Buy Shriram Transport, says Rajesh Agarwal

Buy Shriram Transport, says Rajesh Agarwal of Eastern Financiers.

Agarwal told CNBC-TV18, "One can buy Shriram Transport with intraday stop loss of Rs 625 and target of Rs 720. This is a deposit taking NBFC which is basically into second hand CV financing and they have market share of 25% in the pre-owned segment and 8% in the entire CV segment."
He further added, "The company functions in an environment where there are lot of entry barriers and high competition and the company has absolute majority in market share. FY11 EPS was around Rs 55 and we expect FY12 EPS to be about Rs 70-72. PE is less than 10 which is very competitive and attractive, so one can buy this."