5 Stocks Buffet

5 BUFFETT
STOCKS
WOULD BUY DURING
THIS CASH CRISIS
Warren Buffett
Stocks
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TABLE OF CONTENTS
Page
Introduction 3
Stock # 1
5
Navneet Education
Stock # 2
9
HDFC Bank
Stock # 3
13
TCS
Stock # 4
17
Shiram Transport Finance Ltd
Stock # 5
22
Bajaj Auto
26
Disclosure
29
Disclaimer
Introduction | 2
Introduction
Dear Subscriber,
The efficacy of demonetisation of high value notes is a subject of intense debate.

The pros and cons of this drastic move by the government is still being weighed
out. However, markets have a mind of their own. Markets seem to have taken a
turn for the worse. Volatility has reigned supreme amid this cash crisis. This gloom,
doom and uncertainties has provided opportunities to purchase good businesses at
favourable prices.
Warren Buffett thrives in this environment. Not because he is a sadist. It is because

situations of maximum pessimism bring in attractive prices. Undoubtedly, Warren
Buffett is a master at exploiting these opportunities. Testimony to this is his long
term track record. Since taking control of Berkshire Hathaway in 1965, Berkshire has
multiplied wealth for its shareholders by a whopping 13,052 times.
There is no doubt that Warren Buffett is one of the greatest investors of all times.
However, are his principles of investing valid from an Indian markets perspective?
We firmly believe so.
While, stock selection for Buffett is primarily the American stock markets. The investing
principles that he employs to identify and invest in the business are timeless and
transcends geographical boundaries.
Warren Buffett has written extensively over the kind of investing he practices. In
other words, he has been quite generous in sharing the key principles he sticks to
while making his investing decisions. ValuePro is an attempt to make good use of
these investing principles or the 'Buffett-would-buy' criteria as we call them.
So what are these criteria? Well, it will be difficult to spell in detail all of them here.
However, at the heart of his stock selection process are four very simple rules.
3 | Introduction
Every stock that he invests in has a business model he understands, has some sort
of competitive advantage that is enduring, has a management team that is honest,
and allocates capital intelligently. Lastly, it is available at a valuation with a sufficient
margin of safety.
These principles are exactly what we have kept in mind while creating and managing
our ValuePro groups of stocks. We now have two groups of stocks as part of the
ValuePro service. The first group is predominantly large cap. The second group has
predominantly midcap and small cap stocks.
Subscribers who are absolutely new to the service could do well to know that the
ValuePro Group One has fourteen open positions, while Group Two has twelve open
positions. Our view is that barring IDFC and IDFC Bank, subscribers could consider to
buy all the stocks that are in the open position in both the groups of stocks provided
they have not already been bought earlier. According to us, in a scenario of ideal
allocation of funds, no single stock should account for more than 7-8% of the
funds set aside for ValuePro. However, please note that this allocation will vary
from person to person. For something that works best for you, we recommend you
talk to your investment advisor.
This issue we lay a special focus on five stocks among both the groups that are robust
enough to not only survive rather thrive despite the current cash crisis. These are
strong businesses we believe that fulfil our "Buffett Would Buy" criteria amid these
uncertain and volatile times.
Without much ado, let us have a look at these stocks and why they meet Buffett's
investment criteria.
Introduction | 4
Stock # 1
Navneet Education
Group Two
Background
Navneet Education has a strong regional presence in the content and stationery
businesses primarily in western India (Maharashtra and Gujarat) with about a 60%
share of the organised market. The company has more than 225 authors on its royalty
program. Authors favour Navneet despite the fact that the company pays royalties as
a percentage of revenues while the broader industry pays a lump sum.
Navneet has to its credit more than 5,000 titles in English, Hindi, Marathi, Gujarati,
and other Indian and foreign languages. Sales are driven by a strong marketing team
with 450 representatives across Gujarat, Maharashtra, and the rest of India who pitch
to more than 25,000 private schools every year. Navneet operates primarily in the
content and stationery segments. The content publishing business is a higher margin
business for the firm while stationery is a relatively low margin business.
Why it fits the Warren Buffett philosophy?
Navneet enjoys a strong brand recall and has proven pricing power in its business
segments over the years. This indicates the presence of a sustainable moat for the
company. Navneet Education has grown its revenues and profits at a steady com-
pounded annual growth rate (CAGR) of 12.7% and 13.4% respectively over the last
ten years. Over this time, the free cash flow (FCF) has grown at a rate of 28.2%. As
a result, the company has required minimal debt to fund its growth. Therefore, the
company boasts a return on capital employed averaged over 28% during the decade.
The company has also paid out steadily increasing dividends over the years.
5 | Navneet Education
The sustainability of the moat stems from the fact that the company has been pro-
active with regards to their consistently strong margins and good return ratios. De-
spite the volatility in paper prices, the company’s chief raw material, the company
was able to maintain its profit margins over the years. On account of its thrust on
content quality and effective branding initiatives, the company is able to pass on cost
increases to the end consumers. The company's ability to maintain its margins even
during adverse macroeconomic conditions reflects its strong business fundamentals
and pricing power.
Navneet recognised the importance of the digital medium and made its foray into
the e-learning space in 2008. It has developed curriculum-based digital content un-
der the brand name eSense for the state boards of Maharashtra and Gujarat. eSense
has a presence in around 3,000 institutions and 18,000 classrooms.
Valuation
Ideally, a stock trading at a discount of 20-25% to its intrinsic value offers adequate
margin of safety according to us. The stock of Navneet is currently trading at almost
8% discount to its intrinsic value. In view of the company’s strong cash generation
potential and business tail winds, we recommend that one could consider buying the
stock for the ValuePro Group Two.
Navneet Education | 6
Annexure for Navneet Education:
Shareholding (%, Sept-16)
Category (%)
Promoters 61.8
Banks, Fis and MFs 15.2
FIIs 6.8
Public 13.0
Others 3.3
Total 100.0
Market Data
Price as on 29th December, 2016 (Rs) 109
52 week H/L (Rs) 115 / 76
NSE symbol NAVNETEDUL
BSE code 508989

