Buy Shriram City Union; target Rs 536: Firstcall Research

643 Investors following Shriram City. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy Shriram City Union; target Rs 536: Firstcall Research

Firstcall Research is bullish on Shriram City Union Finance and has recommended buy rating on the stock with a target price of Rs 536 in its December 22, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Sell Tata Steel January future; target Rs 330: IIFL Hindustan Unilever - Waking up after a long sleep! Buy HDIL; target Rs 62.50: IIFL ALSO READ See previous views by Firstcall Research See what other Experts & Brokerages are saying about Shriram City See messages about Shriram City Shriram City BSE | NSE 31/05/12 Are Mutual Funds betting on Shriram City?

Firstcall Research is bullish on Shriram City Union Finance and has recommended buy rating on the stock with a target price of Rs 536 in its December 22, 2011 research report.

"Shriram City Union Finance is a major organized lender in the Retail and Micro & small enterprises credit space with leading market share in the southern region. During the quarter ended, the robust growth of revenue is increased by 61.28% Rs.4764.00 million. Net Sales and PAT of the company are expected to grow at a CAGR of 28% and 29% over 2010 to 2013E respectively. Shriram City Union Finance Ltd has declared an Interim Dividend of Re. 2.5 (i.e. 25%) per equity share. Large customer base of 3.55 million and growing everyday."

"The company has reported a rise of 61.28% sales in the net sales for the quarter ended Sept 2011. During the quarter, the company disclosed a net profit of Rs. 810.60 million from Rs.555.80 million same quarter last year. Net sales are increased by 61.28% to Rs. 4764.00 million. In the same period, total income of the company was at Rs. 4788.80 million, a rise of 62.05% over the prior year period. Company EPS is stood at Rs.16.30 for the quarter ended Sept 2011."

"At the current market price of Rs.474.50, the stock is trading at 6.45 x FY12E and 5.72 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.73.54 and Rs.82.97 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 28% and 29% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 1.64 x for FY12E and 1.39 x for FY13E. Price to Book Value of the stock is expected to be at 1.49 x and 1.18 x respectively for FY12E and FY13E. We expect that the company will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 536 for Medium to Long term investment," says Firstcall Research report.

FIIs holding more than 30% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment