The current market price of Shriram Transport Finance Company Ltd. is Rs 1380.8 Time period given by analyst is one year when Shriram Transport Finance Company Ltd. price can reach defined target.
Shriram Transport Finance Company Ltd., incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 37144.55 Crore) operating in NBFC sector.
Shriram Transport Finance Company Ltd. key Products/Revenue Segments include Interest, Fees & Commission Income, Other Operating Revenue, Income From Financial Services, Income From Sale Of Share & Securities and Rental Income for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 4702.81 Crore, up 1.10 % from last quarter Total Income of Rs 4651.50 Crore and up 8.08 % from last year same quarter Total Income of Rs 4351.26 Crore. Company reported net profit after tax of Rs 771.24 Crore in latest quarter.
Investment Rationale
Shriram Group announced the long-awaited re-jig of its group structure; while the non-lending subsidiaries (general insurance and life insurance) would be placed outside the merged entity, Shriram City Union Finance (SCUF) and Shriram Capital are slated to be folded into Shriram Transport (SHTF) to form Shriram Finance (the proposed merged entity). At yesterday’s closing price, the share-swap ratio indicates a favourable ratio for SCUF. While the re-jig was inevitable, the brokerage believes the proposed merger is unlikely to generate meaningful revenue or opex benefits, and the super-app strategy entails significant execution risk. Despite the high likelihood of regulatory clearance, the forecasts for FY22-FY23 remain unchanged. It maintains ADD with an unchanged target price of INR1,552.
Promoter/FII Holdings
Promoters held 25.58 per cent stake in the company as of 30-Sep-2021, while FIIs owned 53.67 per cent, DIIs 14.82 per cent.
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