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Assignement-3: Shriram
By: GROUP 15
Transport Finance Chaitanya Kumar-048
Kajol Kumari-080
Kumar Saharsh-091
Priyanka Kumari-145
Sidra Jalal-195
Q1.a) What makes the Shriram group of companies an attractive target
for investment?
• Diversified business ranging from financials like stockbroking, insurance products, MFs to
non-financial service such as IT and from musical instruments to stem cells.
• Coupling mathematical background with the business resulting in ease of decision
making.
• Life long customer relationships
• Monopoly in transport finance sector
• Fulfilling the motive of CSR by enhancing the lives of truck owners.
Q1.b) What factors did TPG consider when targeting STFC for investing?
• With market cap of $115 million, asset base of $1.15 billion and net profit of $11.5 million
STFC held a strong market position for investment.
• Transport sector company on the booming side making transport finance sector attractive.
Q2.a) What would be a suitable exit valuation? Which valuation method is best
suited for the given case?