No. of shares (m) 238.2
Face value (Rs) 2.0
FY16 dividend/share (Rs) 2.2
Free float (%) 38.2
Market cap (Rs m) 26,025

Avg. 52-week liquidity in millions (No. of shares) (BSE+NSE com-
90
bined)
Price to sales * (times) 2.5
Price to earnings * (times) 17.2
Dividend Yield (%) 2.0
Price to book value * (times) 4.5

*Based on trailing 12-month numbers
7 | Navneet Education
Financials at a glance (Consolidated)
(Rs m) FY12 FY13 FY14 FY15 FY16

Key growth parameters
Sales (Rs m) 6,300 8,183 8,964 9,939 9,624
Sales growth (%) 12.9% 29.9% 9.5% 10.9% -3.2%

Operating profit margin (%) 22.8% 24.2% 23.8% 24.3% 23.3%
Net profit (Rs m) 780 1,067 1,152 1,303 1,034

Net profit margin (%) 12.4% 13.0% 12.8% 13.1% 10.7%
Key qualitative ratios

Sales per share (Rs) 26.4 34.4 37.6 41.7 40.4
Earnings per share (Rs) 3.3 4.5 4.8 5.5 4.3
Debt/Equity ratio (Times) 0.4 0.4 0.5 0.3 0.2
Return on equity (%) 22.7% 27.8% 25.7% 25.5% 22.1%

Return on capital employed
28.4% 31.9% 28.8% 30.1% 28.5%
(%)
Dividend payout (%) 42.8% 40.2% 41.4% 40.2% 50.7%
Navneet Education | 8
Stock # 2
HDFC Bank
Group Two
Background
HDFC Bank is the second largest private bank in India as measured by assets. The
bank is known for its relentless focus on execution. The bank has a country wide
presence with over 4,520 branches and employs over 87,000 people to cater to needs
of its customers.
When it comes to servicing its retail customers, HDFC Bank has relied on the model
of wide franchise and low cost deposit base. This is reflected in the form of continued
pricing power and sustainability of above average NIMs (net interest margins). With
its consistency, conservatism with respect to margins, resulting profits have proved
to be extremely rewarding for the bank. What is impressive is the bank is not resting
on its past laurels and continues to invest in products thus effectively competing with
banks and non-banks in the digital banking space
Banks typically have a natural advantage to ward off any impending competition i.e.
‘Switching costs’. For any individual, the allure of cheaper cost of loans, high interest
rates on deposits might be temporarily enticing. But it is the switching costs which
ultimately results in a very low customer turnover.
HDFC Bank, with its plain vanilla banking, has utilized this switching cost moat to its
maximum advantage. It has also displayed how plain vanilla banking can be a safe,
profitable and a value creating business model. Today, even the largest and century
old banks in India are no match for the barely two and half decade old bank.
9 | HDFC Bank
The bank has grown its revenues and profits at a compounded annual growth rate
(CAGR) of 29.4% and 30.8% respectively over the last ten years. The bank has been
able to sustain above average return on equity as well as dividend payout closer to
19% over the past 10 years, thus immensely rewarded its long term shareholders.
Valuation
margin of safety according to us. The stock of HDFC Bank is currently trading at a
marginal discount to its intrinsic value. In view of the company’s strong execution
track record and business tail winds, we recommend that one could consider buying
the stock for the ValuePro Group Two.
HDFC Bank | 10
Annexure for HDFC Bank:
Category (%)
Promoters 21.3
FIIs 39.4
Public 10.5
Others 17.4
Total 100.0
Market Data
Price as on 29th December, 2016 (Rs) 1,201
52 week H/L (Rs) 1318 / 928
NSE symbol HDFCBANK
BSE code 500180

