BSE:511218

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Executive Summary

Shriram Transport Finance Company Limited, a non-banking finance company, primarily provides commercial vehicle financing services in India.


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 511218 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

511218

1.2%

IN Consumer Finance

1.9%

IN Market


1 Year Return

-34.1%

511218

-2.9%

IN Consumer Finance

2.6%

IN Market

Return vs Industry: 511218 underperformed the Indian Consumer Finance industry which returned -2.8% over the past year.

Return vs Market: 511218 underperformed the Indian Market which returned 3.2% over the past year.


Shareholder returns

511218IndustryMarket
7 Day-3.3%1.2%1.9%
30 Day-8.6%0.3%3.4%
90 Day-11.2%40.8%21.4%
1 Year-32.1%-34.1%-0.3%-2.9%4.5%2.6%
3 Year-25.8%-29.4%44.3%35.9%4.0%-0.9%
5 Year-14.3%-20.0%185.4%161.1%31.9%22.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Shriram Transport Finance undervalued compared to its fair value and its price relative to the market?

5.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 511218 (₹660.65) is trading above our estimate of fair value (₹466.77)

Significantly Below Fair Value: 511218 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 511218 is good value based on its PE Ratio (6x) compared to the IN Consumer Finance industry average (11.1x).

PE vs Market: 511218 is good value based on its PE Ratio (6x) compared to the Indian market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 511218's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 511218 is overvalued based on its PB Ratio (0.8x) compared to the IN Consumer Finance industry average (0.5x).


Next Steps

Future Growth

How is Shriram Transport Finance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

31.4%

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 Shriram Transport 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.


Next Steps

Past Performance

How has Shriram Transport Finance performed over the past 5 years?

18.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 511218 has high quality earnings.

Growing Profit Margin: 511218's current net profit margins (30.5%) are lower than last year (32.1%).


Past Earnings Growth Analysis

Earnings Trend: 511218's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: 511218's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 511218 had negative earnings growth (-2.5%) over the past year, making it difficult to compare to the Consumer Finance industry average (-2.7%).


Return on Equity

High ROE: 511218's Return on Equity (13.8%) is considered low.


Next Steps

Financial Health

How is Shriram Transport Finance's financial position?


Financial Position Analysis

Short Term Liabilities: 511218's short term assets (₹1,107.8B) exceed its short term liabilities (₹372.9B).

Long Term Liabilities: 511218's short term assets (₹1,107.8B) exceed its long term liabilities (₹588.4B).


Debt to Equity History and Analysis

Debt Level: 511218's debt to equity ratio (454.4%) is considered high.

Reducing Debt: 511218's debt to equity ratio has reduced from 512.7% to 454.4% over the past 5 years.

Debt Coverage: 511218's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 511218's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Shriram Transport Finance current dividend yield, its reliability and sustainability?

0.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 511218's dividend (0.76%) is higher than the bottom 25% of dividend payers in the Indian market (0.65%).

High Dividend: 511218's dividend (0.76%) is low compared to the top 25% of dividend payers in the Indian market (2.65%).


Stability and Growth of Payments

Stable Dividend: 511218's dividend payments have been volatile in the past 10 years.

Growing Dividend: 511218's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (4.5%), 511218's dividend payments are thoroughly 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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.1yrs

Average management tenure


CEO

Umesh Revankar (56 yo)

3.83yrs

Tenure

₹10,986,667

Compensation

Mr. Umesh Govind Revankar has been Chief Executive Officer and Managing Director of Shriram Transport Finance Company Limited since October 25, 2016. Mr. Revankar served as Managing Director and Chief Exec ...


CEO Compensation Analysis

Compensation vs Market: Umesh's total compensation ($USD146.92K) is below average for companies of similar size in the Indian market ($USD625.72K).

Compensation vs Earnings: Umesh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Umesh Revankar
MD, CEO & Director3.83yrs₹10.99mno data
Parag Sharma
CFO & Executive Directorno data₹6.30mno data
Vivek Achwal
Compliance Officer & Company Secretary8.92yrs₹4.95mno data
S. Sunder
BR Head and Executive Director of Accounts & Administrationno datano datano data
Sanjay Mundra
Senior Vice Presidentno datano datano data
Pratap Paode
Chief Executive Officer of Shriram Equipment Finance Company Limited9.33yrsno datano data
Sameer Malhotra
Chief Executive Officer of Shriram Automall India Limited9.33yrsno datano data
Hardeep Singh
Chief Executive Officer of West & Northno datano datano data

9.1yrs

Average Tenure

56yo

Average Age

Experienced Management: 511218's management team is seasoned and experienced (9.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Umesh Revankar
MD, CEO & Director3.83yrs₹10.99mno data
Puneet Bhatia
Non-Executive & Non-Independent Director13.83yrsno datano data
Srinivasan Sridhar
Non-Executive Independent Director5.83yrs₹1.32mno data
Subramanian Lakshminarayanan
Independent Non Executive Chairman5.58yrs₹1.17mno data
Kishori Udeshi
Non Executive Independent Director7.83yrs₹1.42mno data
Pradeep Panja
Non Executive-Independent Director1.83yrs₹1.42mno data
Devaki Ravi
Non-Executive Non-Independent Director5.17yrsno datano data
Ignatius Viljoen
Non-Independent Non-Executive Director1.25yrsno datano data

5.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 511218's board of directors are considered experienced (5.4 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.5%.


Top Shareholders

Company Information

Shriram Transport Finance Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shriram Transport Finance Company Limited
  • Ticker: 511218
  • Exchange: BSE
  • Founded: 1979
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹162.554b
  • Shares outstanding: 253.06m
  • Website: https://www.stfc.in

Number of Employees


Location

  • Shriram Transport Finance Company Limited
  • Wockhardt Towers
  • Level-3, West Wing, C-2
  • Mumbai
  • Maharashtra
  • 400051
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
511218BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1995
SRTRANSFINNSEI (National Stock Exchange of India)YesEquity SharesININRSep 1995

Biography

Shriram Transport Finance Company Limited, a non-banking finance company, primarily provides commercial vehicle financing services in India. The company offers commercial vehicle loans for commercial goods ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 12:50
End of Day Share Price2020/08/06 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.