Buy Shriram Transport Finance, target price Rs 830: IIFL

IIFL has given a buy rating to Shriram Transport Finance with a target price of Rs 830. The share price moved down by 0.44 per cent from its previous close of Rs 788.95. The stock’s last traded price is Rs 785.50.

Shriram Transport Finance Company Ltd., incorporated in the year 1979, is a Large Cap company (having a market cap of Rs 20082.96 Crore) operating in NBFC sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 4347.75 Crore, up 5.00 % from last quarter Sales of Rs 4140.91 Crore and up 3.09 % from last year same quarter Sales of Rs 4217.54 Crore Company reported net profit after tax of Rs 684.56 Crore in latest quarter.

Investment Rationale
Stock has given a channel pattern breakout above its 200 DEMA on the daily chart.

Promoter/FII Holdings
Promoters held 26.5 per cent stake in the company as of Sept 30, 2020, while FIIs held 60.5 per cent, DIIs 4.4 per cent and public and others 8.6 per cent.