Shriram Transport Finance Company Ltd

General Overview:
Shriram Transport Finance Company, Ltd are a part of the "SHRIRAM"
conglomerate which has significant presence in financial services viz.,
commercial vehicle financing business, consumer finance, life and general
insurance, stock broking, chit funds and distribution of financial products such
as life and general insurance products and units of mutual funds. Apart from
these financial services, the group is also present in non-financial services
business such as property development, engineering projects and information
technology. STFC was incorporated in the year 1979 and is registered as a
Deposit taking NBFC with Reserve Bank of India under section 45IA of the
Reserve Bank of India Act, 1934.

Shareholding Pattern:

The Shareholding Pattern of Shriram Transport Finance Company Ltd.

presents the Promoter's holding, FII's holding, DII's Holding, and Share
holding by general public etc.

Holder's Name No of Shares % Share Holding

No. Of Shares 267047513 100%

Promoters 67021853 25.10%
Foreign Institutions 153459347 57.47%
N Banks Mutual Funds 12956637 4.85%
Others 2527034 0.95%
General Public 12759302 4.78%
Financial Institutions 18323340 6.86%

% Share Holding
FinancialInstit
utions
GeneralPublic 7%
Others
NBanksMutua
5% Promoters
lFunds 1% 25%
5% Promoters

ForeignInstitutions

NBanksMutualFunds

Others

GeneralPublic

FinancialInstitutions
ForeignInstitu
tions
57%

Management of the company:

S. Lakshminarayanan: CHAIRMAN

Mr. Lakshminarayanan Subramanian is a non-executive Director on our Board.

He holds master’s degree in Science in chemistry and post graduate diploma
from University of Manchester (U.K) in Advanced Social & Economic Studies.
Mr. Lakshminarayanan is a member of the Indian Administration Service (IAS-
retired) and as such held several senior positions in the Ministry of Home
Information and Broadcasting of the Govt of India and in the Department of
Tourism, culture and public Relations, Department of Mines, Mineral
Resources and Relief and Rehabilitation of the Govt of Madhya Pradesh.

Umesh Govind Revankar: Vice Chairman & Managing Director

Mr. Umesh Govind Revankar holds a bachelor’s degree in business management

from Mangalore University and a master of Business administration (MBA) in
finance. He attended the advanced management program at Harvard business
school. Mr. Revankar started his career with the Shriram group as an executive
trainee in 1987. He has been associated with the Shriram group for the last 28
years and has extensive experience in the financial services industry. During his
stint with Shriram group, he has shouldered various responsibilities and worked in
several key roles of business operations.

Name Designation
D V Ravi Director
Ignatius Michael
Director
Viljoen
Kishori Udeshi Independent Director
Parag Sharma Chief Financial Officer
Pradeep Kumar Panja Independent Director
S Lakshminarayanan Chairman(Non Exe.&Ind. Director)
S Sridhar Independent Director
Umesh Revankar Vice Chairman & Mng. Director
Vivek M Achwal Co. Secretary & Compl. Officer

Ratios:
FY FY FY FY FY
ANNUAL 2021 2020 2019 2018 2017
Return on Equity
11.5 13.84 16.13 18.61 11.16
(%)
Return on Capital
14.86 16.63 16.85 10.5 14.15
Employed (%)
Return on Assets
1.92 2.19 2.44 2.61 1.7
(%)
Interest Coverage
1.36 1.42 1.5 1.59 1.37
Ratio (x)
Asset Turnover
13.41 14.48 14.73 13.8 14.64
Ratio (x)
Price to Earnings (x) 14.41 5.99 11.22 12.84 19.34
Price to Book (x) 1.66 0.83 1.81 2.39 2.16
EV/EBITDA (x) 10.08 8.62 9.96 10.92 8.19
EBITDA Margin (%) 71.58 71.57 72.97 75.68 65.65

Ratio
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 SWOT ANALYSIS:
STRENGTH:
 The company's diverse product line can help it expand its customer base
and compensate for losses in one product area with gains in another.
 Strong online presence on various social networking sites, as well as
effective social media management, may boost the impact of positive e-
WOM and help build strong customer relationships.
 The firm's strong financial position and good health may allow it to make
more investments.
 Access to vendors who provide lower-cost raw materials can boost
overall business efficiency.
 The firm's competitive standing can be improved in a variety of ways,
including lower costs, increased accessibility, and improved brand
image.

WEAKNESS:
 Poor inventory management techniques may cause the organisation to
lose efficiency. The shortfall or surplus inventory can result in a cash
shortage or insufficient current assets, both of which have a detrimental
impact on liquidity and overall business performance.
 Inadequate funding for marketing and promotion efforts limits a
company's capacity to grow its customer base and encourage repeat
purchases.
 Due to a lack of local/international market expertise, cutting back on
research and development might hurt a company's performance.
 Workforce productivity suffers as a result of high workplace stress and
low worker morale.
 The incompatibility of an organization's leadership style with its main
strategic objectives can lead to a lack of direction in the firm.

