Buy Shriram Transport Finance, target price Rs 1680: Emkay Global

Emkay Global has buy call on with a target price of Rs 1680. The current market price of Shriram Transport Finance is Rs 1477.75. Time period given by analyst is one year when Shriram Transport Finance 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 37455.63 Crore) operating in NBFC sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 4497.87 Crore, up 1.23 % from last quarter Total Income of Rs 4443.12 Crore and up 7.78 % from last year same quarter Total Income of Rs 4173.04 Crore. Company reported net profit after tax of Rs 754.93 Crore in latest quarter.
Investment Rationale
The brokerage's preference for SHTF in these uncertain times is underpinned by its unique customer base with a moat, along with strong underlying demand for used vehicles during current slowdow. It is not incorporating the current issuance to estimates as it has only nominal impact on growth and profitability. It will wait for more clarity over further capital raise.

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.

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