Shriram Finance Ltd | Fundamental Analysis | 2022 | CA Rachana Ranade

"the stock P is at just 10.3 as compared to the industry PE of 25, some people might feel that it is undervalued let's buy the stock but that should not be the case ideally you should check the financials, because if the financials are not up to the mark that might be the reason why stock is not getting a good PE"

"currently if you are checking out the revenue line it is continuously increasing and the TTM revenue is at the highest lifetime high, even the financing profit you can see at 4739 crores it is at an all-time high, same case is with profit before tax as well."

"quarters also currently if you see June 2022 quarter at the highest financing profit is also at almost at an all-time high even PBT is also fair enough at 1,307 crores"

"So if you see as a YOY percentage their loans have increased at nine point nine eight percent and QOQ figure their loans have increased at two point eight seven percent"

"deposit also you can see 29.53% jump in a YOY basis and 5.9% jump on a QOQ basis."

"the net interest income again an important parameter on a YOY basis this has increased by 25.35 percent but YOY need not be given a lot of importance because previous year June 21 was nothing but the Covid hit year but on a QOQ basis it has just increased by 0.53 percent"

"Gross NPA Ratio which was seven point zero seven percent has come down to seven percent good sign. Gross NPA lower the better and if I am comparing YOY, it has gone down from eight point one eight percent to seven percent"

"will the company be able to continue its growth trajectory or not? That will be possible if they are able to disburse more number of loans and more value of loans but when will that happen? That will happen if the demand for trucks for commercial vehicles and for construction equipment's also increases"

"well if I am talking about the overall infrastructure spending with something like a national infra pipeline the overall boost for the infra and road structure is also going to increase but will management be able to ride this trend or not is the big question"

"especially due to inflation, for that management side that we do not really have a pain point here because we are able to pass on the inflation to our consumers"