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Market Cap

₹331.9b

Last Updated

2021/05/07 12:20 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Mediocre balance sheet second-rate 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 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 511218's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-3.4%

511218

1.0%

IN Consumer Finance

2.0%

IN Market


1 Year Return

74.3%

511218

114.8%

IN Consumer Finance

66.6%

IN Market

Return vs Industry: 511218 underperformed the Indian Consumer Finance industry which returned 109.1% over the past year.

Return vs Market: 511218 exceeded the Indian Market which returned 67.3% over the past year.


Shareholder returns

511218IndustryMarket
7 Day-3.4%1.0%2.0%
30 Day-12.7%2.5%1.2%
90 Day-6.3%1.9%4.9%
1 Year80.9%74.3%121.7%114.8%69.2%66.6%
3 Year-7.6%-12.7%82.2%65.2%28.2%21.8%
5 Year30.4%20.9%234.3%196.4%90.5%76.0%

Long-Term 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?

12.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 511218 (₹1297.2) is trading above our estimate of fair value (₹565.9)

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 (12.8x) compared to the IN Consumer Finance industry average (16.4x).

PE vs Market: 511218 is good value based on its PE Ratio (12.8x) compared to the Indian market (19.5x).


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 (1.5x) compared to the IN Consumer Finance industry average (0.6x).


Future Growth

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

31.2%

Forecasted Diversified Financials industry annual growth in earnings


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 (6.8%).

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: Insufficient data to determine if 511218's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 511218's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 511218's Return on Equity is forecast to be high in 3 years time


Past Performance

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

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 511218 has high quality earnings.

Growing Profit Margin: 511218's current net profit margins (30.2%) are lower than last year (30.5%).


Past Earnings Growth Analysis

Earnings Trend: 511218's earnings have grown by 9.7% 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 (-0.5%) over the past year, making it difficult to compare to the Consumer Finance industry average (4%).


Return on Equity

High ROE: 511218's Return on Equity (11.5%) is considered low.


Financial Health

How is Shriram Transport Finance's financial position?


Financial Position Analysis

Short Term Liabilities: 511218's short term assets (₹1,251.9B) exceed its short term liabilities (₹165.9B).

Long Term Liabilities: 511218's short term assets (₹1,251.9B) exceed its long term liabilities (₹915.2B).


Debt to Equity History and Analysis

Debt Level: 511218's debt to equity ratio (413.9%) is considered high.

Reducing Debt: 511218's debt to equity ratio has reduced from 497.2% to 413.9% 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


Dividend

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

1.39%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 08 2021Ex Dividend DateJun 16 2021Dividend Pay DateJul 24 202138 days from Ex DividendBuy in the next 39 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 511218's dividend (1.39%) is higher than the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: 511218's dividend (1.39%) is low compared to the top 25% of dividend payers in the Indian market (1.75%).


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.7%), 511218's dividend payments are well 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?

9.9yrs

Average management tenure


CEO

Umesh Revankar (56 yo)

4.58yrs

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 ($USD149.21K) is below average for companies of similar size in the Indian market ($USD681.86K).

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

Experienced Management: 511218's management team is seasoned and experienced (9.9 years average tenure).


Board Members

Experienced Board: 511218's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 511218 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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: ₹331.865b
  • 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


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 Analysis2021/05/07 12:20
End of Day Share Price2021/05/07 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.