No. of shares (m) 2,545.7
Face value (Rs) 2.0
Free float (%) 78.7
Market cap (Rs m) 3,058,471

1,501
bined)

11 | HDFC Bank

Interest Income (Rs m) 276,054 358,609 425,550 484,697 602,214
Advances growth (%) 23.6% 24.3% 27.6% 15.9% 27.1%

Net Interest Margin (%) 4.1% 4.4% 4.4% 4.4% 4.3%
Net profit (Rs m) 52,734 69,002 87,646 102,159 122,962

Adj. book value per share (Rs) 125.3 151.9 170.8 241.4 284.4
Cost to Income Ratio (%) 49.1% 49.6% 45.5% 44.6% 44.3%
Return on equity (%) 18.9% 20.6% 21.7% 19.2% 18.3%
Return on assets (%) 1.7% 1.8% 1.9% 1.9% 1.9%
Net NPA to advances (%) 0.2% 0.2% 0.3% 0.3% 0.3%
Dividend payout (%) 19.2% 19.1% 18.8% 19.6% 19.5%
Source: Company, Ace Equity, Equitymaster
HDFC Bank | 12
Stock # 3
Tata Consultancy Services
Group One
Background
Founded in 1968, TCS is the largest software services company in India, ahead of
other Indian software service providers like Infosys and Wipro. The company provides
a wide range of services and caters to industries such as banking, insurance and
financial services, telecom, retail and manufacturing. TCS was one of the pioneers of
the much-acclaimed global delivery model and the same has helped it to post good
results in the past.
The firm is ably run by Mr N Chandrasekaran who has made the company reach even
greater heights. The company is one of the most respected employers in the India,
and employs more than 3 lakh professionals, which highlights the fact that it has
managed to build significant scale in its business. TCS is also known to maintain long
term relationship with most of its clients. As a result, the company enjoys a major
chunk of its revenues from repeat businesses.
TCS enjoys the most stable and sustainable moat that Warren Buffett strongly advo-
cates. And that moat is the ability to generate large amount of cash for maximization
of shareholder wealth. TCS has grown its revenues and profits at a compounded an-
nual growth rate (CAGR) of 23.6% and 23.3% respectively over the last ten years. Over
this time, the free cash flow (FCF) has grown at a rate of 25.9%. has required minimal
or almost no debt to fund its growth. TCS has also paid out steadily increasing divi-
dends over the years.
13 | TCS
The sustainability of the moat stems from the fact that the company has been slowly
moving up the value chain. The company has increased the share of revenues from
digital technologies (this is where the pricing power exists) from negligible to over
15.0% in a short span of time. Even better, revenues from these digital services are
growing at more than twice the company's growth rate. Therefore, TCS has success-
fully transitioned in these crucial services to retain existing client base. The company
has also stepped up hiring to service the large orders it has on hand.
Valuation
margin of safety according to us. The stock of TCS is currently trading at almost 42%
discount to its intrinsic value. In view of the company’s strong cash generation poten-
tial, we recommend that one could consider buying the stock for the ValuePro Group
One.
TCS | 14
Annexure for TCS:
Category (%)
Promoters 73.3
FIIs 17.0
Public 4.0
Others 0.5
Total 100.0
Market Data
52 week H/L (Rs) 2,740 / 2,054
NSE symbol TCS
BSE code 532540

