Buy Shriram Transport with target of Rs 710: Agarwal

Buy Shriram Transport with a target of Rs 710, says Rajesh Agarwal, Head of Research at Eastern Financiers.

Agarwal told CNBC-TV18, "One can buy Shriram Transport with a stop loss of Rs 664 and target of Rs 710. This is basically a deposit taking NBFC primarily into commercial vehicle financing, has a market share of around 25% in old commercial vehicle financing and around 8% in new commercial vehicle financing."
He further added, "This company is functioning in an environment where there are strong anti-barriers and there is no organized competition as such. Even on the valuation parameter this company is trading at a PE of less than 10, and a price to book of 3. They have reported an EPS of around 55 in the current year and we are expecting the company to report an EPS of around 70 in the coming year, so buy this stock with a target of Rs 710."