Shriram Transport Finance Company (STFC) is a flagship company of Shriram Group. It is one of the largest commercial vehicle finance companies in India.Market Capitalisation
The market capitalisation of Shriram Transport Finance Company as on 10 July 2018 is a little over Rs. 27,250 crore.
Company’s Wealth and Recent Performance
- For the Q4 ended 31st March 2018, STFC recorded a net interest income of Rs.1,486.92 crore. It was up by 29.98% as against Rs.1,143.97 crore in the previous year during the same period. The company’s profit after tax was Rs.144.60 crore as against Rs.149.63 crore for the same period of the previous year.
- The company recorded a profit after tax (PAT) of Rs.1,568.02 crores, up 24.70% as against Rs.1,257.34 crore in the same period of the previous year. Meanwhile, the net income for the year ended 31 March 2018 was up by 21.83% to Rs.5,594.47 crore as against Rs.4,591.90 crore in the previous year during the same period.
- The total assets under management of the company were at Rs.95,306.30 crore as on 31 March 2018 as against Rs.78,760.93 crore on 31 March 2017. The company’s earning per share saw a surge by 24.70% at Rs.69.11 as against Rs.55.42 recorded in the previous year during the same period.
- In the financial year 2017-18, STFC proposed a final dividend of Rs.6 (60%) per share. In November 2017, it also released an interim dividend of Rs.5 (50%) per share, bringing the total dividend to Rs.11 (110%) per share as compared to the total dividend of Rs.10 (100%) per share given in 2016–17.
- In June 2018, the company announced that it will raise up to Rs.5,000 crore by issuing public 5 crore secured redeemable non-convertible debentures (NCDs). STFC is also in the process of discussing a possible merger with Shriram City Union Finance (SCUF).
- STFC claims it has a market share of 20-25% in pre-owned truck financing while the market share for new truck financing is approximately at 7-8%. The company's customer base is slated at over 18 lakh.
Shriram Transport Finance Company Stock Trends in 2018
- On 1 January 2018, the opening price of Shriram Transport Finance Company stock was Rs.1,491 on NSE. The share price increased by over 20 points in the first half of the month and ended the month at Rs.1,353. The scrip was pretty stable in the month of February and was at Rs.1,316 at the end of the month.
- In March, the price of the stock crossed Rs.1,400 in the first half and ended the month at Rs.1,451. The scrip gained strength in the month of April and jumped 50 points to cross Rs.1,500 in the first half of the month. By the end of April, the price of the stock increased further and was at Rs.1,627. However, the stock price started to fall in May by over 160 points in the first half of the month and was at Rs.1,468. The scrip picked up pace and ended the month at Rs.1,473.
- In the month of June, the stock increased marginally at the beginning but it fell by over 130 points and ended the month at Rs.1,300.
Shriram Transport Finance Company Stock Trends in 2016 and 2017
- The opening price of the stock on 1 January 2016 was Rs.859 on NSE. It fell by 50 points in the first half of the month and was at Rs.750. The scrip picked up pace at the beginning of February by over 100 points. It was stable throughout the month and was at Rs.803 by the end of February. The price of stock gained strength in March and continued to do well the whole month. By the end of March, the Shriram Transport Finance Company stock was at Rs.947. The scrip increased marginally in the month of April and ended the month at Rs.964.
- In May, the price of the stock crossed Rs.1,000 in the first half of the month. The scrip increased by over 220 points in the same month and ended the month of May at Rs.1,194. In June, the stock price changed marginally but was pretty stable for the rest of the month. However, it gained strength in July and reached almost Rs.1,300 in the first half of the month. It fell again by the end of the month and was at Rs.1,236. In August, the scrip was pretty stable and changed marginally.
- The opening price of the stock in September was Rs.1,235 and it fell by over 100 points by the end of the month at Rs.1,123. The scrip continued to fall in the month of October by another 90 points and ended the month at Rs.1,080. In November, the price of the stock continued its downfall and fell by another 180 points by the first half of the month however, it picked up pace and ended the month at Rs.917. At the beginning of December the scrip fell by another 20 points and was at Rs.839 by the end of the month.
- On 2 January 2017, the opening price of the stock was Rs.856 on NSE. The scrip increased by 100 points in the first half of the month and remained stable for the remaining half. By the end of January, the price of the stock was Rs.987. The scrip changed marginally in February and fell by around 50 points by the end of the month. In March, the stock gained some strength and was up by over 130 points by the end of the month. In the month of April, the price of the stock changed marginally and ended the month at Rs.1,042.
- The scrip fell by few points in the month of May and June. It did not show a huge change and ended the month at Rs.990. In July, the scrip continued to be stable in the first of the month and fell again in the second half of the month. The stock fell further in August and was at Rs.976 by the end of the month.
- In September, the scrip was again stable and did not fluctuate much. The price of the stock finally picked up pace in October and hit Rs.1,104 by the first half of the month. It ended the month at Rs.1,200. In November, the scrip crossed Rs.1,300 and continued to increase throughout the month. By the end of December 2017, the opening price of the stock was Rs.1,452.
Should you invest in Shriram Transport Finance Company?
- The shares of Shriram Transport Finance Company has seen a significant rise in the price over the couple of year. It has also not showcased a dramatic price change since past couple of months and the stocks have been pretty stable.
- The shares of the company can be a good investment for a long-term basis. However, it is strongly advised that you do your own research before investing in the market.
STFC was incorporated in 1979 and is registered as a deposit taking NBFC with Reserve Bank of India (RBI) under section 45IA of the Reserve Bank of India Act ,1934. In addition to commercial vehicles, the company’s portfolio includes three wheeler tractors, passenger commercial vehicles, multi-utility vehicles, and construction equipments. Moreover, the company also offers loans against gold ornaments and for personal consumption. In 2015, the company approved the amalgamation of Shriram Equipment Finance Company Ltd (SEFCL). STFC was awarded as ‘Asia’s most promising Brand’ by WCRC for the year 2017 under Transport Finance Category. The company has 1,121 branches and 862 rural centres. It has tied up with more than 500 private financiers in India, as on 31 December 2017.
Management of the company
Mr. Umesh Govind Revankar (Managing Director & CEO)
Mr. Umesh Govind Revankar joined Shriram Group as a trainee in 1987. He took over as the Managing Director and CEO of STFC in October 2016. He has been with the company since over 31 years and has been responsible for various of its important business operations. He holds a bachelor’s degree in business management from Mangalore University and a master of business administration (MBA) in finance. Moreover, Umesh has also attended the Advanced Management Program at Harvard Business School.
Listings in NSE, BSE, and Indices
The stock of Petronet LPG Ltd. is available for trading on the two major stock exchanges of India - The National Stock Exchange Limited (NSE) and The Bombay Stock Exchange (BSE).
Sector: Infrastructure - Finance - leasing and purchase
The company forms a part of important indices like:
- Nifty 100
- Nifty 200
- Nifty 500
- Nifty Next 50
- S&P 100
- S&P 200
- S&P 500
- S&P BSE Finance
3rd Floor, West Wing, G Block,
Bandra-Kurla Complex, Bandra (East),
Mumbai - 400051.
Tel. No.: +91 22 4095 9595
Fax: +91 22 4095 9596/97
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