SHARDUL SECURITIE 2023-24 Annual Report Analysis

Tue, 24 Sep

SHARDUL SECURITIE has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during the year 2023-24.

SHARDUL SECURITIE Income Statement Analysis

• Interest income during the year rose 2512.0% on a year-on-year (YoY) basis.
• Interest expenses were up by 2256.3% YoY during the same period.
• Operating expenses increased by 200.2% YoY during the year.
• The company's net interest income (NII) increased by 2512.6% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 26.5% in FY24 as against 1.5% in FY23.
• Other income increased by 3522.7% YoY during the year.
• Net profit for the year increased by 4331.8% YoY.
• Net profit margins during the year increased to 56.6% in FY24 from 33.3% in FY23.

SHARDUL SECURITIE Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	66	1,729	2512.0%
Other Income	Rs m	0	8	3522.7%
Interest Expense	Rs m	0	4	2256.3%
Net Interest Income	Rs m	66	1,725	2512.6%
Operating Expense	Rs m	34	102	200.2%
Pre-provision Operating Profit	Rs m	32	1,631	4950.7%
Provisions & Contingencies	Rs m	3	32	830.6%
Profit before tax	Rs m	29	1,627	5588.4%
Tax	Rs m	7	649	9828.7%
Profit after tax	Rs m	22	978	4331.8%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	1.5	26.5
Net profit margin	%	33.3	56.6

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SHARDUL SECURITIE Balance Sheet Analysis

• The company's deposits during FY24 stood at Rs 0 m as compared to Rs 0 m in FY23, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 0 m as compared to Rs 0 m during FY23, a rise of 0.0%.
• Cost of deposits for SHARDUL SECURITIE rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments rose to Rs 6.5 bn during the year from Rs 4.3 bn in FY23.
• Borrowing stood at Rs 0 m, a growth of 0.0% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 7.0 bn as against Rs 4.7 bn during FY23, thereby witnessing a rise of 48.0%.

SHARDUL SECURITIE Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,457	6,712	50.6%
Advances	Rs m	0	0	0.0%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	0.0	0.0
Investments	Rs m	4,340	6,509	50.0%
Borrowings	Rs m	0	0	0.0%
Total Assets	Rs m	4,708	6,967	48.0%

Current Valuations for SHARDUL SECURITIE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 55.9, an improvement from the EPS of Rs 1.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 406.4, stands at 3.1 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.1 times, while the price to income ratio stands at 1.7 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	3.8	98.8
Earnings per share (Unadj.)	Rs	1.3	55.9
Diluted earnings per share	Rs	1.3	55.9
Avg P/E ratio	Rs	79.7	3.1
Avg P/ABV ratio	Rs	0.4	1.1
Avg Market Cap	Rs	1,759	3,023
Dividends per share (Unadj.)	Rs	0.00	0.00

Ratio Analysis for SHARDUL SECURITIE

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 0.0x during FY24, from 0.0x during FY23. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio increased and stood at 0.00x during FY24, from 0.00x during FY23. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): SHARDUL SECURITIE's capital adequacy ratio (CAR) was at 0.0% as on 31 March 2024 as compared to 0.0% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company improved and stood at 14.6% during FY24, from 0.5% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at 14.04% during FY24, from 0.47% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 28.95% during FY24, from 0.62% during FY23. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. SHARDUL SECURITIE's gross NPA ratio stood at 0.0% as of 31 March 2024 compared to 0.0% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of SHARDUL SECURITIE was 0.0% in financial year 2024. This compared with 0.0% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Credit/Deposit Ratio	x	0.0	0.0
Debt to Equity Ratio	x	0.0	0.0
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	0.0	0.0
Return on Equity	%	0.5	14.6
Return on Assets	%	0.5	14.0
Return on Capital Employed	%	0.6	29.0
% of Gross NPAs	%	0.0	0.0
% of Net NPAs	%	0.0	0.0
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

To see how SHARDUL SECURITIE has performed over the last 5 years, please visit here.

SHARDUL SECURITIE Share Price Performance

Over the last one year, SHARDUL SECURITIE share price has moved up from Rs 102.0 to Rs 406.4, registering a gain of Rs 304.4 or around 298.4%.

Overall, the S&P BSE SENSEX is up 27.3% over the year.

(To know more, you can check out historical annual results for SHARDUL SECURITIE here and quarterly results for SHARDUL SECURITIE here)