Buy Shriram Transport: Rajesh Agarwal

Buy Shriram Transport, says Rajesh Agarwal of Eastern Financers.

Agarwal told CNBC-TV18, "Buy Shriram Transport with a stop loss of Rs 595 and a target of Rs 625. This is basically a deposit taking NBFC primarily into financing of second hand and commercial vehicles. This company has a 25% market share in the pre owned CV financing and around 8% in the new CV financing business." He further added, "They function in an environment where there are strong entry barriers and very few organised markets and hence is almost in a monopolistic situation. On the valuation front, they have reported FY11 earnings of around Rs 55. We expect earning of Rs 70 in the coming year. Hence, it