The current market price of Shriram Transport Finance Company is Rs 1,229. The time period given by the analyst is the year in which the price of Shriram Transport Finance Company can reach the set target.
Shriram Transport Finance Company, incorporated in 1979, is a large capitalization company (having a market capitalization of Rs 33,273.92 crore) operating in the NBFC sector.
Major revenue products/segments of Shriram Transport Finance Company include interest, fee and commission income, other operating income, financial services income, income from sale of shares and securities and rental income for the year ending March 31, 2021.
For the quarter ended 31-03-2022, the company reported a consolidated total revenue of Rs 5087.59 Crore, up 5.28% from last quarter. Total revenue of Rs 4832.33 Crore and up by 13.11% compared to the same quarter last year. Total income of Rs 4497.87 Crore. . The company reported a net profit after tax of Rs 1086.13 Crore in the last quarter.
Investment rationaleShriram Transport posted a fourth-quarter profit of 10.9 billion rupees, 32% above the brokerage’s estimate of 8.2 billion rupees and 19% above consensus. The operating profit is 6% higher than our estimate due to an interest recovery of 1.06 billion rupees (1% better than our figures excluding exceptional items). Used vehicle assets under management increased 70 basis points as outflows of new vehicles increased in the fourth quarter. NIMs improved thanks to the repricing of long-term debt and higher interest reversals. Lower credit costs (management recovery provision of Rs8 billion consumed in the fourth quarter) and Rs 0.82 billion in tax write-offs also boosted profits. The proposed merger with Shriram City (SCUF) is on track and has been approved by BSE and NSE. For FY23, SHTF guided 12% growth in YoYstandalone and 15% growth for the merged entity.
The promoters held 26.45% of the company’s capital as of March 31, 2022, while the FIIs held 53.88% and the DIIs 14.0%.
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