Accumulate Shriram Transport Finance Company; target of Rs 1475: CD Equisearch
CD Equisearch’s research report on Shriram Transport Finance Company
Uptick in M&HCV sales augmented AUM growth 85462.57 crs / $ 13076.5 m in Q2FY18 from Rs 81611.95 crs / $ 12606.5m). Share of new vehicle financing increased a from 9.9% in Q1FY18, while its core business declined marginally by 47 bps to 86.6% of its total AUM to Rs 74013.90 crs ($ 11324.9 m) which resulted in fall in margins 7.8% a quarter before.
On balance, we recommend ‘accumulate’ rating on the stock with a target price of Rs 1475 (previous target Rs 1096) based on 2.4x FY19e BV for a period of 6-9 months.
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