CD Equisearch's research report on Shriram TransShriram Transport Finance Company Limited is the flagship company of the Shriram group which has a significant presence in consumer finance, life insurance, general insurance and stock broking. It is one of the largest assets financing NBFCs in the country and a holistic finance provider for the pre-owned commercial vehicle industry, seeking to partner small truck owners for every possible need related to their assets. The stock currently trades at 1.7x FY16e book value (14.3x FY16e EPS) and 1.5x FY17e book value (13.1x FY17e EPS). Valuation has plunged to multi-year lows not least due to growing concerns on asset quality and tepid recovery in CV sector. Yet the company has steered clear by posting robust growth in its on-books AUM. We, therefore, assign ‘buy’ rating on the stock with revised target of Rs 943 (previous target: Rs 1082) based on 1.9x FY17e BV For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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