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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Transwarranty Finance Ltd

About the Company - Transwarranty Finance Ltd

Transwarranty Finance Ltd. is a Public Limited Listed company incorporated on 09/08/1994 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L65920MH1994PLC080220 and registration number is 080220. Currently Company is involved in the business activities of Other credit granting. Company’s Total Operating Revenue is Rs. 6.72 Cr. and Equity Capital is Rs. 24.46 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & Investments403, Regent Chambers, Mumbai Maharashtra 400021mail@transwarranty.com
http://www.transwarranty.com
Management
NamePosition Held
Mr. Kumar NairChairman & Managing Director
Mr. Ramachandran UnnikrishnanDirector & CFO
Mr. Sudharsanan NairIndependent Director
Mr. Pravin KhatauIndependent Director
Mrs. Nirmala ParabIndependent Director
Mr. Shishir Vasant DalalIndependent Director

Transwarranty Finance Ltd. Share Price Update

Share PriceValue
Today₹11.12
Previous Day₹11.12

Basic Stock Data of Transwarranty Finance Ltd

Market Cap 53.5 Cr.
Current Price 11.0
High / Low15.5/7.55
Stock P/E
Book Value 5.77
Dividend Yield0.00 %
ROCE5.49 %
ROE41.5 %
Face Value 10.0

Data Source: screener.in

Competitors of Transwarranty Finance Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Paisalo Digital Ltd 7,350 Cr. 164164/42.044.4 27.80.04 %11.4 %8.92 % 1.00
AD Manum Finance Ltd 55.8 Cr. 74.497.5/40.014.3 85.80.00 %11.2 %8.15 % 10.0
MAS Financial Services Ltd 5,532 Cr. 337381/22723.2 1000.34 %11.4 %14.2 % 10.0
JSW Holdings Ltd 7,552 Cr. 6,8047,019/3,67246.1 20,7790.00 %2.04 %1.68 % 10.0
Times Guaranty Ltd 110 Cr. 122166/41.262.0 49.60.00 %2.50 %2.18 % 10.0
Industry Average36.96 Cr140.683856.640.08%7.71%7.03%8.2

Transwarranty Finance Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales2.172.148.082.572.312.627.302.622.743.551.922.693.25
Expenses2.452.357.942.382.492.386.172.752.812.926.752.763.38
Operating Profit-0.28-0.210.140.19-0.180.241.13-0.13-0.070.63-4.83-0.07-0.13
OPM %-12.90%-9.81%1.73%7.39%-7.79%9.16%15.48%-4.96%-2.55%17.75%-251.56%-2.60%-4.00%
Other Income0.420.600.400.520.580.460.220.640.39-0.050.220.270.95
Interest0.880.731.031.171.091.151.321.541.311.481.281.151.21
Depreciation0.140.150.150.150.140.140.140.120.120.120.120.110.12
Profit before tax-0.88-0.49-0.64-0.61-0.83-0.59-0.11-1.15-1.11-1.02-6.01-1.06-0.51
Tax %0.00%0.00%7.81%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.17%0.00%0.00%
Net Profit-0.88-0.49-0.58-0.61-0.84-0.59-0.11-1.16-1.11-1.02-6.00-1.07-0.50
EPS in Rs-0.18-0.10-0.12-0.12-0.17-0.12-0.02-0.24-0.23-0.21-1.23-0.22-0.10

