Buy Shriram Transport Finance, target price Rs 1525: Motilal Oswal

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Buy Shriram Transport Finance, target price Rs 1525:  Motilal Oswal


Motilal Oswal has buy call on Company Ltd. with a target price of Rs 1525. The current market price of Shriram Transport Finance Company Ltd. is Rs 1374.3.

Shriram Transport Finance Company Ltd., incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 35308.41 Crore) operating in NBFC sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 4438.37 Crore, up 2.08 % from last quarter Sales of Rs 4347.75 Crore and up 3.55 % from last year same quarter Sales of Rs 4286.04 Crore Company reported net profit after tax of Rs 727.72 Crore in latest quarter.

Investment Rationale
On the asset quality front, SHTF has done a good job of reducing its GNPL ratio over the past the past year. The brokerage upgrades FY22E/FY23E EPS estimates by ~7%/~5% on the back of better loan book growth and lower opex.


Promoter/FII Holdings
Promoters held 26.5 per cent stake in the company as of Dec 30, 2020, while FIIs held 61.7 per cent, DIIs 5.4 per cent and public and other 6.4 per cent.





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