NSEI:SRTRANSFIN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer and fair value.


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


Market Performance


7 Day Return

-1.0%

NSEI:SRTRANSFIN

-1.8%

IN Consumer Finance

-0.7%

IN Market


1 Year Return

-22.2%

NSEI:SRTRANSFIN

0.5%

IN Consumer Finance

-12.1%

IN Market

SRTRANSFIN underperformed the Consumer Finance industry which returned 0.5% over the past year.

SRTRANSFIN underperformed the Market in India which returned -12.1% over the past year.


Share holder returns

SRTRANSFINIndustryMarket
7 Day-1.0%-1.8%-0.7%
30 Day-2.8%-1.0%-3.2%
90 Day-5.9%-5.2%-7.6%
1 Year-21.4%-22.2%1.1%0.5%-10.3%-12.1%
3 Year-16.4%-18.8%64.9%61.4%18.9%12.8%
5 Year15.8%10.2%246.0%229.7%37.6%24.7%

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 based on future cash flows and its price relative to the stock market?

8.88x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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

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


Price Based on Expected Growth

Shriram Transport Finance is good value based on expected growth next year.


Price Based on Value of Assets

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


Next Steps

Future Growth

How is Shriram Transport Finance expected to perform in the next 1 to 3 years based on estimates from 25 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Shriram Transport Finance's revenue is expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).

Shriram Transport Finance's earnings are expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).

Shriram Transport Finance's revenue growth is expected to exceed the India market average.

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

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

18.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

Shriram Transport Finance's 1-year earnings growth is less than its 5-year average (3.2% vs 18.6%)

Shriram Transport Finance's earnings growth has not exceeded the IN Consumer Finance industry average in the past year (3.2% vs 13.6%).


Return on Equity

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


Return on Assets

Shriram Transport 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 Transport 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 Transport Finance's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Shriram Transport Finance's level of debt (486.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (454.9% vs 486.9% today).

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

Unable to confirm if the interest payments on Shriram Transport 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 1.3x debt.


Next Steps

Dividend

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

1.56%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Shriram Transport Finance's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.63%).

Shriram Transport Finance's dividend is below the markets top 25% of dividend payers in India (2.52%).

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 (9.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (8.4x coverage).


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

Umesh Revankar (55yo)

2.8yrs

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

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

Umesh's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

8.1yrs

Average Tenure

55yo

Average Age

The average tenure for the Shriram Transport Finance management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.4yrs

Average Tenure

59.5yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buy₹40,586,06803 Jul 19
Shriram Financial Ventures (Chennai) Private Limited
EntityCompany
Shares37,519
Max Price₹1,081.75
Buy₹361,571,23402 Jul 19
Shriram Group Pvt. Co.
EntityCompany
Shares331,924
Max Price₹1,098.92

Ownership Breakdown


Management Team

  • Umesh Revankar (55yo)

    MD, CEO & Director

    • Tenure: 2.8yrs
    • Compensation: ₹6.70m
  • Vivek Achwal (57yo)

    Compliance Officer & Company Secretary

    • Tenure: 7.9yrs
    • Compensation: ₹4.65m
  • Parag Sharma

    CFO & Executive Director

    • Tenure: 0.0yrs
    • Compensation: ₹5.86m
  • S. Sunder

    Executive Director of Accounts & Administration

    • Tenure: 0.0yrs
  • Pratap Paode (51yo)

    Chief Executive Officer of Shriram Equipment Finance Company Limited

    • Tenure: 8.3yrs
  • Sameer Malhotra

    Chief Executive Officer of Shriram Automall India Limited

    • Tenure: 8.3yrs
  • Hardeep Singh

    Chief Executive Officer of West & North

    • Tenure: 0.0yrs
  • Sanjay Mundra

    Senior Vice President

    • Tenure: 0.0yrs

Board Members

  • Puneet Bhatia (53yo)

    Non-Executive & Non-Independent Director

    • Tenure: 12.8yrs
  • Srinivasan Sridhar (68yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: ₹1.19m
  • Subramanian Lakshminarayanan (73yo)

    Chairman of the Board

    • Tenure: 4.6yrs
    • Compensation: ₹1.19m
  • Umesh Revankar (55yo)

    MD, CEO & Director

    • Tenure: 2.8yrs
    • Compensation: ₹6.70m
  • Kishori Udeshi (76yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: ₹1.22m
  • Pradeep Panja (64yo)

    Additional Director

    • Tenure: 0.8yrs
    • Compensation: ₹487.60k
  • D. Ravi (55yo)

    Non-Executive Non-Independent Director

    • Tenure: 4.2yrs
  • Ignatius Viljoen (46yo)

    Non-Independent Non-Executive Director

    • Tenure: 0.3yrs

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: SRTRANSFIN
  • Exchange: NSEI
  • Founded: 1979
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹234.310b
  • 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, inte ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 13:01
End of Day Share Price2019/08/16 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.