Shriram Transport Finance Company: Accelerating at Massive Returns of 10,690%

If you had invested ₹1 lakh in Shriram Transport Finance Company Ltd in October 2002, you could have hightailed a return of 10,690% in 20 years. Today, it’s investors are riding sky-high with ₹1.20 crore with returns of ₹1,06,90,950 and dividends of ₹13,64,589 profits. Let’s take a look at the company’s performance over the years.

🚚 Stock Name: Shriram Transport Finance Company Ltd.
🚚 NSE: $SRTRANSFIN

⭐ About The Company
From the house of the Shriram conglomerate, Shriram Transport Finance Ltd. (STFC) was founded in 1978 and provides a range of financial services such as:
💵 Commercial vehicle financing
💵 Life and general insurance
💵 Loans
💵 Stock brokerage

In 1993, it started a lease portfolio management scheme as well.

🤝 Trusted Name
STFC has developed a national presence, becoming the most trusted name in the financing field due to its:
💫 Effective business strategy
💫 Credit maximization
💫 Broad geographical coverage

A turning point for the company was in March 1995, when they issued rights of 64.95 lakh equity shares, amounting to over ₹100 crores in earnings.

🧑🏼‍💼 Branches And Employees
STFC has a network of more than 1700 branches, 19,000 business teams and a workforce of 24,670 employees. It caters to a customer base of nearly 21 lakhs. STFC’s business model allows access to commercial vehicles for small businesses, including those from rural communities. The company is known for being among the largest facilitators of MSMEs in terms of acquiring vehicular assets, general insurance, loans and more.

🔮 Future Plans
FY23 will be an eventful year for STFC, as they plan to raise ₹50 billion in six months through non-convertible debentures. In addition, a merger is underway for the company with two other Shriram Group flagships—Shriram City Union Finance and Shriram Capital.

💰 Stock Value
On October 18, 2002, the shares of the company were trading at ₹11.05, while they were priced at ₹1192.4 as of October 17, 2022.