Shriram Transport Finance share price: Buy Shriram Transport Finance Company, target price Rs 1580: Emkay Global

Emkay Global has buy call on Shriram Transport Finance Company with a target price of Rs 1580. The current market price of Shriram Transport Finance Company is Rs 1274.7. 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 33574.20 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 31-12-2021, the company reported a Consolidated Total Income of Rs 4832.33 Crore, up 2.75 % from last quarter Total Income of Rs 4702.81 Crore and up 8.76 % from last year same quarter Total Income of Rs 4443.12 Crore. Company reported net profit after tax of Rs 680.62 Crore in latest quarter.

Rational Investment
The brokerage retains Buy rating on SHTF with a Mar’23 TP of Rs1,580, using the excess return on equity (ERE) method for FY23E-24E RoE of ~14%, implying 1.3x Mar’24E BVPS. Key downside risks: merger integration risk; overhang of stake sales by current investors.


Promoter/FII Holdings
Promoters held 26.06 per cent stake in the company as of 31-Dec-2021, while FIIs owned 53.15 per cent, DIIs 15.19 per cent.

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