Best Equity Tips – SRT Finance Report By Market Magnify

SHRIRAM TRANSPORT FINANCE COMPANY LTD

Company is 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.

  • Company 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.
  • STFC decided to finance the much neglected Small Truck Owner. Shriram understood the power of ‘Aspiration’ much before marketing based on ‘Aspiration’ became fashionable.
  • STFC was set up with the objective of offering the common man a host of products and services that would be helpful to him on his path to prosperity. Over the decades, the company has achieved significant success in reaching this objective, and has created a tremendous sense of loyalty amongst its customers.
  • With a track record of about 30 years in this business, we are among the leading organized finance provider for the commercial vehicle industry with a focus to provide various credit facilities to STOs.

Fundamental Analysis

Shriram Transport Finance Company Ltd., incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 31156.67 Crore) operating in Finance sector.

Shriram Transport Finance Company Ltd. key Products/Revenue Segments include Interest which contribute 99.26 % of Total Sales, Commission which contributed 0.60 % of Total Sales, Income From Sale Of Share & Securities which contributed 0.07 % of Total Sales and Income From Financial Services which contributed 0.05 % of Total Sales for the year ending 31-Mar-2017.

  • For the quarter ended 30-09-2017, the company has reported a Standalone sales of Rs 2978.90 Cr, up 2.78 % from last quarter Sales of Rs 2898.39 Cr and up 9.79 % from last year same quarter Sales of Rs 2713.20 Cr Company has reported net profit after tax of Rs 479.11 Cr
  • Return on equity of the company is 11.16% compare to 6.68% of peer average.
  • Gross profit margin of the company is 65.32%.
  • Net profit margin of the company is 11.60%.
  • Promoters stake in the com[any is 26.08%

Fundamentals

Market cap

Rs. 31156.67 cr.

Face value

Rs. 10.00
Book value

Rs. 499.46

EPS

Rs. –

52 Week H/L

Rs. 1378.00 / 778.05

Dividend Payout

100%

Listed at

NSE/BSE

P/E Ratio

24.62
Industry P/E

43.45

Technical Analysis

The stock has given resistance level consolidation breakout around 52 weeks high above 1360 level on weekly chart and now currently trading around 1373 levels.

  • Consolidating breakout around higher levels below 52 week high.
  • Given breakout on weekly chart above level of 1360.
  • MACD has given upward crossover on daily chart.

Technically, the stock may move up above the levels of 1380 it could test the levels of 1440-1510 in the next month. Technical stop loss should be at 1299.

Supports and Resistance (Monthly)

Resistance 1-      1380                      Support 1-1305

Resistance 2-      1446                      Support 2-1230

Resistance 3-      1520                     Support 3-1160

SRTRANSFIN WEEKLY CHART

SRTRANSFIN

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