Shriram Transport Finance - March 2013 Results Preview - Motilal Oswal

- SHTF's asset growth moderated in FY12. However, some pick-up was witnessed since last two quarters. We expect AUMs to grow ~21% YoY and ~4.4% QoQ.

- Sequentially, disbursements may see some decline as they grew sharply by 13.4%/42% QoQ/YoY in 3QFY13. We model a 10% QoQ decline in AUMs at INR63.1b.

- Margins expected to remain stable sequentially. Hence, NII (incl. securitization income) should grow 4% QoQ.

- Given the uncertain macro environment and slowdown in CV sales, asset quality continues to be a key item to monitor.

- Securitization pace likely to be increased. We expect PAT to grow ~19% YoY and 6% QoQ.

- The stock trades at 1.8x FY14E and 1.5x FY15E BV. Maintain Buy.

Source : Equity Bulls

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