Transwarranty Finance Ltd Quarterly Chart

Transwarranty Finance Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales33.3523.7314.2513.2315.8219.3017.2317.897.5615.3215.7211.7111.41
Expenses26.2725.5015.1313.4815.6017.4014.9315.4513.4415.0813.4115.2415.81
Operating Profit7.08-1.77-0.88-0.250.221.902.302.44-5.880.242.31-3.53-4.40
OPM %21.23%-7.46%-6.18%-1.89%1.39%9.84%13.35%13.64%-77.78%1.57%14.69%-30.15%-38.56%
Other Income0.991.030.610.980.450.530.370.800.560.860.840.321.39
Interest1.760.880.520.370.720.730.942.302.743.374.725.605.12
Depreciation0.680.640.510.520.410.340.860.450.660.590.570.490.47
Profit before tax5.63-2.26-1.30-0.16-0.461.360.870.49-8.72-2.86-2.14-9.30-8.60
Tax %10.48%-20.35%0.00%-37.50%0.00%10.29%5.75%8.16%1.49%1.75%0.00%0.11%
Net Profit5.05-2.72-1.30-0.22-0.461.220.820.45-8.59-2.80-2.15-9.29-8.59
EPS in Rs1.19-0.56-0.27-0.04-0.090.250.170.06-1.35-0.64-0.47-1.84-1.76
Dividend Payout %21.09%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Transwarranty Finance Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-153.86%52.21%83.08%-109.09%365.22%-32.79%-45.12%-2008.89%67.40%23.21%-332.09%
Change in YoY Net Profit Growth (%)0.00%206.07%30.87%-192.17%474.31%-398.00%-12.34%-1963.77%2076.29%-44.19%-355.31%

Transwarranty Finance Ltd Growth

Compounded Sales Growth
10 Years:-7%
5 Years:-7%
3 Years:16%
TTM:-33%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:-14%
TTM:-133%
Stock Price CAGR
10 Years:11%
5 Years:21%
3 Years:73%
1 Year:33%
Return on Equity
10 Years:-5%
5 Years:-19%
3 Years:-25%
Last Year:-42%

Transwarranty Finance Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital24.4624.4624.4624.4624.4624.4624.4624.4624.4624.4624.4648.4648.84
Reserves32.3431.5330.9730.6530.4831.476.881.81-4.82-7.99-10.25-19.25-20.69
Borrowings10.295.424.963.793.128.3516.1019.3623.0243.2542.9440.4244.44
Other Liabilities36.2216.8414.7415.7315.8320.5620.0222.1519.2134.7445.6036.5728.04
Total Liabilities103.3178.2575.1374.6373.8984.8467.4667.7861.8794.46102.75106.20100.63
Fixed Assets7.998.658.007.297.046.7716.6116.2916.8516.3115.8015.2615.06
CWIP0.000.000.000.000.000.000.000.000.000.000.000.000.00
Investments2.112.0829.0923.2424.1520.010.890.680.700.130.140.150.17
Other Assets93.2167.5238.0444.1042.7058.0649.9650.8144.3278.0286.8190.7985.40
Total Assets103.3178.2575.1374.6373.8984.8467.4667.7861.8794.46102.75106.20100.63

Transwarranty Finance Ltd Reserves and Borrowings Chart

Transwarranty Finance Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -0.87-12.15-0.231.65-0.260.610.43-0.920.82-9.6015.86-12.20
Cash from Investing Activity -9.6815.91-0.26-0.35-0.791.13-0.48-0.290.24-5.17-7.711.74
Cash from Financing Activity 5.86-7.14-1.49-0.840.15-0.871.631.960.3917.13-4.8616.47
Net Cash Flow-4.69-3.38-1.980.46-0.890.871.580.741.442.363.296.01

Transwarranty Finance Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days173.6966.45114.75129.12106.13128.41155.91263.40308.99243.97271.89441.99
Inventory Days0.000.000.000.000.003.0117.204.470.000.00
Days Payable599.97988.94817.42
Cash Conversion Cycle173.6966.45114.75129.12106.13-468.54-815.83-549.56308.99243.97271.89441.99
Working Capital Days296.16242.4186.06269.82245.72391.85314.37336.64493.4399.35-174.3799.12
ROCE %10.85%-1.74%-1.29%-0.02%0.33%3.13%3.30%5.30%-12.14%0.92%4.10%-5.49%

Transwarranty Finance Ltd Financial Efficiency Indicators Chart

Transwarranty Finance Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters53.62%53.62%53.62%53.62%53.62%53.62%53.61%61.81%61.81%61.81%61.81%61.79%
Public46.38%46.38%46.38%46.38%46.38%46.38%46.38%38.19%38.21%38.19%38.21%38.21%
No. of Shareholders4,7984,8734,9435,0525,4985,6335,6525,7405,8655,8646,3257,345

