BSE:532498

Stock Analysis Report

Shriram City Union Finance

Executive Summary

Shriram City Union Finance Limited, a deposit accepting non-banking finance company, engages in retail finance activities in India.

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.4%

BSE:532498

-3.6%

IN Consumer Finance

-2.1%

IN Market


1 Year Return

-31.9%

BSE:532498

-3.2%

IN Consumer Finance

-14.7%

IN Market

532498 underperformed the Consumer Finance industry which returned -3.1% over the past year.

532498 underperformed the Market in India which returned -14.6% over the past year.


Share holder returns

532498IndustryMarket
7 Day-3.4%-3.6%-2.1%
30 Day-4.3%1.9%-3.9%
90 Day-7.3%-10.2%-10.1%
1 Year-30.9%-31.9%-2.5%-3.2%-12.9%-14.7%
3 Year-34.0%-36.0%59.3%56.0%17.7%11.5%
5 Year-16.1%-19.9%233.9%218.2%35.4%22.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Shriram City Union Finance undervalued based on future cash flows and its price relative to the stock market?

8.81x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Shriram City Union Finance's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Shriram City Union Finance's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Shriram City Union Finance is good value based on earnings compared to the IN Consumer Finance industry average.

Shriram City Union Finance is good value based on earnings compared to the India market.


Price Based on Expected Growth

Shriram City Union Finance is poor value based on expected growth next year.


Price Based on Value of Assets

Shriram City Union Finance is overvalued based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

How is Shriram City Union Finance expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Shriram City Union Finance's revenue is expected to grow by 9.7% yearly, however this is not considered high growth (20% yearly).

Shriram City Union Finance's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).

Shriram City Union Finance's revenue growth is positive but not above the India market average.

Shriram City Union Finance's earnings growth is positive but not above the India market average.

Shriram City Union Finance's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Shriram City Union Finance is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Shriram City Union Finance performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Shriram City Union Finance's year on year earnings growth rate has been positive over the past 5 years.

Shriram City Union Finance's 1-year earnings growth exceeds its 5-year average (27.3% vs 15.9%)

Shriram City Union Finance's earnings growth has exceeded the IN Consumer Finance industry average in the past year (27.3% vs 15%).


Return on Equity

Shriram City Union Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Shriram City Union Finance used its assets more efficiently than the IN Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Shriram City Union Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Shriram City Union Finance's financial position?


Financial Position Analysis

Shriram City Union Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Shriram City Union Finance's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Shriram City Union Finance's level of debt (316.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (365.7% vs 316.8% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on Shriram City Union Finance's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

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

1.70%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Shriram City Union Finance's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.65%).

Shriram City Union Finance's dividend is below the markets top 25% of dividend payers in India (2.64%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (7.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (7.6x coverage).


Next Steps

Management

What is the CEO of Shriram City Union Finance's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average board tenure


CEO

Yalamati Chakravarti (56yo)

0.1yrs

Tenure

0

Mr. Yalamati Srinivasa Chakravarti, B. Com is the Managing Director, Chief Executive Officer and Executive Director at Shriram City Union Finance Ltd since July 1, 2019. He served as the Chief Operating Of ...


CEO Compensation Analysis

Yalamati's remuneration is lower than average for companies of similar size in India.

Insufficient data for Yalamati to compare compensation growth.


Board Age and Tenure

5.6yrs

Average Tenure

60.5yo

Average Age

The tenure for the Shriram City Union Finance board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buy₹170,696,83203 Jul 19
Shriram Group Pvt. Co.
EntityCompany
Shares102,717
Max Price₹1,767.02
Buy₹25,668,02903 Jul 19
Shriram Financial Ventures (Chennai) Private Limited
EntityCompany
Shares16,484
Max Price₹1,561.79
Sell₹92,18301 Apr 19
K Murugan
EntityIndividual
Shares50
Max Price₹1,843.67
Sell₹89,50627 Mar 19
K Murugan
EntityIndividual
Shares50
Max Price₹1,790.13
Sell₹35,70014 Mar 19
M. Vijaya
EntityIndividual
Shares21
Max Price₹1,700.00
Sell₹409,60011 Mar 19
M. Vijaya
EntityIndividual
Shares250
Max Price₹1,638.40
Sell₹1,550,00013 Dec 18
P. Narasareddy
EntityIndividual
Shares1,000
Max Price₹1,550.00

Ownership Breakdown


Management Team

  • Chitta Dash (55yo)

    Senior VP

    • Tenure: 0.0yrs
  • Yalamati Chakravarti (56yo)

    MD, CEO & Non-Independent Executive Director

    • Tenure: 0.1yrs
  • Ramasubramanian Chandrasekar (56yo)

    Chief Financial Officer

    • Tenure: 2.6yrs
  • Jai Ponde

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Subramaniam Jambunathan (49yo)

    Executive Director

    • Tenure: 0.0yrs
  • Gouse Jilani (51yo)

    Executive Director

    • Tenure: 0.0yrs
  • Sri Pakrasi (45yo)

    President

    • Tenure: 0.0yrs
  • Nagendra Singh (46yo)

    Head of Personal Loan & Corporate Lending

    • Tenure: 0.0yrs
  • Sameer Karekatte (53yo)

    Senior Vice President

    • Tenure: 0.0yrs
  • Anand Wagh (53yo)

    Senior Vice President

    • Tenure: 0.0yrs

Board Members

  • Shashank Singh (43yo)

    Non-Independent Non-Executive Director

    • Tenure: 3.8yrs
  • Ranvir Dewan (66yo)

    Non-Independent Non-Executive Director

    • Tenure: 9.6yrs
  • Diwakar Gandhi (61yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Debendranath Sarangi (66yo)

    Independent Non-Executive Chairman

    • Tenure: 4.3yrs
  • Coimbatore Muralidharan (71yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Maya Sinha (60yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
  • Yalamati Chakravarti (56yo)

    MD, CEO & Non-Independent Executive Director

    • Tenure: 0.1yrs
  • Venkataraman Murali (60yo)

    Independent Non-Executive Director

    • Tenure: 8.6yrs
  • Pranab Pattanayak (70yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
  • Duruvasan Ramachandra (57yo)

    Non-Independent Non-Executive Director

    • Tenure: 7.2yrs
    • Compensation: ₹6.60m

Company Information

Shriram City Union Finance Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shriram City Union Finance Limited
  • Ticker: 532498
  • Exchange: BSE
  • Founded: 1986
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹90.397b
  • Shares outstanding: 66.00m
  • Website: https://www.shriramcity.in

Location

  • Shriram City Union Finance Limited
  • No:123 Angappa Naicken Street
  • Chennai
  • Tamil Nadu
  • 600001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532498BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2003
SHRIRAMCITNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2003

Biography

Shriram City Union Finance Limited, a deposit accepting non-banking finance company, engages in retail finance activities in India. The company offers fixed deposits; and financing for two wheelers and thr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 12:39
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.