Business Details
Shriram Asset Management Company Limited is a part of the Shriram conglomerate of Chennai (Shriram Group). Shriram Group has significant presence in financial services such as commercial vehicle, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products.
Shriram Credit Company Limited (SCCL) which is holding 68.67% stake in Shriram Asset Management Company Limited (SAMC) is the present Sponsor of SAMC. SCCL, a Non Deposit Taking Non Banking Financial Company registered under RBI Act 1934, is the wholly owned subsidiary of Shriram Capital Limited.
Shriram Asset Management Company has significant presence in South India. The Group has other companies listed on exchanges which have performed well for investors over the years.
Stock Performance
Above is long term price performance chart of the Company. If you see absolute performance of the stock then it has given close to twenty times return in last fifteen years. Majority of price action have taken place after year 2017.
In recent correction due to Corona outbreak the Company has corrected from 200 odd levels to 70 levels. Even after correction if someone has invested before 2017 then he or she has made money in the counter.
My Opinion
Shriram Asset Management Company is backed by a reputed management group. So one does not have to worry about management pedigree of this stock. Shriram Group is financial behemoth which has performed well for investors.
Other listed companies of this group have given good returns to investors. The Company has grown in financial services and have good presence in south India.
The Asset management Company was founded in year 1994. Looking at management pedigree and how well they have transformed other business and succeeded in it one can be rest assured from corporate governance point of view.
I would like to track this Company as it is small in size and Asset Management is still very under penetrated in India. So if Company grows then it will be very profitable for investors as well.
I have also invested in this sector. But is planning to track this Company as well.