswamy (60yo)

    Director of Finance & Operations and Additional Non Independent Executive Director

    • Tenure: 0.3yrs
    • Compensation: ₹2.58m
  • S. Venkatesh

    Compliance Officer & Company Secretary

    • Tenure: 0.0yrs
    • Compensation: ₹1.61m
  • G. Sundar (62yo)

    Vice President of Credit

    • Tenure: 0.0yrs
  • S. Senthilkumar

    Deputy General Manager of Finance & Accounts

    • Tenure: 0.0yrs
  • B. Shruthi

    Executive Officer

    • Tenure: 0.0yrs
  • S Krishnaswamy

    Chief Technology Officer

    • Tenure: 0.0yrs

Board Members

  • P. Gopalakrishnan (84yo)

    Independent Non-Executive Director

    • Tenure: 14.8yrs
    • Compensation: ₹160.00k
  • M. Balasubramaniam (61yo)

    Vice Chairman & MD

    • Tenure: 0.0yrs
    • Compensation: ₹11.69m
  • M. Manickam (63yo)

    Non-Executive Chairman

    • Tenure: 11.8yrs
    • Compensation: ₹140.00k
  • M. Srinivaasan (53yo)

    Non-Executive Director

    • Tenure: 25.3yrs
    • Compensation: ₹80.00k
  • A. Selvakumar (64yo)

    Independent Non-Executive Director

    • Tenure: 18.4yrs
    • Compensation: ₹300.00k
  • S. Veluswamy (60yo)

    Director of Finance & Operations and Additional Non Independent Executive Director

    • Tenure: 0.3yrs
    • Compensation: ₹2.58m
  • Priya Bhansali

    Non-Executive Independent Director

    • Tenure: 4.4yrs
    • Compensation: ₹160.00k
  • K. Ramakrishnan

    Non-Executive Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹180.00k

Company Information

Sakthi Finance Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sakthi Finance Limited
  • Ticker: 511066
  • Exchange: BSE
  • Founded: 1955
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹708.000m
  • Shares outstanding: 50.00m
  • Website: https://www.sakthifinance.com

Number of Employees


Location

  • Sakthi Finance Limited
  • 62, Dr. Nanjappa Road
  • Coimbatore
  • Tamil Nadu
  • 641018
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
511066BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2002

Biography

Sakthi Finance Limited, a non-banking financial company, primarily provides asset financing services in India. It is involved in the provision of hire purchase financing of commercial vehicles, infrastruct ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 12:42
End of Day Share Price2019/08/23 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.