Transwarranty Finance Ltd Shareholding Pattern Chart

No. of Transwarranty Finance Ltd Shareholders

This stock is not held by any mutual fund

Transwarranty Finance Ltd ROCE Trend

Transwarranty Finance Ltd EPS Trend

Transwarranty Finance Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-3.27-0.95-1.28-2.690.12
Diluted EPS (Rs.)-3.27-0.95-1.28-2.690.12
Cash EPS (Rs.)-1.82-0.64-0.90-3.240.36
Book Value[Excl.RevalReserv]/Share (Rs.)6.917.678.549.7113.25
Book Value[Incl.RevalReserv]/Share (Rs.)6.917.678.549.7113.25
Revenue From Operations / Share (Rs.)2.236.045.842.706.93
PBDIT / Share (Rs.)-0.661.290.43-2.181.32
PBIT / Share (Rs.)-0.761.050.19-2.441.14
PBT / Share (Rs.)-1.92-0.87-1.17-3.560.20
Net Profit / Share (Rs.)-1.92-0.87-1.15-3.510.18
NP After MI And SOA / Share (Rs.)-1.86-0.93-1.28-2.690.12
PBDIT Margin (%)-29.6221.277.49-80.6819.05
PBIT Margin (%)-34.1117.383.36-90.6316.40
PBT Margin (%)-85.85-14.52-20.01-132.102.91
Net Profit Margin (%)-85.79-14.52-19.64-130.062.64
NP After MI And SOA Margin (%)-83.10-15.40-21.85-99.801.78
Return on Networth / Equity (%)-30.80-16.03-18.97-33.521.14
Return on Capital Employeed (%)-9.6210.611.94-21.938.38
Return On Assets (%)-8.47-2.21-3.30-10.640.44
Long Term Debt / Equity (X)0.130.300.160.110.00
Total Debt / Equity (X)1.383.012.601.150.73
Asset Turnover Ratio (%)0.040.080.100.020.18
Current Ratio (X)1.210.990.991.070.91
Quick Ratio (X)1.210.990.991.070.91
Interest Coverage Ratio (X)-0.570.660.32-1.951.41
Interest Coverage Ratio (Post Tax) (X)-0.650.540.16-2.141.20
Enterprise Value (Cr.)60.1841.2938.4526.2130.77
EV / Net Operating Revenue (X)5.562.792.693.971.82
EV / EBITDA (X)-18.7613.1335.90-4.929.53
MarketCap / Net Operating Revenue (X)4.161.310.380.900.64
Price / BV (X)1.541.360.330.300.41
Price / Net Operating Revenue (X)4.161.310.380.900.64
EarningsYield-0.19-0.11-0.56-1.110.02

Transwarranty Finance Ltd Profitability Ratios (%)

Transwarranty Finance Ltd Liquidity Ratios

Transwarranty Finance Ltd Liquidity Ratios (%)

Transwarranty Finance Ltd Interest Coverage Ratios (X)

Transwarranty Finance Ltd Valuation Ratios

Fair Value / Intrinsic Value of Transwarranty Finance Ltd

Fair Value: ₹36.64

The stock is undervalued by 233.06% compared to the current price ₹11

*Investments are subject to market risks

Strength and Weakness of Transwarranty Finance Ltd

StrengthWeakness
    1. The stock is trading at a high valuation with an average P/B ratio of -0.16 and average Dividend Yield of -17.52%.
    2. The stock has a low average ROCE of 0.60%, which may not be favorable.
    3. The stock has a high average Working Capital Days of 225.05, which may not be favorable.
    4. The stock has a high average Cash Conversion Cycle of 1.92, which may not be favorable.
    5. The company has higher borrowings (20.42) compared to reserves (10.24), which may suggest financial risk.
    6. The company has not shown consistent growth in sales (16.66) and profit (-2.11).

    Should I Buy Transwarranty Finance Ltd Share Now?

    • Considering various financial indicators, investors might exercise caution regarding investment in Transwarranty Finance Ltd:
      1. Net Profit Margin: -85.79%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: -9.62% (Industry Average ROCE: 6.94%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. Interest Coverage Ratio (Post Tax): -0.65
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      4. Quick Ratio: 1.21
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      5. ✓ Stock P/E of N/A (Industry average Stock P/E: 15.26)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      6. ✗ Total Debt / Equity: 1.38
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Transwarranty Finance Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE