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Mumbai: Last week was full of turmoil for the Indian stock markets. On the global front, Donald Trump’s victory in the US and Ukraine’s attack on Russia with US missiles increased geopolitical tensions amid fears of a Russian nuclear war, and on the other hand, sentiment over the Adani case went down. After the elections in Maharashtra and Jharkhand during the week, the market will see the positive impact of the mandate in favor of the BJP led alliance in Maharashtra to form a stable and strong government in the state. The huge rise in the stock markets at the end of last week on Friday and now the possibility of stoppage of selling by foreign funds will cause an immediate U-turn in the market. The process of inevitable reform can now be considered over. Now, barring any unwanted geopolitical factors, the market will be seen trading in a bullish consolidation phase from here. There will be a rise in selected stocks, but keeping in mind the fundamentals and overvaluation factor, it would be advisable to stay away from buying weak stocks. In the coming week, Nifty spot may close at 24444 above the support level of 23555 at 24111 and Sensex may close at 80777 above the support level of 77977 at 80000.
Arjun’s eyes: Shriram Finance Ltd.
BSE (511218), NSE (ShriramFin) Listed, Pay Rs 10, Shriram Finance Limited, the flagship company of Shriram Group established in the year 1979, is a leading entrepreneur in consumer finance, life insurance, general insurance. India’s largest stock-based company active in housing finance, broking and distribution is a retail asset financing NBFC company. The company is a leader in finance for pre-owned commercial vehicles and two-wheelers among small road transport operators and small business entrepreneurs. Shriram Transport Finance Company Limited is a part of Shriram Group. Which has a significant presence in the group loan business. STFC is primarily active in commercial vehicle financing, focusing on pre-owned as well as new truck finance business. The company is a deposit taking NBFC with 1758 branches, 831 rural centers and partnerships with over 500 private financiers.
product:
The company’s products include (1) Loans for commercial vehicles – including commercial goods vehicles, passenger vehicles, tractors and farm equipment finance, construction equipment finance. (2) Fund all customers, dealers, private financiers and the entire commercial vehicle ecosystem in commercial credit. (3) Fixed deposits, RD and other services in deposits. (4) Working capital loans include vehicle insurance loan and tire finance, tax finance, toll finance, repair-top up loan, fuel finance, invoice discounting. (5) Life insurance includes Shriram Life Cashback Term Plan, Shriram Life Smart Protection Plan. (6) Emergency Credit Line Guarantee Scheme to meet the working capital requirements of business enterprises-micro, small and medium enterprise borrowers.
The company has 3037 branches across the country, more than 58000 business team members serving more than 82 lakh customers. The company has more than 700 rural centers and 700 branches across Tamil Nadu. The company’s AUM stands at Rs 2,142,334.7 million at the end of Q3 2024. 48 percent in commercial vehicles, 19 percent in passenger vehicles, 7 percent in construction equipment, 11 percent in MSME, 6 percent in two-wheelers, 3 percent in gold and 4 percent in personal loans. The borrowed money of the company in the year 2023 is Rs 1,719.84 crore. 17 per cent in non-convertible debentures, 24 per cent in public deposits, 14 per cent in securitization, 26 per cent in term loans, 7 per cent in ECB loans, 2 per cent in subordinated debt, 6 per cent in external commercial bonds and 4 per cent in others. In FY2023, the total NPA of the company has been 6.21 percent and the net NPA has been 3.19 percent.
Subsidiary Company SHFL: is a subsidiary company of Shriram Housing Finance Limited Company. Its AUM at the end of Q3FY2024 is Rs 12,025 crore.
Affiliated Company SAMIL: is an affiliate of Shriram Automol Limited Company. Which is India’s largest digital pre-owned marketplace connecting pre-owned vehicles and equipment buyers and sellers.
NCDs: The company raised Rs 733 crore by issuing 73,300 NCDs of face value Rs 1,00,000 on March 24.
Acquisition: The board on April 24 has approved the acquisition of 100 per cent stake in Shriram Overseas Investments Private Limited from Shriram Investments Holdings Private Limited.
Earnings-EPS: Rs 98.29 in March 2021, Rs 100.10 in March 2022, Rs 159.69 in March 2023, Rs 195.69 in March 2024, Rs 233 expected in March 2025
Book Value: March 2021 Rs.852.30, March 2022 Rs.958.61, March 2023 Rs.1151.41, March 2024 Rs.1290.55, Expected March 2025 Rs.1525
Dividend: 120 percent in 2019, 50 percent in 2020, 180 percent in 2021, 180 percent in 2022, 350 percent in 2023 and 450 percent in 2024
Shareholding pattern: Promoters Shriram Group hold 25.40 percent, mutual funds hold 10.64 percent, FPIs, FIIs hold 53.29 percent, HNIs hold 7.09 percent and individual shareholders up to Rs 2 lakh hold 3.58 percent.
Proposed share split: The company has proposed to split its Rs 10 paid-up shares at Rs 5 each.
financial result:
(1) Full year April 2023 to March 2024: Earnings per share Rs 35,000 crore, Net Profit Margin-NPM 21 per cent, Net Profit Rs 7198 crore and Earnings per Share-EPS Rs 195.69.
(2) H1 April 2024 to September 2024: Net income up 19 per cent to Rs. 19,694 crore, Net Profit Margin-NPM increased by 20.60 percent, Net Profit increased by 18.28 percent to Rs. Quarterly earnings per share became Rs 4056 crore. – EPS has achieved Rs 110.57.
(3) Expected full year April 2024 to March 2025: Expected net income of Rs 41,700 crore, expected net profit margin of 21 per cent-NPM, expected net profit of Rs 8757 crore, full year earnings per share reported- Rs 233. Expected EPS of
Thus (1) The author has no investment in the shares of the above company. Authors may have direct or indirect personal vested interests in research sources. Consult a qualified investment financial advisor before making any investment decisions. The author, Gujarat Samachar or any other person will not be responsible for any possible loss on investment. (2) Shriram Finance Limited’s paid-up share of Rs 10 each as of Friday, November 22, 2024 (proposed share split at Rs 5), with expected full year earnings per share of Rs 233 from April 2024 to March 2025 and expected book value of Rs 233 on BSE. Price of Rs 1525 Rs 2851 (Rs 2842 on NSE). Available A/E of 12.25.