Shriram Transport Finance - Q2FY21 Results - Angel Broking

Mr. Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd

Shriram Transport Finance (STFC) reported a moderate set of Numbers for Q2FY21. AUM grew at 4.8% YoY and 1.4% QoQ led by 8% growth in used vehicles. PAT declined by 10.5% YoY due to 2% growth NII and other income declined 53%.Asset quality improved as GNPA/ NNPA ratio declined to 6.4%/ 3.6% from 8.0%/ 5.1% in Q1. Management expects AUM to grow at 5-6% in FY21 and for the next two-quarters disbursement would reach pre covid level of Rs. 12000-13000cr. Management guided credit cost of less than 2.8% compared to earlier guidance of 3%. currently Shriram transport trading at 0.7x of FY22 Adj Book value, which is lower compared to historical valuation, however, an investor would wait for the final restructuring number and slippages from the moratorium book in Q3FY21.

Shares of SHRIRAM TRANSPORT FINANCE CO.LTD. was last trading in BSE at Rs.689.7 as compared to the previous close of Rs. 698.75. The total number of shares traded during the day was 266053 in over 10440 trades.

The stock hit an intraday high of Rs. 730 and intraday low of 669.85. The net turnover during the day was Rs. 184761792.

Source : Equity Bulls

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