Shriram Transport Finance - Used CV finance drives growth - Kotak

Shriram Transport Finance (STFC) reported PAT of Rs3.37 bn, up 13% yoy, 2% below estimates. Used CV disbursements increased 33% yoy, thereby driving 21% loan growth in used CV loans and 16% growth in aggregate loans under management. NIM (calculated) moved up 30 bps to 8.1%. We believe that the business has stabilized from a downward trajectory in FY2012.

We, however, await some further signals to get more assertive on the stock. Tweak estimates, retain target price of Rs700. ADD.

Source : Equity Bulls

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