By:

Sub Group C1
Advisor to Acquirer
 NBFC Vehicle Finance Overview
• CAGR- 15% (Increase by 3%)
• Rating of 300 bps according to CRISIL.
• Growth of Loans and advances at 14.9% as
compared to banks which is 6.2%.
• Amount of Loans advanced in the year rose to
Rs.14,846 Bn, growing at a rate of 12.7%.
• Net Profit- Decline of 17.3% at Rs.263 Bn.
• Profits- Decline in profits by 14.44% at Rs.314 Bn,
despite a rise in Revenue.
• Cost to Income Ratio- Rose by 3.81% at Rs.78.9
Bn.
 Major Peers of Sriram transport
finance
• Sundaram fin
• Bajaj holdings
• IIFL
• Edelweiss
• M&M FIN
 Comparison chart of Capital Structure
and Major Ratios
Name of the PAT Market cap EPS Debt equity ROA ROE Current ratio
company Margin ratio

Sundaram fin 12.22 16656.22 4.67 1.33 2.63 14.91 2.46

Bajaj holdings 293.68 32846.86 11.41 0 280.24 13.88 4.27

IIFL holdings 13.96 15987.54 25.38 3.92 2.31 15.61 4.72

Aditya Birla Capital 11.90 21605.91 29.05 2.76 32.46 10.47 1.65

Edelweiss 9.25 17031.46 32.74 3.93 179.71 13.89 3.47

M M fin 7.51 28688.26 14.77 3.59 0.98 7.35 3.67

 Competitive Analysis
Players/ Shriram Tata Capital L&T Financial Cholamandalam Bajaj
Parameters Transport Services Finance Finserv
Finance
Presence PAN India PAN India PAN India PAN India PAN India

Lead Product Vehicle and Home and Home, Equipment Loans,

Equipment Consumer Vehicle and financing, SME Insurance
Financing Loans Equipment Loans and Wealth
Revenue (crs.) 12,276.83 7,015.90 478.37 5,425.77 252.24

EBITDA Margin 62.61% 72.97% 102.36% 70.79% 70.13%

EV (crs.) 77,101.92 32,299.70 32,769.24 54,182.61 82,399.04

NPA 2.83% 0.70% 2.81% 1.70% 0.38%

EPS 69.11 2.04 1.49 62.26 8.90

 Acquirer VS Target
SHRIRAM TRANSPORT FINANCE COMPANY LTD.
• It was established in 1979
• It has 1301 branches & 864 rural centres
• Largest asset financing NBFCs

MAHINDRA & MAHINDRA FINANCIAL SERVICES LTD.

• It was established in 1991
• It has 1290 offices
• Largest NBFC in rural and semi-rural areas.

SHRIRAM M&M
Net profit margin 12.85% 12.47%
Debt-equity ratio 3.82 3.21
DPR 7.23 18.04
EPS 69.11 14.44