BSE:511218

Stock Analysis Report

Executive Summary

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

Rewards

PE ratio (9.5x) is below the Indian market (13.3x)

Earnings grew by 18.2% over the past year

Pays a reliable dividend of 0.94%

Risk Analysis

No risks detected for 511218 from our risk checks.


Snowflake Analysis

Proven track record average dividend payer.


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

4.6%

511218

0.7%

IN Consumer Finance

-1.5%

IN Market


1 Year Return

27.2%

511218

56.6%

IN Consumer Finance

10.7%

IN Market

Return vs Industry: 511218 underperformed the Indian Consumer Finance industry which returned 58.1% over the past year.

Return vs Market: 511218 exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

511218IndustryMarket
7 Day4.6%0.7%-1.5%
30 Day17.2%8.8%-2.7%
90 Day13.2%12.6%1.3%
1 Year28.6%27.2%57.6%56.6%12.7%10.7%
3 Year38.4%34.4%136.3%131.1%22.0%15.1%
5 Year14.9%9.4%264.9%248.8%34.5%22.0%

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?

9.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 511218 (₹1274.75) is trading above our estimate of fair value (₹753)

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 (9.5x) compared to the Consumer Finance industry average (15x).

PE vs Market: 511218 is good value based on its PE Ratio (9.5x) compared to the Indian market (13.3x).


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 (1.7x) compared to the IN Consumer Finance industry average (0.7x).


Next Steps

Future Growth

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

7.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 511218's forecast earnings growth is above the savings rate (6.5%).

Earnings vs Market: Insufficient data to determine if 511218's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 511218's revenue (7.9% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: 511218's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 511218's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

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

19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 511218 has high quality earnings.

Growing Profit Margin: 511218's current net profit margins (36.8%) are higher than last year (33%).


Past Earnings Growth Analysis

Earnings Trend: 511218's earnings have grown by 19.4% per year over the past 5 years.

Accelerating Growth: 511218's earnings growth over the past year (18.2%) is below its 5-year average (19.4% per year).

Earnings vs Industry: 511218 earnings growth over the past year (18.2%) exceeded the Consumer Finance industry 10.9%.


Return on Equity

High ROE: 511218's Return on Equity (17.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Shriram Transport Finance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 511218 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 511218's debt is covered by short term assets (assets are 1.3x debt).


Financial Institutions Analysis

Asset Level: 511218's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 511218 has a sufficient allowance for bad loans.

Low Risk Liabilities: 511218 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 511218 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 511218 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 511218 has an appropriate level of bad loans.


Next Steps

Dividend

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

0.94%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%0.6%markettop25%2.6%industryaverage0.5%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: 511218's dividend (0.94%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 511218's dividend (0.94%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

Stable Dividend: 511218's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9%), 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?

8.6yrs

Average management tenure


CEO

Umesh Revankar (55yo)

3.3yrs

Tenure

₹6,697,212

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 ($USD93.86K) is below average for companies of similar size in the Indian market ($USD706.16K).

Compensation vs Earnings: Umesh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Umesh Revankar
MD, CEO & Director3.3yrs₹6.70mno data
Parag Sharma
CFO & Executive Director0yrs₹5.86mno data
Vivek Achwal
Compliance Officer & Company Secretary8.4yrs₹4.65mno data
S. Sunder
Executive Director of Accounts & Administration0yrsno datano data
Sanjay Mundra
Senior Vice President0yrsno datano data
Pratap Paode
Chief Executive Officer of Shriram Equipment Finance Company Limited8.8yrsno datano data
Sameer Malhotra
Chief Executive Officer of Shriram Automall India Limited8.8yrsno datano data
Hardeep Singh
Chief Executive Officer of West & North0yrsno datano data

8.6yrs

Average Tenure

55yo

Average Age

Experienced Management: 511218's management team is seasoned and experienced (8.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Umesh Revankar
MD, CEO & Director3.3yrs₹6.70mno data
Puneet Bhatia
Non-Executive & Non-Independent Director13.3yrsno datano data
Srinivasan Sridhar
Non-Executive Independent Director5.3yrs₹1.19mno data
Subramanian Lakshminarayanan
Independent Chairman of the Board5.1yrs₹1.19mno data
Kishori Udeshi
Non Executive Independent Director7.3yrs₹1.22mno data
Pradeep Panja
Additional Non Executive-Independent Director1.3yrs₹487.60kno data
D. Ravi
Non-Executive Non-Independent Director4.7yrsno datano data
Ignatius Viljoen
Non-Independent Non-Executive Director0.8yrsno datano data

4.9yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 511218's board of directors are considered experienced (4.9 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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: ₹290.150b
  • Shares outstanding: 226.90m
  • 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 financing for heavy duty trucks; medium, intermediate, and light duty trucks; pickup and mini trucks; passenger vehicles; farm equipment; and construction vehicle and equipment. It also provides small business finance loans, including dealer funding for new and used vehicle dealers, and tire dealers; working capital funding for customers; and funding to transport ecosystem. In addition, the company offers financing for tractors, three wheelers, multi-utility vehicles, etc.; and finance for working capital and engine replacement, as well as tire-loans. Further, it provides life and general insurance products, as well as accepts various non-cumulative and cumulative deposits. As of March 31, 2019, the company operated a network of 1,545 branches and 838 rural centers. It primarily serves first time buyers, driver-turned-owners, and small road transport operators. Shriram Transport Finance Company Limited was founded in 1979 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:50
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
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.