Buy Shriram Transport on dips: Sekhar

Phani Sekhar, Fund Manager, Angel Broking is of the view that long term investor can accumulate Shriram Transport at lower levels.

Sekhar told CNBC-TV18, “Shriram Transport is good business, but operationally they will find challenges over the next four quarters or so, primarily because they have now entered into less than 5 year pre-owned CV market which is dominated by banks which is going to put pressure on their spreads leading to lower Net Interest Margins (NIM). Moreover, higher securitization has also lead to a pressure on NIMs. So a combination of this is going to lead to tepid growth over the next four to six quarters. However, it remains a good business. A longer term investor can take advantage of these declines and accumulate it.”