Shriram Transport may hit Rs 850 in 2-3 months: Tulsian

SP Tulsian of sptulsian.com said he would not be surprised to see a price of Rs 850 in Shriram Transport Finance, probably in the next 2-3 months.

Tulsian told CNBC-TV18, “Very good numbers from Shriram Transport Finance. In fact, they have exceeded the poll estimate of Rs 350 crore and even if one sees on a sequential basis for Q3 they had Rs 75 crore and now they have posted Rs 383 crore in Q4. This translates into EPS of close to about Rs 16.7 to Rs 16.75 for Q3 as well as Q4. If I take a call on FY14, probably you are expecting to see an EPS of Rs 70.”
“So, taking all this into consideration when you compare it with other NBFCs, this stock should get vastly re-rated. I won’t be surprised to see a price of Rs 850 maybe in the next 2-3 months because even for this company, people have been talking Shriram Group also has a prospective banking licence,” Tulsian added.