[Attachment(s) from nikhil vadia included below]
Dear Sir / Madam
Shriram Group started accepting Secured Non Convertible Debentures (NCD). Its right time to invest in same when Share Market is volatile or feel risky to invest further. In this scenario, it will give good & safe Fixed return.
Shareholders : Reputed Institutes Such as Chrys Capital, Citicorp, Axis Bank, ICICI Ventures, ICICI AMC, ICICI Prudential Life Insurance Co. Ltd., Reliance Capital, Fidelity, Merill Lynch, New Bridge Capital-USA etc. besides Shriram Group
Advantages of this NCD compared to earlier NCD :
Please note that NCD will be issued in Physical form, so even those who are not having Demat A/c can also invest in the same this time.
There is no lock in period like earlier NCD. You can Invest in the same for different duration as per your choice from 1 year to 7 years.
Comparision Between Shriram Transport Finance Co.Ltd. & Mahindra Finance Ltd.
Shriram Upto 11.50% Secured NCD
V/s.
Mahindra Finance 10.50% - Fixed Deposits
| | Shriram Transport Finance Co. Ltd. | Mahindra Finance Ltd. |
| Incorporation | 1979 | 1991 |
| Income F.Y.2011-12 | 5,890 Crs. | 2,767 Crs. |
| Profit After Tax 2011-12 | 1,257 Crs. | 620 Crs. |
| NPA | 0.40% | 0.90% |
| Reserves & Surplus | 5,766 Crs. | 2,848 Crs. |
| CRISIL Rating | High Credit Rating – "AA" by CRISIL & "AA-" by CARE | FAA+ (Stable & Highest Safety) by CRISIL |
| Rate of Interest | 11.40% (Cumulative & Non Cumulative) | 10.25% (Cumulative) 10.00% (Non Cumulative) + 0.25% Sr.Citizen/ Shareholders |
| Nature | Secured | Unsecured |
| Share Price (As on 15.06.2012) | 523 | 608 |
Comparative analysis of HDFC Ltd. & STFC Ltd (both hire purchase companies). where it is clearly visible that STFC has scored better on almost all the parameters.
| FY 2007-11 (CAGR%) | HDFC Ltd. | STFC Ltd. |
| EPS (Earning per Share) | 19 | 51 |
| Dividend | 20 | 21 |
| Increase of Stock price | 23 | 61 |
| ROE(Return on Equity) | 23 | 26 |
Other Highlights in addition to above Points :
Ø STFC is India 's Largest Asset Financing Non-Banking Finacial Corporation (NBFC) with Rs.40,214 Crore of Assets Under Management (AUM). The company has a customer base of over 10,00,000 & More than 650 Branches across the country. Its AUM has grown by a compounded annual growth rate of over 65% in the last 4 years
Ø Employee strength of approximately 15,057 as of March 31, 2012
Ø Shriram Financial business grew almost 50 times in Market capitalization
Ø Earnings Per Share (EPS) for an investor in Shriram Transport Finance Co. Ltd. (STFC) which contributes 70% to the profits of Shriram Capital Ltd. Was Rs.11.01 in 2006-07 soared to 54.49 in 2010-11, an increase of almost 400%.
Ø It has 20-25% Market Share in this segment. The company Finances 5-12 year old Trucks / Commercial Vehicles where Competition from organized players is non existent.
Ø Shriram Transport Finance Co.Ltd. wins the ICAI Award for Financial Reporting.
Ø Mr. R. Shridhar Ranked No.6 among Top 25 India's Best CEO's.
When Mr.Shridhar took over as Managing Director in 2000, STFC was a medium size Non Banking Finance Co. (NBFC) with assets of Rs.5,000 Crores, a Net Profit of Rs.50 Crore & Market Capitalisation of Rs.500 Crores.
Today, it is the largest asset financing NBFC in india, with assets of Rs.18,000 Crores, Net Profit of Rs.1,257 Crore & Market Capitalisation of Rs.36,000 Crores.
In Fact, Mr.Shridhar is No.1 on both country adjusted & industry adjusted total shareholder returns in the Business today – Harvard Business review Best CEO's Ranking.
Ø Tied up with Axis Bank to distribute credit cards to small truck owners & Distributed over 2,40,000 credit cards as of March 31, 2012
Ø No. of Mutual Funds invested in STFC was 13 in May'09, 25 in Dec'09, 30 in May'10 & 38 in May'11
Profits Details: (Rs. in Crs)
| Year | Profit before tax | Profit after tax |
| 2011-12 | 1,880.91 | 1,257.45 |
| 2010-11 | 1,515.67 | 1,229.88 |
| 2009-10 | 1,324.59 | 873.12 |
| 2008-09 | 920.63 | 612.40 |
| 2007-08 | 605.83 | 389.82 |
| 2006-07 | 289.22 | 190.39 |
Pls Find attached herewith Shriram Secured NCD Term Sheet & FAQ for yr reference.
Shriram Transport Finance Company. (STFC), established in 1979, is one of the India's largest professionally managed asset finance company, specializing in vehicle finance.
Ø The company is the leader in used truck finance and vehicle finance industry with market share of 25%.
Ø Expertise in loan origination, valuation and collection, construction equipments and road logistics.
Ø "Best PE-Backed Company Award for 2008" in research-cum-survey conducted by Venture Intelligence.
Ø "Silver Shield" for "Excellence in Financial Reporting" by the Institute of Chartered Accountants of India (ICAI)
Ø Company's High Credit Rating – "AA" by CRISIL & "AA-" by CARE
Ø Presence is widely spread with more than 502 branches and tie-up with 500 private financiers across the country.
Ø The Company has more than 15000 employees.
Ø More than 10,00,000 Truck Financed, with Rs. 40214 Crores of Assets under Management in March 2012.
Ø Company's Rs. 10000 Crores Retail Fund based is built up through 75000 agents from 50,00,000 Investors.
Ø Current Net NPA is as low as 0.40% as on March 2012.
EQUITY PARTICIPATION
Ø Share currently traded @ about Rs. 500 (June 2012), with 52 weeks high low of Rs. 708 - Rs. 416
For any queries & Forms, Kindly Contact us.
Thx & Regards
Nikhil Vadia - 98197 55658
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Attachment(s) from nikhil vadia
2 of 2 File(s)
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