The Discounted Cash Flow (DCF) valuation of Shriram City Union Finance Ltd (SHRIRAMCIT.NS) is 391.25 INR. With the latest stock price at 2,210.40 INR, the upside of Shriram City Union Finance Ltd based on DCF is -82.3%.

Is SHRIRAMCIT.NS a buy or a sell?

Based on the latest price of 2,210.40 INR and our DCF valuation, Shriram City Union Finance Ltd (SHRIRAMCIT.NS) is a sell. Selling SHRIRAMCIT.NS stocks now will result in a potential gain of 82.3%.

	Range	Selected
WACC / Discount Rate	6.3% - 9.7%	8.0%
Long-term Growth Rate	3.0% - 5.0%	4.0%
Fair Price	(1,116.32) - 7,999.37	391.25
Upside	-150.5% - 261.9%	-82.3%

2,210.40 INR

Stock Price

391.25 INR

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

SHRIRAMCIT.NS DCF Valuation: Revenue & Expenses Forecast

(INR in millions)		Projections

	03-2022	03-2023	03-2024	03-2025	03-2026	03-2027

Revenue	70,730	44,282	51,502	53,792	54,867	56,408
% Growth	15%	-37%	16%	4%	2%	3%

Cost of goods sold	(29,245)	(17,394)	(19,219)	(19,069)	(18,478)	(18,047)
% of Revenue	41%	39%	37%	35%	34%	32%

Selling, G&A expenses	(24,203)	(15,153)	(17,623)	(18,407)	(18,775)	(19,302)
% of Revenue	34%	34%	34%	34%	34%	34%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(1,596)	(999)	(1,162)	(1,214)	(1,238)	(1,273)
% of Revenue	2%	2%	2%	2%	2%	2%

Tax expense	(4,039)	(2,908)	(3,656)	(4,090)	(4,435)	(4,817)
Tax rate	26%	27%	27%	27%	27%	27%

Net profit	11,647	7,828	9,842	11,012	11,941	12,969
% Margin	16%	18%	19%	20%	22%	23%