Sakthi Finance Limited, a non-banking financial company, primarily provides asset financing services in India.
Fair value second-rate dividend payer.
Share Price & News
How has Sakthi Finance's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 511066's share price has been volatile over the past 3 months.
7 Day Return
IN Consumer Finance
1 Year Return
IN Consumer Finance
Return vs Industry: 511066 underperformed the Indian Consumer Finance industry which returned -26.4% over the past year.
Return vs Market: 511066 underperformed the Indian Market which returned -29.2% over the past year.
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
Is Sakthi Finance undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 511066 (₹12.52) is trading above our estimate of fair value (₹1.53)
Significantly Below Fair Value: 511066 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 511066 is good value based on its PE Ratio (6.4x) compared to the Consumer Finance industry average (10.4x).
PE vs Market: 511066 is good value based on its PE Ratio (6.4x) compared to the Indian market (9.2x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 511066's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 511066 is good value based on its PB Ratio (0.4x) compared to the IN Consumer Finance industry average (0.6x).
How is Sakthi Finance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Diversified Financials industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sakthi Finance has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
- Examine whether Sakthi Finance is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Sakthi Finance competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Diversified Financials industry.
How has Sakthi Finance performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 511066 has high quality earnings.
Growing Profit Margin: 511066's current net profit margins (13.4%) are lower than last year (14.8%).
Past Earnings Growth Analysis
Earnings Trend: 511066's earnings have declined by -7.8% per year over the past 5 years.
Accelerating Growth: 511066's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 511066 had negative earnings growth (-2.8%) over the past year, making it difficult to compare to the Consumer Finance industry average (15.6%).
Return on Equity
High ROE: 511066's Return on Equity (7.1%) is considered low.
How is Sakthi Finance's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: 511066 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 511066's debt is covered by short term assets (assets are 1.4x debt).
Financial Institutions Analysis
Asset Level: 511066's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if 511066 has a sufficient allowance for bad loans.
Low Risk Liabilities: 511066 reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if 511066 has an acceptable proportion of non-loan assets held.
Low Risk Deposits: 511066 has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if 511066 has an appropriate level of bad loans.
What is Sakthi Finance's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 511066's dividend (7.99%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).
High Dividend: 511066's dividend (7.99%) is in the top 25% of dividend payers in the Indian market (4.18%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, 511066 has been paying a dividend for less than 10 years.
Growing Dividend: 511066 has only been paying a dividend for 9 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (50.8%), 511066's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Mahalingam Balasubramaniam (61yo)
Mr. Mahalingam 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 ...
CEO Compensation Analysis
Compensation vs Market: Mahalingam's total compensation ($USD152.08K) is above average for companies of similar size in the Indian market ($USD48.50K).
Compensation vs Earnings: Mahalingam's compensation has been consistent with company performance over the past year.
|Vice Chairman & MD||no data||₹11.46m||0.38% ₹2.4m|
|Director of Finance & Operations and Additional Non Independent Executive Director||0.83yr||₹3.22m||no data|
|Independent Non-Executive Director||15.33yrs||₹200.00k||no data|
|Non-Executive Chairman||12.42yrs||₹80.00k||0.19% ₹1.2m|
|Non-Executive Director||25.92yrs||₹140.00k||0.50% ₹3.1m|
|Independent Non-Executive Director||19yrs||₹380.00k||0.00060% ₹3.8k|
|Non-Executive Independent Director||5yrs||₹160.00k||no data|
|Non-Executive Independent Director||4.83yrs||₹300.00k||no data|
Experienced Board: 511066's board of directors are seasoned and experienced ( 12.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Sakthi Finance Limited's company bio, employee growth, exchange listings and data sources
- Name: Sakthi Finance Limited
- Ticker: 511066
- Exchange: BSE
- Founded: 1955
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: ₹626.000m
- Shares outstanding: 50.00m
- Website: https://www.sakthifinance.com
Number of Employees
- Sakthi Finance Limited
- 62, Dr. Nanjappa Road
- Tamil Nadu
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|511066||BSE (Mumbai Stock Exchange)||Yes||Equity Shares||IN||INR||Apr 2002|
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, infrastructure and construction equipment, machineries, etc. The company also offers non-convertible debentures, fixed and cumulative income deposits, and subordinated bonds. It operates through a network of approximately 50 branches located in Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, and Telangana, as well as in Maharashtra, Puducherry, and New Delhi. Sakthi Finance Limited was founded in 1955 and is headquartered in Coimbatore, India.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/28 12:53|
|End of Day Share Price||2020/03/27 00:00|
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.