Shiram City falls 1% after even as Q2 profit rises 6%; Axis Cap maintains buy call
Total income of the company increased to Rs 1,515.81 crore during the quarter
October 26, 2018 / 10:05 AM IST
Shares of Shriram City fell over a percent on Friday as investors reacted to its September quarter results.
The company reported a marginal 6.1 percent rise in the net profit to Rs 249.27 crore in the second quarter ended September 30, 2018.
The company's net profit stood at Rs 234.89 crore in the corresponding quarter of the previous fiscal. Total income of the company increased to Rs 1,515.81 crore during the quarter, as against Rs 1,290.30 crore in the same period a year earlier, Shriram City Union Finance said in a filing to stock exchanges.
Brokerage house Axis Capital has maintained its buy call on the stock with a target at Rs 2,000. It said that the guidance for loan growth remains at 18-20 percent.
Further, the company is focusing on MSME and two-wheeler financing segments.
The current valuations also keep us positive on the stock, it said.