No. of shares (m) 1,970.4
Face value (Rs) 1.0
Free float (%) 26.7
Market cap (Rs m) 4,631,918

1,187
bined)

15 | TCS

Sales (Rs m) 488,938 629,895 818,094 946,484 1,086,462
Sales growth (%) 31.0% 28.8% 29.9% 15.7% 14.8%
Operating profit margin (%) 30.4% 30.5% 32.8% 29.3% 31.0%

Net profit (Rs m) 104,135 139,173 191,639 198,522 242,918

Return on equity (%) 39.1% 41.4% 44.1% 40.2% 42.0%

51.4% 52.9% 57.6% 52.6% 54.4%
(%)
Dividend payout (%) 47.1% 31.0% 32.7% 77.9% 35.3%
TCS | 16
Stock # 4
Shriram Transport Finance Co. Ltd.
Group Two
Background
Shriram Transport Finance Company Ltd (STFCL) is the country's largest asset financing
NBFC present in both new and pre-owned commercial vehicles. The company is a
pioneer in financing the high-yielding pre-owned CV segment for Small Truck Owners
and has expertise in loan origination, valuation and collection. The company has a
20-25% market share in pre-owned truck financing and around 7-8% market share in
new truck financing.
STFCL has expanded its loan portfolio to include pre-owned and new commercial and
passenger vehicles, tractors, three wheelers, multi-utility vehicles and construction
equipment. Apart from this, the company extends finance for tyres, engine
replacement and working capital. STFCL also provides ancillary services such as
freight bill discounting and co-branded credit cards. The company has a pan-India
presence with 899 branches and 906 rural centres as well as tie-up with over 500
private financers catering to 1.4 m customers (a huge chunk of the country's truck
owners).
Pre-owned commercial vehicles segment has been the flagship segment of the
company over the past three decades. The commercial vehicle financing market
size is estimated to be Rs 2.2 trillion comprising of 8 million vehicles. STFCL targets
the 5-12-year-old truck segment that accounts for a major part of the overall truck
industry with a 47% share (value terms) and 46% share (volume terms).
The pre-owned truck financing market is largely unorganized and under penetrated
with 65-70% of the market dominated by private financiers that charge exorbitant
17 | Shiram Transport Finance Co. Ltd.

interest rates. Apart from this, demand drivers such as strict regulation preventing
movement of high tonnage vehicles in cities and stringent emission norms on old
vehicles fueling replacement demand provide huge potential for growth.
STFCL is armed with a strong and durable moat that shields it from the vagaries of
economic cycles. The company’s core business continues to grow even during an eco-
nomic downturn. While new commercial vehicle purchases stagnate during a down
cycle, the small truckers resort to buying more used vehicles instead of new ones to
meet their requirement. And this benefits STFCL that focuses on entrepreneurs and
driver-turned owners who are under-banked and have no access to affordable funds.
Moreover, heavy commercial vehicles offer multiple financing opportunities as it gen-
erally changes ownership four times in its life cycle. It starts off on the long haul
national highways, moves down to inter-state by the fifth year, further on to less
than 350 km intercity routes and finally goes on to last mile or local uses like garbage
trucks after 12 years. These changes of ownership create multiple financing options
with STFCL specialising in interstate and intercity transport segments.
STFCL’s reach and flexibility in financing pre-owned trucks up to 12 years of age

makes it the leading player in this segment. And since 90% of its loan book is concen-
trated in the used truck financing segment (with 25% market share), STFCL emerges
as an all-weather stock. Being a business model with formidable entry barriers, the
company has hardly met any competition in the used truck financing space over the
last 3 decades.
Valuation
margin of safety according to us. At a 2.2 times price to adjusted book value multiple,
the stock of STFCL is currently trading at almost 17% discount to its intrinsic value.
The company’s valuations have been hit on account of ban on over 10-year-old vehi-
cles in some parts of the country, cash shortage from demonetisation as well as slide
in asset quality. However, we believe that STFCL is adequately safeguarded against
all these headwinds.
Shiram Transport Finance Co. Ltd. | 18

The NBFC has made a conscious decision to stop financing over 10-year old CV ve-
hicles in the aftermath of National Green Tribunal's call for ban on diesel vehicles of
over 2000 cc in the National Capital Region. The share of over 10-year-old vehicles
remains miniscule at 6% of the overall AUM. Moreover, STFC is increasingly focusing
on younger CVs (4 - 6 years old) that are witnessing incremental demand as a result
of Bharat IV norms. STFCL’s bad loans ratio has surged to 6.6% as on 30th September
2016 on account of bad loans of the merged subsidiary and shift towards stringent
provisioning norms. However, likely reduction in provision coverage ratio will provide
some degree of protection to earnings.
In view of its strong network and well established lending business model in the used
CV segment, we recommend that one could consider buying the stock for the Value-
Pro Group Two.

Annexure for Shiram Transport Finance Co. Ltd.:
Category (%)
Promoters 26.1
FIIs 60.7
Public 6.2
Others 4.1
Total 100.0
Market Data
Price as on 29th December, 2016 (Rs) 832
52 week H/L (Rs) 1325 / 736
NSE symbol SRTRANSFIN
BSE code 511218

Face value (Rs) 10.0
Free float (%) 74.0

715
bined)

Shiram Transport Finance Co. Ltd. | 20


Interest Income (Rs m) 37,594 47,777 64,834 78,111 93,382

Advances growth (%) 12.3% 35.6% 12.8% 12.0% 14.0%
Net Interest Margin (%) 7.5% 7.4% 6.7% 7.2% 8.0%
Net profit (Rs m) 13,088 14,639 13,579 10,284 11,836

Adj. book value per share (Rs) 262.3 312.8 361.7 391.6 398.0
Cost to Income Ratio (%) 24.6% 22.8% 24.8% 26.6% 26.1%
Return on equity (%) 24.0% 21.9% 17.1% 11.6% 12.2%
Return on assets (%) 3.8% 3.5% 2.7% 1.8% 1.8%
Net NPA to advances (%) 0.4% 0.6% 0.8% 0.7% 1.8%
Dividend payout (%) 11.2% 10.9% 11.7% 22.1% 19.2%

Stock # 5
Bajaj Auto
Group One
Background
Bajaj Auto is a leading player in motorcycles and three wheelers in India. The company's
sales mix (in terms of units sold) consists of motorcycles (86%) and three-wheelers
(14%). Exports account for around 45% of volumes and 44% in value terms. It has also
entered into an agreement with KTM for export of motorcycles for emerging markets.
Bajaj Auto is the largest exporter of motorcycles and three wheelers. The company
exports to 78 countries and enjoys dominant position in more than a quarter of them.
In motorcycles, Bajaj Auto is a market leader in the value added sports and super-
sports segments with market shares of 49% and 60%, respectively. Even in the
entry or utility segment of motorcycles, the company has succeeded in building a
dominant position with a 35% market share though differentiated offerings. In the
three wheeler segment, Bajaj Auto is the world’s largest manufacturer accounting for
more than 55% of sales.
Bajaj Auto has consciously decided to stay away from the scooter segment and focus
entirely on becoming a global player in the motorcycle segment. As a result, the
company today has a formidable presence in the premium motorcycle segments
where it enjoys a leadership position. Brands such as Pulsar, Avenger and KTM have
cemented the company’s dominant position in the higher end sports and super
sports segments in the domestic markets and acted as big draw in the international
markets. In the entry level motorcycle segment, the company, through a combination
of pricing and aggressive marketing, has created a niche proposition for Platina.
Bajaj Auto | 22
With a strong presence across all price points in the motorcycle segment and
leadership position in the three wheelers, Bajaj Auto’s sales have grown at an
average rate of 14% in the past eight years. Profits, on an average, have grown at
a much faster pace of 28% during this period. The company's strategy is to not run
after market share, but to focus on providing customers with the best performance
bikes (in their respective ranges) without compromising on quality. This strategy has
paid off rich dividends with the company’s operating margins being the highest in
the industry. Moreover, profitable operations coupled with low capital intensity on
a strong vendor base have led to huge generation of cash flows keeping debt levels
almost negligible. Therefore, the company is armed with a strong moat and provides
superlative shareholder’s returns even during recessionary times.
Valuation
margin of safety according to us. At current price levels, Bajaj Auto’s stock is trading at
a discount of 21% to its intrinsic value. Going ahead, the company’s growth potential
remains bright from a pick-up in the demand for premium motorcycles as also strong
growth prospects from the international markets. We recommend that one could
consider buying the stock for the ValuePro Group One.
23 | Bajaj Auto
Annexure for Bajaj Auto:
Category (%)
Promoters 49.3
FIIs 17.8
Public 16.0
Others 8.8
Total 100.0
Market Data
52 week H/L (Rs) 3122 / 2173
NSE symbol BAJAJ-AUTO
BSE code 532977