OPPORTUNITY:
 The exponential growth of the population, particularly in existing or new
client segments, presents a significant opportunity for corporate growth.
 If a company has good market information, changing client wants,
tastes, and preferences might be seen as an opportunity.
  An increase in customers' discretionary money and the number of
affluent clients can be used to introduce more high-end products.
 Reduced interest rates make it easier for businesses to get funds and
obtain credit at a cheaper cost.
 The government's subsidies and other initiatives aimed at improving the
business environment are a favourable external environmental factor for
Shriram Transport Finance.
 Improvements in customer lifestyles and standards translate into
increased consumption of consumer products and services, as well as
greater possibilities to stimulate purchases.

THREAT:
 Shriram Transport Finance faces a big danger from the changing
regulatory framework and the adoption of new, harsher laws. It
complicates and complicates the corporate organization's compliance
with legal criteria. Failure to comply with new regulations increases the
possibility of costly legal action.
 Inflation raises the cost of production and has an impact on corporate
profitability.
 When supplied products/services are not environmentally friendly, the
expanding environmental sustainability trends pose a serious challenge.
It attracts unfavourable press and criticism from environmentalists, and
it has a detrimental impact on the brand's image in a competitive
market.
 Globalization forces organizations to cross national borders and deal
with cultural variety, which can be problematic if the organization lacks
cultural intelligence.

Competitive Analysis:
 Muthoot Finance: Muthoot Finance is one of Bajaj Finserv's main
competitors. Muthoot Finance was established in 1887 in Kochi, Kerala.
Muthoot Finance works in the field of consumer finance and credit
cards. Muthoot Finance makes $2.2 billion less revenue than Bajaj
Finserv.
  Mahindra Finance: Bajaj Finserv's main opponent is Mahindra Finance.
Mahindra Finance is a public corporation based in Mumbai,
Maharashtra, that was created in 1991. Mahindra Finance is a company
that works in the Consumer Finance & Credit Cards sector. Mahindra
Finance has 5,107 less employees than Bajaj Finserv.

Name Last Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover
Bajaj Finance 6,758.50 4,07,939.24 23,532.16 3,955.51 1,35,804.58
Muthoot
1,459.25 58,545.02 10,557.21 3,722.18 60,975.53
Finance
Bajaj
4,122.45 45,880.19 367.47 198.59 14,016.77
Holdings
Shriram
1,236.60 33,237.78 17,421.00 2,487.27 1,27,764.78
Trans
IRFC 22.65 29,600.17 15,770.47 4,416.13 3,59,024.07
Sundaram
2,367.70 26,306.06 3,953.74 809.05 17,194.05
Fin
L&T Finance 77.55 19,177.24 171.26 116.05 12,783.51
M&M
140.15 17,315.95 10,395.20 335.15 73,288.19
Financial
Poonawalla
179.25 13,704.15 1,848.73 -578.36 9,856.84
Fin
Shriram City 2,032.35 13,414.53 5,730.90 1,010.94 33,683.83
Manappura
158.15 13,385.26 5,172.25 1,697.91 24,542.04
m Fin
Bharat Fin 898 12,594.17 3,036.64 984.6 9,002.97
Motilal
765.9 11,238.12 2,161.45 712.4 5,610.93
Oswal
Credit Access
636.15 9,905.90 2,027.53 142.39 12,415.53
Gr
Edelweiss 78.45 7,349.55 343.61 716.22 4,963.99
IDFC 42.5 6,784.85 7.72 8.98 9,261.10
Tata Inv Corp 1,187.65 6,008.95 140.06 108.83 14,110.20

Conclusion:
Growth that is less than predicted in the face of increased competition and
growing expenses is unlikely to make the company foam. According to the
observations, the majority of consumers have a favourable impression of
Shriram Transport Finance Company Limited and are delighted with their
services, such as quick financing and simple documentation. In order to
compete with other financial and non-banking financial institutions, the
company is constantly expanding in the field of finance as a Non-Banking
Finance Company. In the Indian scene, STFC is the Non-Ban King Financial
Company, and it is the leader with a monopolistic position in financing for
Heavy Commercial Vehicles.
Growth in Future: In the same quarter a year ago, the company had a net
profit of 320 crore. In comparison to the March 2021 quarter, the net was
down 77.5 percent from 755 crore. The company's assets under management
increased by 7% year over year, owing to a 13 percent increase in the used
commercial vehicle business.