HDFC Securities is bullish on Shriram City Union Finance has recommended buy rating on the stock with a target price of Rs 2527 in its research report dated April 28, 2018.
Broker Research
HDFC Securities' research report on Shriram City Union Finance
SCUFs 4Q results were bogged down by the shift to 90DPD. Higher provisions (2x sequentially) led to a significant miss on net earnings (~Rs 470mn vs. an estimate of ~Rs 1.6bn). Opex also jumped (~15% YoY) primarily driven by higher staff costs (32% YoY) as SCUF built up higher bench strength.
Outlook
We believe growth revival is a given. Dip in provisions and a tight leash on costs will boost return ratios 49bps over FY18-20E. Maintain BUY with TP of Rs 2,527 (2.5x Mar-20E ABV of Rs 1,011).For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.