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. More Details


Snowflake Analysis

Fair value with moderate growth potential.


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 more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 511218's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of Indian stocks.


Market Performance


7 Day Return

15.4%

511218

1.4%

IN Consumer Finance

0.3%

IN Market


1 Year Return

-8.2%

511218

6.0%

IN Consumer Finance

7.0%

IN Market

Return vs Industry: 511218 underperformed the Indian Consumer Finance industry which returned 9.3% over the past year.

Return vs Market: 511218 underperformed the Indian Market which returned 8.9% over the past year.


Shareholder returns

511218IndustryMarket
7 Day15.4%1.4%0.3%
30 Day42.8%26.7%9.0%
90 Day36.2%19.0%8.8%
1 Year-5.1%-8.2%10.8%6.0%8.9%7.0%
3 Year-16.6%-20.9%66.6%51.2%5.1%0.009%
5 Year31.3%22.2%252.3%211.1%51.8%40.4%

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?

11.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 511218 (₹1065.55) is trading above our estimate of fair value (₹421.05)

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 (11.9x) compared to the IN Consumer Finance industry average (12.6x).

PE vs Market: 511218 is good value based on its PE Ratio (11.9x) compared to the Indian market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: 511218 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 511218 is overvalued based on its PB Ratio (1.3x) compared to the IN Consumer Finance industry average (0.6x).


Next Steps

Future Growth

How is Shriram Transport Finance forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

28.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 511218's forecast earnings growth (28.2% per year) is above the savings rate (7.2%).

Earnings vs Market: 511218's earnings (28.2% per year) are forecast to grow faster than the Indian market (24.2% per year).

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

Revenue vs Market: 511218's revenue (7.5% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: 511218's revenue (7.5% 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 (13.4%).


Next Steps

Past Performance

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

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 511218 has a large one-off loss of ₹13.7B impacting its September 30 2020 financial results.

Growing Profit Margin: 511218's current net profit margins (26.2%) are lower than last year (34.3%).


Past Earnings Growth Analysis

Earnings Trend: 511218's earnings have grown by 13% 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 (-24.4%) over the past year, making it difficult to compare to the Consumer Finance industry average (-3.9%).


Return on Equity

High ROE: 511218's Return on Equity (10.3%) 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 (₹1,141.8B) exceed its short term liabilities (₹131.9B).

Long Term Liabilities: 511218's short term assets (₹1,141.8B) exceed its long term liabilities (₹844.2B).


Debt to Equity History and Analysis

Debt Level: 511218's debt to equity ratio (405.3%) is considered high.

Reducing Debt: 511218's debt to equity ratio has reduced from 504.6% to 405.3% 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?

0.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 511218's dividend (0.56%) is higher than the bottom 25% of dividend payers in the Indian market (0.53%).

High Dividend: 511218's dividend (0.56%) is low compared to the top 25% of dividend payers in the Indian market (2.15%).


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 not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6.7%), 511218's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 511218's dividends in 3 years are forecast to be thoroughly covered by earnings (12.5% payout ratio).


Next Steps

Management

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

9.4yrs

Average management tenure


CEO

Umesh Revankar (56 yo)

4.08yrs

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 ($USD148.40K) is below average for companies of similar size in the Indian market ($USD768.94K).

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 & Director4.08yrs₹10.99mno data
Parag Sharma
CFO & Executive Directorno data₹6.30m0.016%
₹ 43.7m
Vivek Achwal
Compliance Officer & Company Secretary9.17yrs₹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 Limited9.58yrsno datano data
Sameer Malhotra
Chief Executive Officer of Shriram Automall India Limited9.58yrsno datano data
Hardeep Singh
Chief Executive Officer of West & Northno datano datano data

9.4yrs

Average Tenure

56yo

Average Age

Experienced Management: 511218's management team is seasoned and experienced (9.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Umesh Revankar
MD, CEO & Director4.08yrs₹10.99mno data
Srinivasan Sridhar
Non-Executive Independent Director6.08yrs₹1.32mno data
Subramanian Lakshminarayanan
Independent Non Executive Chairman5.83yrs₹1.17mno data
Kishori Udeshi
Non Executive Independent Director8.08yrs₹1.42mno data
Pradeep Panja
Non Executive-Independent Director2.08yrs₹1.42mno data
Devaki Ravi
Non-Executive Non-Independent Director5.42yrsno datano data
Ignatius Viljoen
Non-Independent Non-Executive Director1.5yrsno datano data

5.4yrs

Average Tenure

65yo

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: ₹269.650b
  • 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 Analysis2020/11/26 12:10
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
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.