Face value (Rs) 10.0
Free float (%) 50.7

286
bined)

Bajaj Auto | 24

Sales (Rs m) 195,947 200,420 201,583 216,143 226,876
Sales growth (%) 19.3% 2.3% 0.6% 7.2% 5.0%
Operating profit margin 22.0% 22.2% 24.0% 21.7% 24.5%
Net profit (Rs m) 30,486 31,441 34,120 30,256 37,840
Return on equity (%) 55.0% 43.3% 35.8% 26.5% 29.5%

70.9% 59.4% 50.6% 38.2% 43.4%
(%)
Dividend payout (%) 42.7% 41.4% 42.4% 47.8% 42.1%
25 | Bajaj Auto
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aa 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in

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26 | DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014

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5 Stocks Buffet

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5 Stocks Buffet

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5 BUFFETT

The efficacy of demonetisation of high value notes is a subject of intense debate.

Warren Buffett thrives in this environment. Not because he is a sadist. It is because

Why it fits the Warren Buffett philosophy?

Banks, Fis and MFs 15.2

Price as on 29th December, 2016 (Rs) 109

52 week H/L (Rs) 115 / 76

NSE symbol NAVNETEDUL

BSE code 508989

Face value (Rs) 2.0

FY16 dividend/share (Rs) 2.2

Free float (%) 38.2

Market cap (Rs m) 26,025

Price to earnings * (times) 17.2

Dividend Yield (%) 2.0

Price to book value * (times) 4.5

(Rs m) FY12 FY13 FY14 FY15 FY16

Sales growth (%) 12.9% 29.9% 9.5% 10.9% -3.2%

Net profit (Rs m) 780 1,067 1,152 1,303 1,034

Key qualitative ratios

Return on equity (%) 22.7% 27.8% 25.7% 25.5% 22.1%

Why it fits the Warren Buffett philosophy?

Banks, Fis and MFs 11.4

Price as on 29th December, 2016 (Rs) 1,201

52 week H/L (Rs) 1318 / 928

NSE symbol HDFCBANK

BSE code 500180

Face value (Rs) 2.0

FY16 dividend/share (Rs) 9.5

Free float (%) 78.7

Market cap (Rs m) 3,058,471

Price to earnings * (times) 22.8

Dividend Yield (%) 0.8

Price to book value * (times) 4.2

(Rs m) FY12 FY13 FY14 FY15 FY16

Advances growth (%) 23.6% 24.3% 27.6% 15.9% 27.1%

Net profit margin (%) 19.1% 19.2% 20.6% 21.1% 20.4%

Key qualitative ratios

Return on assets (%) 1.7% 1.8% 1.9% 1.9% 1.9%

Net NPA to advances (%) 0.2% 0.2% 0.3% 0.3% 0.3%

Dividend payout (%) 19.2% 19.1% 18.8% 19.6% 19.5%

Source: Company, Ace Equity, Equitymaster

Why it fits the Warren Buffett philosophy?

Banks, Fis and MFs 5.1

Price as on 29th December, 2016 (Rs) 2,351

52 week H/L (Rs) 2,740 / 2,054

NSE symbol TCS

BSE code 532540

Face value (Rs) 1.0

FY16 dividend/share (Rs) 43.5

Free float (%) 26.7

Market cap (Rs m) 4,631,918

Price to earnings * (times) 18.2

Dividend Yield (%) 1.9

Price to book value * (times) 6.1

(Rs m) FY12 FY13 FY14 FY15 FY16

Sales (Rs m) 488,938 629,895 818,094 946,484 1,086,462

Sales growth (%) 31.0% 28.8% 29.9% 15.7% 14.8%

Operating profit margin (%) 30.4% 30.5% 32.8% 29.3% 31.0%

Key qualitative ratios

Return on equity (%) 39.1% 41.4% 44.1% 40.2% 42.0%

17 | Shiram Transport Finance Co. Ltd.

Why it fits the Warren Buffett philosophy?

STFCL’s reach and flexibility in financing pre-owned trucks up to 12 years of age